Wide View Strategy: A Trend-Following System
⏱️ Estimated Reading Time: 6 minutes
📝 Summary: The Wide View Strategy is a dual-timeframe system (M30/M15) that captures trends using EMAs and identifies precise entry points with Bollinger Bands and Oscillators. Ideal for Forex and Stock traders.
The Wide View Strategy is a classic trend-following method designed to identify and enter trades at the end of market corrections, within a well-defined uptrend or downtrend. It utilizes dual timeframes — M30 and M15 — to enhance precision and reduce noise.
Table of Contents
1. Trend Identification
The strategy relies on two Exponential Moving Averages (EMAs) on the M30 chart to define the dominant direction:
- 48-period EMA: Captures the last full day’s trend.
- 120-period EMA: Reflects approximately 2.5 days’ trend.
To evaluate trend strength, examine the angle of the EMAs (steeper is stronger) and the divergence between them. If the short EMA pulls away from the long EMA, the trend is gaining momentum.
2. M5 Chart Configuration
Once the trend is confirmed on M30, we switch to the M5 timeframe to pinpoint entries. The recommended indicators are:
- Bollinger Bands: Period 6, Deviation 3.
- Stochastic Oscillator: Settings 6, 3, 3.
- Williams %R: Period 48.
These indicators help identify price exhaustion (overbought/oversold conditions) aligned with the higher-timeframe trend.
3. Trade Signal Generation
A valid entry signal requires confluence:
- Williams %R reaching oversold/overbought levels.
- A strong-bodied candlestick forming near the Bollinger Bands limits.
- The close of the candle should be near its high (for buy) or low (for sell).
4. Risk Management & Exits
Control is critical. The standard risk per trade is 0.5% of account balance.
- Stop Loss (SL): Placed just below/above the outer Bollinger Band.
- Take Profit (TP): Aim for a Risk-to-Reward ratio of 1:2.
- Trailing Stop: Alternatively, close half the position at 30 pips profit and trail the rest.
5. Advanced Filtering (Divergence)
You can increase exposure to 1% risk if a clear price/oscillator divergence appears on the Stochastic Oscillator. This often signals a powerful return to the main trend.
Conclusion
The Wide View Strategy offers a structured approach to trading, combining reliable indicators with strict risk control. While optimized for Forex, it can be adapted for indices and commodities by adjusting the trading hours and EMA settings.
Test the Wide View Strategy.
Open a demo account with a regulated broker and practice spotting these setups risk-free.
Frequently Asked Questions
Can I use this strategy on Crypto?
Yes, but due to higher volatility, consider increasing the EMA periods (e.g., to 50 and 150) to filter out noise effectively.
Why use M30 and M15?
M30 provides the “Wide View” of the intraday trend, while M15 (or M5 for entries) allows for tighter stop losses and better risk-to-reward ratios.
What if the EMAs are flat?
Flat EMAs indicate a ranging market. This is a trend-following strategy, so it is best to stand aside and wait for a clear angle to develop.
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