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I’ve been waiting for a sell signal to materialize on this SMA Crossover Pullback forex mechanical system since a downward crossover took place last week. Lo and behold… a pullback took place!

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

As you can see on EUR/USD’s 1-hour forex chart above, stochastic turned down from the overbought region a few days after the SMA crossover occurred. The forex system generated a short entry at 1.1243, with a 150-pip stop at 1.1393 and a 300-pip profit target at 1.0943. It looks like price is within striking distance of the target, which is around the previous lows, so I’m hoping that this signal will chalk up another win for the SMA Crossover Pullback system this time.

Oh, and if you’re wondering what all these signals are about, make sure you’re able to read up on the SMA Crossover Pullback forex mechanical system rules!

Since this system’s working out pretty well for EUR/USD so far (see the Backtest Results for April to May right here), I’m also thinking of applying this strategy on other pairs. Think it would also work on GBP/USD or USD/JPY? How about the comdolls or yen crosses? I’ll see if I can include another pair or two in my next updates!