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Custom MA-MACD Forex Trading Strategy

The market is like the ocean. It has waves that come and go that has different characteristics and sizes. Some waves are big, some are small, some waves come too often, other times the ocean is too quiet, big waves are nowhere to be found. Many people enjoy the waves as it passes under them, lifting up for a bit, then bringing them back down in between the waves’ trough. But there are people who are able to ride the big waves, the surfers, and they are the ones who have the most fun. As traders, we shouldn’t be like the regular folks who’d just rise a fall with the waves, we should learn to ride the big waves. That is where the money is.

So, what am I waves am I talking about in relation to the market? It is the trend. The market is characterized by the coming and going of trends. Sometimes the market is strongly trending it seems like it will never end. Sometimes the market is too volatile it changes directions every now and then. Sometimes, volatility is nowhere to be found and no strong enough trend could be found. Now, you may already be getting my point. It is those who learn to ride the big trend or “waves” who make the most money. The question is how?

Moving Averages and MACD – A Basic Method of Identifying Probable Trends

One of the better ways to identify trend direction is the use of moving averages. When you come to think of it, trending markets is basically a market wherein price is consistently rising or falling. This constant rise or fall in price would cause its average to rise or fall along with it. In the context of a moving average, it will cause it to slope either up or down.

By using a moving average, we could make it visually easier to identify a trend by identifying the location of price in relation to the moving average and the slope of the moving average. If price is above it and the moving average is sloping up, then the market is said to be trending up, if it is the reverse, then it is trending down.

Some take it a bit further by using multiple moving averages and identifying the location of a moving average in relation to another. If a faster moving average is above a slower moving average, then it is identified as an uptrend. Flip it over for the downtrend. This is the concept behind crossover strategies. Traders enter a trade as the faster moving average crosses the slower moving average signaling a probable start of a new trend.

The Moving Average Convergence-Divergence (MACD) also has the same concept. In fact, its plotting is derived from the relation of a faster moving average in relation to another slower moving average. In a way, it shares the same concept with the crossover of moving averages. The difference is that it is plotted in a separate window.

Trading Strategy Concept

Knowing how crossovers of moving averages are used to identify probable new trends, we will be using a custom moving average to identify as a basis for the crossovers. It will be a moving average with multiple lines, which when fanning out would form a rainbow-like stack. Just as the regular crossover strategy, we will buy as the faster moving average crosses over the slower moving average going up. On the other hand, we will be taking short positions as the faster moving average crosses below the slower moving average.

As an additional confirmation, we will also be using the MACD. We will be taking buy signals only when the faster MACD is above the slower MACD. This is also shown through histograms based on whether it is positive of negative. Flip it over for the filter on sell signals.

Indicators:

  • RainbowMMA_08
  • RainbowMMA_11
  • realMACD

Timeframe: any

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup

Entry

  • realMACD histograms should be positive
  • Enter a buy market order as the RainbowMMA_11 crosses above the RainbowMMA_08 indicator

Stop Loss

  • Set the stop loss below both moving average indicators

Exit

  • Close the trade as the realMACD histogram crosses below zero

Sell (Short) Trade Setup

Entry

  • realMACD histograms should be negative
  • Enter a buy market order as the RainbowMMA_11 crosses below the RainbowMMA_08 indicator

Stop Loss

  • Set the stop loss above both moving average indicators

Exit

  • Close the trade as the realMACD histogram crosses above zero

Conclusion

This is a decent moving average crossover strategy using a custom indicator.

By adding the MACD histogram filter, we are able to have a double confirmation with regards to the trend. Some traders prefer to use the lines and add additional filters based on the where the line is located in relation to the zero line. Some prefer to trade before lines cross zero with the argument that price have a greater tendency to go back to its mean. Other traders trade after crossing over the zero-line arguing that it is a confirmation that the trend has started. I tend to lean towards the camp of trading before crossing over the zero line as it allows for more juice to be squeezed. You won’t want to trade as the trend is ending. But to make it a tad simpler, we will use the histogram rule.

Using the MACD histogram reversal as our exit rule also allows us to exit the trade early on the reversal. Usually, the histogram reverses as the MACD is getting overextended and is showing signs of reversing back to the mean. This is more of a conservative approach. Other traders would prefer using the actual reversal of the moving averages as the basis to exit the trade. I find this a little bit too late. Usually this would cause you to be giving back much of the profits.

Like most crossover strategies, this strategy is excellent for catching trends during a trending market. However, it is not the best strategy to use during a low volatility ranging market. Remember, we are here to ride the big waves, not just bob up and down on the small waves.


Forex Trading Systems Installation Instructions

Custom MA-MACD Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

Custom MA-MACD Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install Custom MA-MACD Forex Trading Strategy?
  • Download Custom MA-MACD Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select Custom MA-MACD Forex Trading Strategy
  • You will see Custom MA-MACD Forex Trading Strategy is available on your Chart
Click here below to download:

Save

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Confirmed Crossover Forex Trading Strategy

Trading strategies need not be complicated. Even the most basic trading strategies could make money. All you need is a positive expectancy based on the mix of the strategies reward-risk ratio and its win percentage. If you’ve got this down, then you’ve won half the battle.

But how do we get to make a simple strategy to have a good reward-risk ratio and win percentage? The answer – CONFLUENCE.

Confluence is basically a combination of different rationales that could each work as a standalone, but when put together increases the odds on your favor. This could either be a confluence of a price action setup, indicator-based setup, a crossover strategy, etc. The key is to have multiple setups point the same direction at the same time. By having such agreement from multiple sources, we end up having a higher probability trade. That is how confluence works.

The 5-10 SMA Crossover Strategy

The 5-10 Simple Moving Average (SMA) crossover strategy is a very basic and popularly used trading strategy. It is a pretty fast crossover strategy that excels in catching a trend pretty early.

Below is an example of a 5-10 crossover trade setup.

As you could notice, the 5-10 SMA strategy is able to capture big trends from start to finish. Because the moving averages used hug closely to price, the crossovers could respond quickly to whatever price does and therefore allows us to catch a trend right from the start.

Trading Strategy Concept

Knowing that confluences stack the odds on our favor when looking for confluences, this strategy will be based on the 5-10 SMA Crossover Strategy, but with some additional confluences. What we will be looking for is a crossover that agrees with the long-term trend and a fresh thrust.

To filter signals that do not agree with the long-term trend, we will be using the 200 Exponential Moving Average (EMA). This is a commonly used moving average filter that many traders use to determine the long-term trend.

As for our short-term thrust or fresh trend, the 5-10 SMA crossover is already a signal in that regard. However, to further filter trades, we will be using the Stochastic Oscillator. This indicator has two oscillating lines, both of which are pretty responsive to price action. The crossover of these two lines could also be used as an entry signal. But we will be using it differently for this strategy. We will be using it as a confirmation of the crossover on top of the 5-10 SMA. What we will be looking for is for the stochastic oscillator lines to have already crossed over each other. If the 5-10 SMA is crossing on a bearish signal, the fast stochastic should be below the slow stochastic line. If the 5-10 SMA is making a bullish signal, then the fast stochastic should be above the slow stochastic line. Not only that, the fast stochastic should also be crossing over the midline of the Stochastic Oscillator, which is 50.

These confluences should stack up the odds on our favor.

Indicator:

  • 5-period SMA (Gold)
  • 10-period SMA (Green)
  • 200-period EMA (Brown)
  • Stochastic Oscillator
    • %K period: 14
    • %D period: 3
    • Slowing: 3

Currency Pair: any

Timeframe: 4-hour and daily charts

Trading Session: any

Buy (Long) Trade Setup Rules

Entry

  • Price and the 5 & 10 SMAs should be above the 200 SMA
  • Fast Stochastic should be above the Slow Stochastic line
  • 5 SMA should cross above the 10 SMA
  • Fast Stochastic should be crossing above 50
  • Enter at the close of the candle corresponding the confluence of the above rules

Stop Loss

  • Set the stop loss below the 10 SMA

Exit/Take Profit

  • Option 1: Set the take profit at 2x the risk on the stop loss
  • Option 2: Close the trade on the reverse crossover of the 5 & 10 SMA

Sell (Short) Trade Setup Rules

Entry

  • Price and the 5 & 10 SMAs should be below the 200 SMA
  • Fast Stochastic should be below the Slow Stochastic line
  • 5 SMA should cross below the 10 SMA
  • Fast Stochastic should be crossing below 50
  • Enter at the close of the candle corresponding the confluence of the above rules

Stop Loss

  • Set the stop loss above the 10 SMA

Exit/Take Profit

  • Option 1: Set the take profit at 2x the risk on the stop loss
  • Option 2: Close the trade on the reverse crossover of the 5 & 10 SMA

Conclusion

This strategy is a commonly used strategy among traders. Many traders use this type of strategy as a newbie, but there are also other traders who have mastered this type of strategy who are very profitable.

Each component rules of the strategy would have a low probability if used as a standalone rule. However, combining all the rules together and having a confluence, we are able to increase the odds of a successful trade.


Forex Trading Systems Installation Instructions

Confirmed Crossover Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

Confirmed Crossover Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install Confirmed Crossover Forex Trading Strategy?
  • Download Confirmed Crossover Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select Confirmed Crossover Forex Trading Strategy
  • You will see Confirmed Crossover Forex Trading Strategy is available on your Chart
Click here below to download:

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CCI Strength Forex Trading Strategy

There are thousands of different indicators available in the trading world as of today. Among those, there will be rubbish indicators, while many could and would also work. You could even pick out any built-in trading indicator available on your trading platform and make it work for you.

But you may say, “Why am I not making money with what I’m currently using?” It most likely isn’t the indicators fault, but instead your approach on how you use it.

You see, trading indicators are simply mathematical equations that plot lines on the price chart or plot a chart on another window, which are derived from price itself. Its purpose is basically given on how it is called – to “indicate” what price is doing based on an objective, data driven, mathematical equation. Notice that it is not called a “predictor” but rather an “indicator”. It couldn’t tell you what price will do, but it could give you an idea of what price has greater odds of doing based on how it has behaved in the past. In a way, indicators allow traders to make a sense of what the market condition is and what price is doing. It is more of a wind vane pointing where the wind is blowing, giving traders an idea which way direction has lesser headwinds.

Some traders get how indicators should be used, just as a way of reading the market condition. Still, they read the market condition wrongly because of how they use and read the indicator. What could be a fresh trend might be read as a market reversal condition. What could be a retracement might be seen as an end of a trend. This could be because of the wrong approach on how the indicator is used.

A Different Lens on the CCI

The Commodity Channel Index (CCI) is an indicator developed by Donald Lambert. It is an oscillating indicator that compares the current price to the historical average price based on the simple moving average of the high, low and close. The difference is that it is formulated in a way that 70% – 80% of the figures would fall within the +/-100 range. Any price that corresponds to the CCI going over this range is something that could impact market condition, simply because it is out of the usual range.

Many people use it as an overbought-oversold indicator. I’m not saying that it is wrong. It could work. In fact, in a ranging market environment, using the CCI as a mean reversion indicator could work.

But this is not the only way to read it. You see, if the CCI goes over this range, it could also mean strength or a momentum shift. This is usually the case when a fresh trend is starting or is already established. In fact, during a trending market environment the CCI tends to hover around or over the +100 or -100.

Trading Strategy Concept

This strategy is based on reading the market correctly on a fresh trend and entering on retracements based on the CCI indicator.

Knowing that the CCI tends to hover around the +100 or -100 on a trending market environment, we will be looking for a condition wherein it pierces over these figures indicating a probable start of a fresh trend or momentum. This should then be followed by a hover around this area, then a retrace to the zero level. The retrace should then be our entry point as this could be the area where price would resume the trend.

We will also be using the 50 Exponential Moving Average (EMA) just to filter out trades and identify fresh trends. Fresh trends usually coincide with price piercing over the 50 EMA with a momentum candle.

Indicators

  • 50-period EMA (Gold)
  • 20-period CCI

Currency Pairs: any

Timeframe: 1-hour and above

Trading Session: any

Buy (Long) Trade Setup Rules

Entry

  • Price should be above the 50 EMA
  • The CCI should pierce above the +100 level
  • CCI should hover around +100 level a bit
  • The CCI should retrace to zero
  • Enter a buy market order as soon as the CCI hooks back up indicating a possible trend resumption

Stop Loss

  • Set the stop loss at the swing low below the entry candle

Take Profit

  • Set the take profit target at 2x the risk on the stop loss

Sell (Short) Trade Setup Rules

Entry

  • Price should be below the 50 EMA
  • The CCI should pierce below the -100 level
  • CCI should hover around -100 level a bit
  • The CCI should retrace to zero
  • Enter a sell market order as soon as the CCI hooks back down indicating a possible trend resumption

Stop Loss

  • Set the stop loss at the swing high above the entry candle

Take Profit

  • Set the take profit target at 2x the risk on the stop loss

Conclusion

This is a standard trend following strategy using retracements as entry points. The difference is that we are using the CCI to indicate the strength of a crossover and a start of the new trend. By doing this, we are able to read the CCI correctly whenever a fresh trend is starting and when the probable entry points could be.

Using the CCI as an entry point though is not an exact entry. There will be times when price could stall a bit prior to continuing the trend. This is why we should set the stop loss at a logical point. A point which would invalidate our position because it is more likely that the trend will reverse.

This is not a purely “if-then” type of strategy. There is some form of discretionary observation that comes along with it. So, take time to practice it and develop the skill of reading trending market conditions.


Forex Trading Systems Installation Instructions

CCI Strength Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

CCI Strength Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install CCI Strength Forex Trading Strategy?
  • Download CCI Strength Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select CCI Strength Forex Trading Strategy
  • You will see CCI Strength Forex Trading Strategy is available on your Chart
Click here below to download:

Save

Save

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CCI Hidden Divergence Forex Trading Strategy

The Commodity Channel Index (CCI) developed by Donald Lambert is one of the tools available to traders for free yet isn’t utilized often. This is probably because it is less popular compared to its counterparts such as the RSI, MACD, stochastics, etc. But if you’d look at it closely, it does have a lot of value to offer if used correctly.

The CCI, like its cousins, is also an oscillating indicator. But it also has characteristics and features that is unique only to it. Contrary to common belief, the CCI is an unbounded oscillator. This means that it should be free to oscillate up to whatever number as opposed to being bound by a fixed range. Yes, it does have markers, but it is not limited up to those numbers. It is also somewhat similar to the RSI because of its jagged oscillation, which allows it to shadow price action better.

The CCI has multiple uses. It allows traders to determine strength in a move, determine probable overextended market conditions, and more. But one of its uses that is not usually utilized is in finding divergences, which we would be exploring in this strategy.

Hidden Divergences – A Higher Probability Entry Point

Divergences are basically discrepancies with regards to the depth of the oscillation of an indicator and price. Price gyrates up and down the graph on a boundless space whereas oscillating indicators gyrate on a much tighter space. This causes the discrepancy between price and an oscillating indicator, even though indicators typically shadow price action.

Divergences usually hint of an impending reversal. This entry on a probable reversal usually means bigger returns if you catch a reversal right from the start.

However, different types of divergences differ in the type of reversals where they usually occur. Regular divergences often occur on a bigger picture reversal at the end of an extended trend. Hidden divergences on the other hand typically occur on a retracement. This means that regular divergences could allow traders to rake in big money if it catches the whole new trend after the reversal, but hidden divergences have higher probabilities of success when taken near the start of a fresh trend.

Below is a chart of the different types of divergences. Notice how the hidden divergence is characteristic of a retracement on a trending environment, while regular divergences look more of a full-blown reversal.

Trading Strategy Concept

This strategy is a trend following strategy that has entries on probable retracements based on hidden divergences.

To ensure that we are trading with the trend, we will be using a 50-period Exponential Moving Average (EMA). We will define trend based on where price is in relation to the 50 EMA and on whether it is sloped or flat. A sloppy EMA will usually occur on a trending market environment.

To find our hidden divergences, we will be using a 20-period CCI. This will be our main indicator which we will use to find our entry points.

Take note that retracement entries usually have higher probability near the start of a trend. Entries that surface at an extended trend should be taken with caution.

Indicators:

  • 50-period EMA (Gold)
  • 20-period CCI

Timeframe: any

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup

Entry

  • Price should be above the 50 EMA
  • The 50 EMA should be sloping up
  • A hidden bullish divergence should be clearly noticeable
  • Multiple hidden divergences on one entry point would be better
  • A reversal candlestick pattern (pin bars, engulfing patterns, etc.) would yield higher probabilities
  • Enter a buy market order on the confluence of the above rules

Stop Loss

  • Set the stop loss at the fractal below the entry candle

Exit/Take Profit

  • Option 1: Close the trade on the cross of the CCI below 50
  • Option 2: Set the take profit target at 2x the risk

Sell (Short) Trade Setup

Entry

  • Price should be below the 50 EMA
  • The 50 EMA should be sloping down
  • A hidden bearish divergence should be clearly noticeable
  • Multiple hidden divergences on one entry point would be better
  • A reversal candlestick pattern (pin bars, engulfing patterns, etc.) would yield higher probabilities
  • Enter a sell market order on the confluence of the above rules

Stop Loss

  • Set the stop loss at the fractal above the entry candle

Exit/Take Profit

  • Option 1: Close the trade on the cross of the CCI above 50
  • Option 2: Set the take profit target at 2x the risk

Conclusion

This strategy is a great trend continuation strategy or one which could be used in combination with other trend continuation strategies.

The key to this strategy is to have a feel on whether the trend is already overextended or not. Divergences that occur near the start of the trend have greater chances of success. The odds diminish the longer the trend is or the more the retraces are.

If you are able to catch one at the start of a trend, try to ride it all the way down. Aside from the exit strategies above, you could also employ some form of trailing stop to allow you to catch a big chunk of the wave.

This strategy is not the Holy Grail but if practiced and mastered it could yield good results.


Forex Trading Systems Installation Instructions

CCI Hidden Divergence Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

CCI Hidden Divergence Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install CCI Hidden Divergence Forex Trading Strategy?
  • Download CCI Hidden Divergence Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select CCI Hidden Divergence Forex Trading Strategy
  • You will see CCI Hidden Divergence Forex Trading Strategy is available on your Chart
Click here below to download:

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Band Bounce Forex Trading Strategy

Trading with the trend is one of the easiest ways to make money out of the forex market. This is true not only to forex but also to all other trading instruments, whether it be penny stock trading, index trading, binary options, commodities, etc. This is common knowledge among many traders. You would often hear the trading adage, “Trade with the trend.” But even though most traders know this, many are at a loss when determining the direction of a trend.

Exponential Moving Average (EMA) Band Trend Trading

Moving averages are one of the best ways to determine trend. The concept behind it is simple and logical. Get the average of the recent historical price closes then compare the current price to the average. If the current price is higher, then we have an uptrend, if the price is lower, then we have a downtrend. This concept is commonly used with the 50 and 200-period Exponential Moving Average (EMA).

Although this concept works, there are times when the short-term, mid-term, and long-term trend don’t agree. Price could be below the 50 EMA but above the 200 EMA. What then? What direction should we take?

There is another way to determine trend using EMAs. This is by using multiple EMAs. You would sometimes see traders having a band of moving averages on their chart. This is basically what they are doing. They are determining the trend by the position of the moving averages in relation to another moving average with a different period.

For example, we could have a 25, 60 and 100-period EMA, all of which are commonly used. Then we could determine a trend if the three EMAs are stacked and which direction they are going. If the fastest EMA is on top, in this case the 25, and the slowest is at the bottom, the 100, then we have a bullish market condition. If it is the reverse, then we have a bearish bias.

EMA Band Trading Strategy Concept

The concept behind this strategy is to use the EMA band as an indicator for trend direction. We will be using the EMAs we’ve used as an example above.

  • 25 EMA: Gold
  • 60 EMA: Green
  • 100 EMA: Brown

If the 25 EMA is on top and the 100 EMA is at the bottom, then we will be taking buy trades. If the 25 EMA is at the bottom and the 100 EMA at the top, then we will be looking for sell setups. If the EMAs are not stacked, then we will not be taking a trade as the market might still be reversing and has not yet established a trend.

Then, for our entry, we will be looking to trade deep retracements against our trading direction. These deep retracements should be a short-term overextended market condition, ripe for a reversal and resumption of the main trend direction.

To determine if the market is on an overextended condition we will be using the Robby DSS custom indicator. This is a smooth oscillating indicator which determines turning points by plotting red and blue dots. It also conveniently has an oversold and overbought marker on the 20 and 80 line. Below the 20 would be considered an oversold market condition. Above the 80 would be an overbought market condition. To determine our entry points, we will be looking for color changes on these areas that agree with the direction of the EMA bands trend bias.

Indicators:

  • 25 EMA: Gold
  • 60 EMA: Green
  • 100 EMA: Brown
  • Robby DSS Forex

Timeframe: 1-hour, 4-hour, and daily charts

Currency Pair: any

Session: any

Buy (Long) Trade Setup Rules

Entry:

  • The EMAs should be stacked
    • 25 EMA – top
    • 60 EMA – middle
    • 100 EMA – bottom
  • The Robby DSS should be on an oversold market condition
  • Enter a buy market order on the close of the candle corresponding the color change of the Robby DSS indicator from red to blue

Stop Loss:

  • Set the stop loss at the swing low below the entry candle

Take Profit:

  • Option 1: Set the target take profit at 2x the risk on the stop loss
  • Option 2: Set the target take profit at the high of the prior swing high

Sell (Short) Trade Setup Rules

Entry:

  • The EMAs should be stacked
    • 25 EMA – bottom
    • 60 EMA – middle
    • 100 EMA – top
  • The Robby DSS should be on an overbough market condition
  • Enter a buy market order on the close of the candle corresponding the color change of the Robby DSS indicator from blue to red

Stop Loss:

  • Set the stop loss at the swing high above the entry candle

Take Profit:

  • Option 1: Set the target take profit at 2x the risk on the stop loss
  • Option 2: Set the target take profit at the low of the prior swing low

Conclusion

This is a strategy that would yield very high probability trade setups. Given that the trades taken would be in the direction of the general trend and the entries are based on short-term overextended market conditions, this would allow traders to enter the market at prime reversal conditions, which at the same time goes with the direction of the general trend.

With regards to the take profit targets, either of the two would be great and have their own advantages and disadvantages. Setting the target at twice risk would fix the reward-risk ratio to 2:1. Any ratio above 1:1 could be profitable in my books as long as the win-loss ratio is also positive. Also, there will be times when if the swing points are used as target take profits, the reward-risk ratio would be below 2:1. You could be leaving much on the table as these areas could often be surpassed since price usually makes new highs or lows on a trending market.

On the other hand, if the trade setup would allow for a tight stop loss, then we could have targets greater than 2:1. However, we shouldn’t just set targets in a whim. The logical target in this case would be the swing points, as these are also natural supports and resistances. Since we are trading trending markets exclusively, there is a high probability that the swing points would be surpassed, giving us a high probability trade.

The key point is to have a reward-risk ratio of 2:1 or higher.

Another exit strategy could be exiting on a trailing stop. This could either be to trail the stop loss a few candles back or to trail it based on fractals. Either could work. This would allow you to ride the whole short-term trend but could also cause reward-risk ratios to fluctuate above or below 2:1.

Test and tweak and you could have a good strategy on your hand.


Forex Trading Systems Installation Instructions

Band Bounce Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

Band Bounce Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install Band Bounce Forex Trading Strategy?
  • Download Band Bounce Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select Band Bounce Forex Trading Strategy
  • You will see Band Bounce Forex Trading Strategy is available on your Chart
Click here below to download:

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1450 Flag Forex Trading Strategy

Pattern trading is one of those strategies out there that just simply works. It’s been tested, studied, traded and proven to bring in the dough. However, many chose to ignore this type of strategy because it just seems too simplistic. Others think it just doesn’t make sense. While others just wouldn’t want to put in the work to become proficient in identifying patterns.

I’ve met traders who just don’t believe in pattern trading simply because they don’t think patterns just don’t seem to make any sense in trading. But when you come to think of it, patterns represent a repeated behavior among many traders which are expressed on a chart. The patterns form a certain way because traders respond in the same manner and for the same behavioral reasons to certain market conditions.

For example, a triangle represents a market congestion. This means that volume is gradually getting lower and lower as traders move to the sidelines waiting for the next big push, which usually happens at the breakout of a triangle pattern.

An ascending or descending triangle on the other hand is the same market congestion, only that the congestion has become one sided. This means that on an ascending triangle, the bears are just trying to hold the line, while the bulls are still trying to push the market. As the bears fail to hold the resistance level, the market enters a rapid bullish expansion, and vice versa.

The Flag Pattern – What does it mean and why it works?

Flags and pennants are continuation patterns that occur after a rapid market expansion. The rapid market expansion is represented by the pole of the pattern. Then, after the rapid expansion phase, the market enters into a congestion phase forming a sideways pattern or a retracement. This contraction phase forms the body of the flag or pennant.

Flags and pennants are different patterns but have the almost the same characteristic and effect, only that they have a slight difference in shape and pattern. Flags have more of a perpendicular support and resistance on the body. Pennants on the other hand have a bit more of an asymmetrical contraction phase that gradually gets tighter. In a way, this tightening of support and resistance means that the volume is gradually getting thinner, much like the triangle pattern. This makes pennants very powerful because as the pent-up volume enters the market, it causes a sudden spike on the expansion phase, although flag patterns also do tend to have these types of expansion phases often.

So, why does it work? First, it is the typical cycle of expansion and contraction of the market. This means that it is quite predictable that as price breaks support or resistance on a flag pattern, the next phase would be a sudden expansion. Another reason would be that flags are typically retracements, which means that entering during this phase in the market could allow a trader to enter on a fresh thrust going the same direction as the established trend. Lastly, it is a continuation pattern which means that often times we are trading with the trend.

Trading Strategy Concept

Although flag and pennant patterns are high probability patterns, many traders find it difficult to trade. This is because identifying it is quite difficult to an untrained eye.

The idea behind this strategy is to use moving averages to identify the area in which could expect flags and pennants to form after a sudden thrust. To do this, we will be using the 14-period and 50-period Exponential Moving Average (EMA). After a sudden thrust, we will be waiting for price to retrace to the area between this two moving averages. Then, we will try to identify flag or pennant patterns on it. If we could identify one, then we wait for the breakout and trade accordingly.

We will also be using the 200 EMA to help us identify trend. This means that price and the other two EMAs should be on the correct side of the 200 EMA. This also means that all three EMAs should be stacked depending on the direction of the trend.

Indicators

  • 14-period EMA (Gold)
  • 50-period EMA (Green)
  • 200-period EMA (Brown)

Timeframe: any

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup Rules

Entry

  • A bullish price thrust should occur
  • Price should be above the EMAs
  • The EMAs should be stacked in the following order:
    • 14 EMA: top
    • 50 EMA: middle
    • 200 EMA: bottom
  • Wait for price to retrace between the 14 & 50 EMA
  • A flag or pennant pattern should be identifiable
  • Wait for the close of the candle which breaks out of the resistance line
  • Enter a buy market order at the close of the breakout candle

Stop Loss

  • Set the stop loss at the fractal below the entry candle

Take Profit

  • Set the take profit at 2x the risk

Sell (Short) Trade Setup Rules

Entry

  • A bearish price thrust should occur
  • Price should be below the EMAs
  • The EMAs should be stacked in the following order:
    • 200 EMA: top
    • 50 EMA: middle
    • 14 EMA: bottom
  • Wait for price to retrace between the 14 & 50 EMA
  • A flag or pennant pattern should be identifiable
  • Wait for the close of the candle which breaks below the support line
  • Enter a buy market order at the close of the breakdown candle

Stop Loss

  • Set the stop loss at the fractal above the entry candle

Take Profit

  • Set the take profit at 2x the risk

Conclusion

This is a strategy that many traders have been profiting from. In fact, there are traders who claim to have more than 100% return on their profits year-on-year with this type of strategy, and even more.

It is simple and is logical on a behavioral standpoint. We could now explain why it works based on how the market thinks.

However, not all patterns should be taken right away. Avoid trading expanding patterns as this means that the market is not congesting but is rather gradually expanding, lessening the likelihood of a rapid expansion phase on the breakout. This also makes identifying support and resistance a bit harder as these lines would often be moved on expanding patterns.

Other traders also prefer to trail their stop loss as their exit strategy. This could work on a strongly trending market with less hurdles along the way. However, during slowly trending markets, this strategy could fail because you could be taken out of the trade before the trend ends.

Others also set their take profits differently. Some set take profits at the high or low of the thrust or pole of the flag pattern. Others use the pole as a measuring stick on how long the next thrust could be. Others use a Fibonacci expansion method which allows them to set stop losses at a Fibonacci expansion level.

Study this concept and you could also be one of those making money out of these patterns.


Forex Trading Systems Installation Instructions

1450 Flag Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

1450 Flag Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install 1450 Flag Forex Trading Strategy?
  • Download 1450 Flag Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select 1450 Flag Forex Trading Strategy
  • You will see 1450 Flag Forex Trading Strategy is available on your Chart
Click here below to download:

Save

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30-50 Flags and Pennants Forex Trading Strategy

Pattern trading is one of the branches of trading that has withstood the test of time. And this isn’t only true about forex trading, but it encompasses almost all markets, whether it be stocks, bonds, commodities, etc. It also doesn’t only work on one holding period method, but it works across all timeframes, from scalpers, day traders, and even swing traders. There are small cap stocks day traders who have been successful scalping the market while there are also a lot of forex day and swing traders who have made consistent profits through pattern trading.

Flags and Pennants

Among the many basic patterns used in trading, there are a couple of continuation patterns that have a great degree of success and at the same time could be explained why price does it what it does with these patterns – the flags and the pennants. Below is a diagram of how they should look like.

Flags and pennants are both continuation patterns, which have a lot of similarities.

First, let’s discuss the flag pattern. The flag pattern is a pattern with a support and resistance that goes against an initial thrust. This support and resistance forms a channel which makes up the flag. Take note that flags usually go against a prior thrust. This thrust forms the pole of the flag. Being that the channel formed goes against a prior thrust, the flag pattern is an expansion phase followed by a retracement. As most retracements do during a trending market environment, it is usually followed by another expansion phase.

Next, the pennants. Pennants are almost the same as flags. Like the flag, it is also preceded by a thrust forming its pole. The difference is that instead of a channel, the supports and resistances tend to contract. In essence, pennants are the contraction and retracement phase after a rapid expansion. Now, the market usually moves in a sequence of expansions and contractions. As this theory would suggest, right after the pennant is formed, which is the contraction phase, another thrust could be expected.

The 30-50 EMA Dynamic Support and Resistance Area

Although flags and pennants are highly reliable, with a naked chart, it is often difficult to spot for an untrained eye. But there are ways to identify them a bit easier.

The 30 & 50 Exponential Moving Averages are great tools to help us identify these patterns. These EMAs are a pair of moving averages that work well as a support or resistance area. On a trending market environment, these are areas that we could expect price to retrace to and then bounce back. Given this characteristic of these 2 EMAs, we could use them as a dynamic support and resistance where we could expect retracements and contractions to occur during a trending market environment.

Trading Strategy Concept

This strategy is aimed at improving our skills in identifying flag and pennant patterns, which we often miss on a naked chart. By adding the 30-50 EMAs, we now have an area where we could anticipate these flags and pennants to take shape. If we spot one, then all we have to do is wait for the breakout, then enter the trade.

We will also be adding the 200 EMA as a filter to identify the main long-term trend direction. By trading according to the direction of the main trend, we improve our chances knowing that we have lesser headwinds in front of us.

Timeframe: 15-minute chart and above

Currency Pair: any

Session: any

Buy (Long) Trade Setup

Entry

  • Price should be above the 200 EMA
  • The 30 EMA (gold) should be above the 50 EMA (green), while both are above the 200 EMA (brown)
  • A flag or a pennant should be identifiable
  • Enter a buy market order on the close of the candle as soon as the resistance on the pattern is broken.

Stop Loss

  • Set the stop loss at the minor swing low below the entry candle

Take Profit

  • Set the take profit at the high on the thrust or pole of the pattern

Sell (Short) Trade Setup

Entry

  • Price should be below the 200 EMA
  • The 30 EMA (gold) should be below the 50 EMA (green), while both are below the 200 EMA (brown)
  • A flag or a pennant should be identifiable
  • Enter a sell market order on the close of the candle as soon as the support on the pattern is broken.

Stop Loss

  • Set the stop loss at the minor swing high above the entry candle

Take Profit

  • Set the take profit at the low on the thrust or pole of the pattern

Conclusion

This is a working strategy. What you could do with this strategy is to cycle through all the currency pairs that you trade. I would suggest that you look at everything except the exotics. These patterns do work on the exotics, but because some currencies are manipulated by the central banks, the pattern could be voided. As you look at all the pairs that you are trading, cycle through the timeframes until you find a viable pattern. Then, create a shortlist or watchlist of the currency pairs and timeframes where you found a pattern, then keep a close watch on them until the breakout occurs.

One thing to consider though when taking a trade is the reward-risk ratio. There will be setups that will have low reward-risk ratios if you are targeting the highs or lows of the pole. Some traders would rather aim for the same length as the pole. You could do this if you feel a bit aggressive, although as a warning, the lows or highs of the pole are already in itself a horizontal support or resistance.

Other traders on the other hand opt not to take trades if the reward-risk ratios are low based on the target take profits. Some traders would opt to take trades above 1.5:1 ratio, while others would only take 4:1 reward-risk ratios. The latter is quite difficult to accomplish but could be done if you would go down a timeframe lower for a more surgical yet riskier entry.

This strategy is one of those strategies that would work out of the box but requires a lot of practice and screen time. This is because you would have to learn to identify the patterns, but not only that, you would also have to identify the right supports and resistances and the right breakout candles.

Practice this strategy and you could make money out of it.


Forex Trading Systems Installation Instructions

30-50 Flags and Pennants Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

30-50 Flags and Pennants Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install 30-50 Flags and Pennants Forex Trading Strategy?
  • Download 30-50 Flags and Pennants Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select 30-50 Flags and Pennants Forex Trading Strategy
  • You will see 30-50 Flags and Pennants Forex Trading Strategy is available on your Chart
Click here below to download:

Save

Save

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2 MA Pivot Forex Trading Strategy

Many traders often get whipped around by the market not because they don’t know how to trade, but because they blindly chase the direction that the market is pointing them towards at that very moment. Now, this is fine if the market does not change directions for quite some time, however, often this is not case. The market could be in an environment where directions change so frequently. In these scenarios, traders could be chasing price around as price shifts and turns and goes all over the place.

A sound strategy shouldn’t be one that tries to chase price around. It should be one that has an approximate area where a trader should take interest whether be it a breakout, reversal, retrace, etc. If the thesis of the trading setup should work, the strategy should also have an approximation of where price could go, where it could find some hurdles, and if there is a substantial space for the trade setup to move around from the entry point and the closest probable hurdle, commonly known as supports and resistances. Finally, it would also be great if a trading setup could have some sort of confirmation that the trading setup is valid. This could be based on candlestick patterns, breakouts of a level, indicators, etc. Not all strategies employ a confirmation or an entry signal. Some prefer to use pending orders which often is setup prior to an entry signal. This could also work but its better to enter a trade late than to be in a trade which turns out to be an invalid setup in the first place.

Pivot Points as Areas of Interest

Pivot Points and all its support and resistance levels are a great tool to determine areas of interest. This is because pivot points are commonly used support and resistance levels which many traders use. Just as the usual support and resistance levels, if you’d observe pivot point levels, there are many instances where price would bounce off these levels and be a start of a fresh trend. This ticks off the first requirement of having an area of interest where we would anticipate trading setups. We then avoid chasing price around but instead we wait for our setups to take shape at a predetermined area, just as a hunter or a sniper would wait for its target and not chase it around.

Because pivot points have multiple levels, we also get to have an idea where the next hurdle could be. This would be in the form of the pivot point or its support and resistance levels. We could then determine if there is a substantial space for price to travel from the entry point to the next hurdle, and if the juice is still worth the squeeze. Ideally, a good trade setup should be better than 1:1 reward-risk ratio. The higher the better.

Fast Moving Average Crossovers as Confirmation

There are many ways to determine an entry signal or a confirmation of a trading setup. However, a fast moving-average crossover could also be just as good. This is because often, you would already be having a previous confirmation such as a candlestick pattern or a breakout of diagonal support or resistance. What a fast moving average does is it becomes an additional layer of confirmation to a trade setup. Think of it as having a guide pointing you towards that direction plus a GPS confirming the direction.

A pair of fast moving averages would be ideal compared to slow moving averages because it allows you to have a less lagging entry signal. You wouldn’t want to act too late because you are waiting for a slow moving average to crossover. You could be losing some pips on your profit by being too late on a trade.

Trading Strategy Concept

This strategy aims to make use of bounces off of the pivot points by using a crossover strategy as a confirmation of the bounce.

Prior to an actual reversal off a pivot point, price could stall or sharply reverse off of it. It could have a reversal pattern, whether it be a pin bar, engulfing, or whatever pattern around it. But not all traders are proficient or confident in using these patterns. What we could do however is make use of the fast moving averages as a confirmation of the reversal. We could wait for the actual crossover of the moving averages and take the trade accordingly.

Since crossovers are a bit lagging, it is also important to take note of the space from the entry and the next hurdle based on the pivot point levels. If the reward-risk ratio based on the levels is higher than 1:1, then we could take the trade.

Another advantage of using moving average crossovers is that sometimes these hurdles could be broken out of. By using moving average crossovers as an exit strategy, we could squeeze more pips out of the trade. We could also have the flexibility of exiting the trade if in case price doesn’t quite reach the next pivot point level.

To make things easier, we will be using a preset 2 Moving Average Signal custom indicator which also has arrows pointing the actual crossovers.

Indicators:

  • 2 Moving Average Signal
  • PivotWeekly

Timeframe: 1-hour chart

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup Rules

Entry

  • Price should be above the Pivot Point (PP) or any Support level (S1, S2 or S3)
  • Price should touch the Pivot Point (PP) or Support level (S1, S2 or S3)
  • Price should bounce off it and cause the moving averages to crossover and print an arrow pointing up
  • Enter at the close of the candle with the arrow pointing up

Stop Loss

  • Set the stop loss a few pips below the low of the candle

Exit

  • Close the trade as the moving averages crossover signaling the end of the trend

Sell (Short) Trade Setup Rules

Entry

  • Price should be below the Pivot Point (PP) or any Resistance level (R1, R2 or R3)
  • Price should touch the Pivot Point (PP) or Resistance level (R1, R2 or R3)
  • Price should bounce off it and cause the moving averages to crossover and print an arrow pointing down
  • Enter at the close of the candle with the arrow pointing down

Stop Loss

  • Set the stop loss a few pips above the high of the candle

Exit

  • Close the trade as the moving averages crossover signaling the end of the trend

Conclusion

Pivot Point reversal strategies are standalone strategies that many traders use. Fast moving average crossovers are also standalone strategies that traders use. However, as a standalone strategy, these strategies tend to have lower win ratios with higher reward-risk ratios. They could work as a standalone strategy, but by combining both strategies, we not only get the benefit of having high reward-risk ratios but also improve accuracy of our setups.


Forex Trading Systems Installation Instructions

2 MA Pivot Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

2 MA Pivot Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install 2 MA Pivot Forex Trading Strategy?
  • Download 2 MA Pivot Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select 2 MA Pivot Forex Trading Strategy
  • You will see 2 MA Pivot Forex Trading Strategy is available on your Chart
Click here below to download:

Save

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There are thousands of strategies available for traders. In fact, different traders have different strategies. Many of these strategies are readily available for traders to study and use. With the abundance of options available, many traders have been on a quest to find the “best” forex trading strategy. But how do we define the “best” forex trading strategy that work?

Well, the best trading is one which works for the individual trader and one that works appropriately for the market you are trading in.

Different traders have different tendencies and personalities. Some may prefer a relaxed type of trading while others prefer action. Others are keen on observing patterns while others prefer an algorithmic type of trading. There is no one size fits all type of trading strategy. It all depends on the personality of the trader and what fits him or her best.

Different markets and market conditions call for different types of trading strategies. It would be foolish to trade a trend following strategy on a range bound market. It also is not a good idea to trade a trend continuation strategy on a market that is clearly reversing. A trending strategy that works for a slowly rising trend may also not work for a trending market that presents deep retraces.

The key to profiting in the forex market is in identifying the market condition correctly and applying the right strategy for it. Below are different types of strategy all of which would work on the right market condition.

Here are our Top 5 Best Forex Trading Strategies That Work. #1 – Trend Magic RSI Forex Trading Strategy

Profitable strategies have one thing in common – confluence. Confluence simply means the “coming together” of several factors. In trading, you would often find scenarios or market conditions wherein several deciding factors, such as price action, candlestick patterns, indicators, etc., come together indicating the same trade direction. These are the kind of market conditions that usually produce high probability trade setups. Almost all, if not all, profitable strategies make use of confluences.

The Magic RSI Forex Trading Strategy is a strategy which provides trade entries based on a confluence of two complementary momentum indicators. This gives traders an opportunity to trade the market with a high probability trade setup, giving traders a higher chance of success.

Trend Magic Indicator

The Trend Magic indicator is a momentum indicator which shows traders the direction of the current trend.

It draws a line on the price chart which is colored depending on the direction of the trend. Blue lines drawn below price action indicates a bullish trend, while red lines drawn above price action indicates a bearish trend.

Trend reversals cause the Trend Magic indicator’s line to change color. These color changes could be used as an entry signal for a trend following strategy or trend reversal strategy.

RSI Filter

The Relative Strength Index (RSI) is a widely used technical indicator. It is an oscillating indicator which mimics the movement of price quite closely.

The RSI oscillates from 0 to 100 and has a midpoint at 50.

There are many ways to interpret the RSI. Traditionally, values above 70 are considered as overbought while values below 30 are considered as oversold. Mean Reversal traders would use these conditions to trade trend reversals based on the hypothesis that since price is overextended, price would likely reverse back to its mean.

However, there is another way of interpreting the RSI based on an opposing hypothesis. Momentum traders would interpret breaks out of the 30 to 70 range as an indication of a momentum breakout.

The RSI Filter is based on the momentum hypothesis of the RSI indicator. The RSI filter would print positive bars on bullish momentum and negative bars on bearish momentum. This helps traders anticipate momentum breakouts and reversals based on the signals provided by the indicator.

The Forex Trading Strategy

Confluences based on technical indicators are one of the most popular ways to trade the forex market. It causes traders to trade based on rules instead of gambling based on their intuition. This lessens the influence of emotions such as fear and greed to affect their trading decisions, thereby allowing them to have consistency on their trades.

The Trend Magic RSI Forex Trading Strategy is a trend reversal strategy which trades on the confluence of trend reversal signals based on the Trend Magic indicator and the RSI Filter.

The Trend Magic indicator is trend reversal indicator which shows exact reversal points based on the changing of its color. The RSI Filter on the other hand also indicates trend reversals, however these trend reversals are based on shifts in momentum.

Both indicators provide trend reversal signals independently as a standalone indicator, with a relatively high degree of accuracy. However, whenever the two indicators signal a trend reversal at almost the same time, the likelihood of the trend reversing becomes significantly higher. This is because the trend reversal signals have momentum behind it.

These indicators would usually provide confluences only when there is a strong momentum candle going against the current trend. This would also usually coincide with breakouts from supports or resistances.

MT4 Indicators
  • Trend Magic.ex4 (default settings)
  • Flat Trend RSI.ex4 (default settings)

Preferred Timeframe: 15-minute, 1-hour, 4-hour and daily charts

Currency Pairs: major and minor pairs

Trading Session: Tokyo, London and New York sessions; trade on the session of the currency pair being traded if trading on the lower timeframes

Buy Trade Setup

Entry

  • Price should cross above the Trend Magic indicator line
  • A bullish momentum candle should be observable
  • The Trend Magic indicator should change to color blue indicating bullish trend reversal
  • The RSI Filter should change from printing negative bars to positive bars indicating a bullish trend reversal based on momentum
  • These bullish trend reversal signals should be closely aligned
  • Enter a buy order on the confluence of the above conditions

Stop Loss

  • Set the stop loss on the support level below the entry candle

Exit

  • Close the trade as soon as the Trend Magic indicator line changes to red
  • Close the trade as soon as the RSI Filter bars becomes negative

Sell Trade Setup

Entry

  • Price should cross below the Trend Magic indicator line
  • A bearish momentum candle should be observable
  • The Trend Magic indicator should change to color red indicating bearish trend reversal
  • The RSI Filter should change from printing positive bars to negative bars indicating a brearish trend reversal based on momentum
  • These bearish trend reversal signals should be closely aligned
  • Enter a sell order on the confluence of the above conditions

Stop Loss

  • Set the stop loss on the resistance level above the entry candle

Exit

  • Close the trade as soon as the Trend Magic indicator line changes to blue
  • Close the trade as soon as the RSI Filter bars becomes positive

Conclusion

This strategy is a great trend reversal strategy. It combines the confluence of two trend indicators while taking in account the momentum which caused the trend reversal.

This strategy requires that the trader understand price action. This is because the entries produced by this strategy work best when a momentum candle is identified. It is even better if trend reversal patterns are also observed prior to the entry.

Traders should also learn to properly manage trades by moving stop losses to breakeven when possible and trailing the stop loss at an ideal distance. This increases the trader’s win ratio and it also protects profits from being given back to the market.

Trading this strategy with intelligent technical analysis should produce good results for traders.

#2 – Stochastic Cross Reversal Forex Trading Strategy

Most traders often make the mistake of running after anything that glows in the quest of finding the “Holy Grail” of trading. Whether it is a new indicator or whatnot, traders would often try something new every now and then.

Now, there is nothing wrong with that. It is great to try perfecting your skill in trading, and this includes learning. Where traders often go wrong is when their strategies get overcomplicated. They pile in a bunch of indicators thinking that more is better. In some cases, it does work. However, for most traders, too much information could mean too much noise. This causes them to freeze whenever a trading opportunity comes.

Sometimes, the best strategies are those that are simple. Basic indicators are still widely used even by professional technical analysts and traders. Even big bank traders use the old school indicators that are readily available for retail traders.

The Stochastic Cross Reversal Forex Trading Strategy is one of the strategies that are based on a basic indicator. Although the indicators used have been modified to make things much easier for traders, the basic principles behind it remains the same.

Stochastic Cross Alert

The Stochastic Oscillators is one of the most basic technical indicators that traders use. This indicator was developed by Dr. George Lane back in the late 1950s. Even though this indicator seems pretty archaic, many professional traders know for a fact that it does work. In fact, this is one of my favorite “basic” indicators.

The Stochastic Oscillator is a momentum oscillating indicator. It plots two lines which oscillate from 0 to 100. One line oscillates faster than the other. The trend is considered bullish whenever the faster line is above the slower line. On the other hand, the trend is considered bearish whenever the faster line is below the slower line. Trends are reversing whenever the two lines crossover each other.

Where the lines crossover within the range is also important. The market is considered oversold whenever the two lines are below 20 and overbought whenever the two lines are above 80. Markets which are oversold have a strong tendency to reverse bullishly, while overbought markets have a high probability of reversing down. Crossovers taking place beyond these areas have a higher probability of resulting in a reversal compared to crossovers that occur randomly within the normal range.

The Stochastic Cross Alert indicator simplifies all this for traders. Knowing that these types of crossovers do work, the indicator simply provides signals whenever the lines crossover by printing an arrow on the chart pointing towards the direction of its indicated trend.

SEFC084 Bulls Bears Indicator

The SEFC084 Bulls Bears indicator is a trend following indicator which aids traders in identifying the current trend direction. It does this by printing bars which could either be positive or negative. Positive bars indicate a bullish market bias while negative bars indicate a bearish market bias. Bars shifting from positive to negative or vice versa is considered a trend reversal signal based on this indicator.

The Forex Trading Strategy

The Stochastic Cross Reversal Forex Trading Strategy is a trend reversal strategy which makes use of the potential reversals provided by the Stochastic Cross Alert indicator.

These signals start from an overextended market condition, either overbought or oversold. Mean reversal traders usually take this signal hoping that price would revert back to the mean. However, there are many cases wherein price would do more than just reverting back to the mean. It often results to the start of a fresh trend.

This strategy takes these signals in confluence with the SEFC084 Bulls Bears indicator and rides these new trends up to the end. The key to this strategy is in finding a strong confluence between the Stochastic Cross Alert indicator and the SEFC Bulls Bears indicator. Trend reversal signals which are generated at almost the same time have a very high probability of resulting in a trend. This is because this would usually happen only when there is momentum behind the reversal.

MT4 Indicators
  • Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4
    • KPeriod: 30
    • DPeriod: 12
    • Slowing: 18
  • ex4
    • Period: 42

Preferred Time Frames: 15-minute, 30-minute, 1-hour, 4-hour and daily charts

Currency Pairs: major and minor pairs

Trading Session: Tokyo, London and New York; trade on the session of the currency pair traded when trading on the lower timeframes

Buy Trade Setup

Entry

  • The SEFC084 Bulls Bears indicator should shift from negative to positive indicating bullish trend reversal.
  • The Stochastic Cross Alert indicator should print an arrow pointing up indicating bullish trend reversal signal.
  • These bullish trend reversal signals should be closely aligned.
  • Enter a buy order on the confluence of the above conditions.

Stop Loss

  • Set the stop loss on the support level below the entry candle.

Exit

  • Close the trade as soon as the SEFC084 Bulls Bears indicator becomes negative.
  • Close the trade as soon as the Stochastic Cross Alert indicator prints an arrow pointing down.

Sell Trade Setup

Entry

  • The SEFC084 Bulls Bears indicator should shift from positive to negative indicating bearish trend reversal.
  • The Stochastic Cross Alert indicator should print an arrow pointing down indicating bearish trend reversal signal.
  • These bearish trend reversal signals should be closely aligned.
  • Enter a sell order on the confluence of the above conditions.

Stop Loss

  • Set the stop loss on the resistance level above the entry candle.

Exit

  • Close the trade as soon as the SEFC084 Bulls Bears indicator becomes positive.
  • Close the trade as soon as the Stochastic Cross Alert indicator prints an arrow pointing up.

Conclusion

Trading on trend reversals with momentum on an overbought or oversold condition is one of the best trading strategies. It has a high probability of resulting in a new trend thus allowing for a higher reward-risk ratio with a decent win rate.

This strategy does that. It provides trend reversal signals based on the Stochastic Oscillator and ensures that the signal has momentum based on the signal’s confluence with the SEFC084 Bulls Bears indicator.

This strategy works well. However, it is best to incorporate some price action technical analysis with this strategy. Trading on reversal signals and breaks from a support or resistance could produce good results.

#3 – Squeeze Break Retracement Forex Trading Strategy

One of the types of market that traders are often presented with is a trending market condition. In fact, seasoned traders would often be looking for these types of market condition. Others even trade exclusively during trending markets and avoid trading during ranging markets. Knowing that, it is important that traders have a strategy to exploit trending market conditions.

Trending markets are usually much easier to trade compared to ranging markets. This is the reason why most traders love trading during trending markets. Trade direction is much easier to decipher whenever the trend is clear. This significantly increases the probability of a winning trade.

However, even though trending markets is theoretically much easier than other market conditions, many traders still find it difficult to trade profitably on a trending market. This is probably because most traders try to chase price instead of letting price go back for them.

The market consists of two phases, contraction and expansion phase. These phases are much more observable during trending markets. The market would rapidly rally to the direction of the trend, then suddenly the rally pauses. Volume and volatility go down and the market seems to have stopped moving. Then, volume and volatility suddenly spike, and the market starts to rally again to the direction of the trend. This is what typically happens during a trending market, the market expands and contracts again and again for a few times.

Traders who “chase” price usually trade during expansion phases. However, astute traders know that it is best to trade during contraction phases. It allows them to enter the market at a better price right before the market starts to rally.

The Squeeze Break Retracement Forex Trading Strategy trades on these contraction phases. It makes use of indicators that are specifically developed to detect these market phases.

sMAMA Indicator

The sMAMA indicator is a trend following indicating which is basically a customized adaptive moving average. The concept of an adaptive moving average was first introduced by John Ehler. He uses the MAMA and the FAMA moving averages, which has worked well. The sMAMA is based on these moving averages.

The sMAMA draws two lines, one being faster than the other. The faster line is colored blue while the slower line is colored red. The trend is interpreted as bullish whenever the blue line is above the red line. On the other hand, the market is considered bearish whenever the blue line is below the red line. Trend reversal signals are generated whenever the two lines crossover.

Squeeze Break Indicator

The Squeeze Break indicator is based on the John Carter’s strategy mentioned in his book, Mastering the Trade.

In his strategy, John Carter considers a market to be on a contraction phase whenever the Bollinger Bands are squeezed inside the Keltner Channels. He also considers the market to be on an expansion phase whenever the Bollinger Bands break out of the Keltner Channels. This idea is very logical since the Bollinger Bands have outer lines which are specifically designed to respond to volatility. These lines expand during a contraction phase and contract during a contraction phase. The Keltner Channels on the other hand is less responsive to volatility compared to the Bollinger Bands. This makes using the two indicators in this manner very ideal for detecting expansion and contraction phases.

The Squeeze Break indicator displays expansion and contraction through histogram bars. Long positive bars indicate that the Bollinger Bands have broken out of the Keltner Channel, indicating that the market is on an expansion phase. Negative bars are printed when the Bollinger Bands have contracted inside the Keltner Channel, which indicates that the market has already contracted.

The Squeeze Break indicator also has a blue oscillating line which mimics the movement of price. This line is used to indicate trend direction. The trend is considered bearish when the line is below zero and bullish when the line is above zero. Crossovers on the zero mark indicate a trend reversal signal.

The Forex Trading Strategy

This strategy trades..

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Wave Rider Forex Trading Strategy

One of the best ways to trade the forex market is by riding a trending market. This is because trading with the trend also means you are trading with less headwinds. Much of the market is trading going your direction and only a few are trading against it up until a very strong reversal signal occurs on a strong support or resistance.

Although many traders know that trading with the trend is the way to go, many find it hard to trade this way. This is primarily because they find it hard to identify trends.

Using Moving Averages to Identify Trend Directions

There are many ways to identify trends. Seasoned price action traders determine trend by price action’s swing highs and lows. But doing it this way makes identifying trends to subjective. Other traders use a plethora of trading indicators. Some are great while some pretty much just fails. However, one of the best ways to identify trend might be right under our noses. It is the use of our good old trusted moving average indicator.

When you come to think of it, moving averages in itself is a great tool to identify trends individually. Being a moving average, you would know if price’s bias is upward or downward just by identifying if the current price is higher or lower than the average. If price is constantly higher, then price must also be constantly going up, and vice versa.

So, individually moving averages could work. But what if we use a whole bunch of them. This would further increase the probability that we get our trend direction right. By using several commonly used moving averages that are commonly used to identify trend, we could easily decide which way the trend is just by looking at the chart.

The key to identifying trends via multiple moving averages is on whether they are stacked or not, and in which order. Shorter period moving averages layered above longer period moving averages means the trend is bullish. If the stack is the reverse of that, then the trend is bearish.

The Carter MA

The Carter MA indicator is an indicator comprised of several Exponential Moving Averages (EMA), all of which are commonly used by traders. It is comprised of the 8, 21, 50, 100, & 200 EMA. The 8-period EMA is already quite too fast causing a whipsaw on the EMAs. We could identify trends on whether the 21, 50, 100 & 200 EMAs are stacked correctly.

Below is an example of a chart with a stacked EMA with the 21 on top and the 200 at the bottom. This shows how easy it is to identify trends via moving averages.

Next, a sample of a bearish trend. Notice how the stack of moving averages is upside-down.

Trading Strategy Concept

Knowing that we have our trend direction pretty much nailed spot on, all we need to do is have a decent entry signal indicator.

For this strategy, we will combine the Carter MA indicator with the binaryarrows indicator, which identifies logical entries via fractals.

Timeframe: any timeframe

Currency Pair: any, preferably major pairs when scalping or day trading

Session: swing trade could be any session, while day trading and scalping should be the session of the currency being traded (Ex: GBPUSD – London or New York session)

Buy Trade Setup

Entry

  • EMAs should be stacked in the following order:
    • 21 EMA (green): top
    • 50 EMA (blue): 2nd from top
    • 100 EMA (dashed red): 2nd from bottom
    • 200 EMA (solid red): bottom
  • Enter a buy market order on the close of the candle when the aqua upward arrow of the binaryarrows indicator appears

Stop Loss

  • Set the stop loss below the arrow

Exit

  • Close the trade at the close of the candle when the red downward arrow of the binaryarrows indicator appears

Sell Trade Setup

Entry

  • EMAs should be stacked in the following order:
    • 21 EMA (green): bottom
    • 50 EMA (blue): 2nd from bottom
    • 100 EMA (dashed red): 2nd from top
    • 200 EMA (solid red): top
  • Enter a buy market order on the close of the candle when the red downward arrow of the binaryarrows indicator appears

Stop Loss

  • Set the stop loss above the arrow

Exit

  • Close the trade at the close of the candle when the aqua upward arrow of the binaryarrows indicator appears

Conclusion

Trading based on whether the commonly used moving averages are pointing the same direction greatly increases the probability of a successful trade. The only thing you would have to worry about is the entry. While the binaryarrows is visually great at identifying highs and lows, trying to catch a high or low is a bit tricky, especially when using fractals alone. This is why it is important to trade at the close of the candle or better to add an additional confirmation via reversal candlestick patterns.


Forex Trading Systems Installation Instructions

Wave Rider Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

Wave Rider Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

Forex Strategies & Forex MT4 Indicators Installation Instructions - YouTube

Forex Metatrader 4 Trading Platform
  • Free $30 To Start Trading Instantly
  • No Deposit Required
  • Automatically Credited To Your Account
  • No Hidden Terms

How to install Wave Rider Forex Trading Strategy?
  • Download Wave Rider Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select Wave Rider Forex Trading Strategy
  • You will see Wave Rider Forex Trading Strategy is available on your Chart
Click here below to download:

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La entrada Wave Rider Forex Trading Strategy se publicó primero en Forex MT4 Indicators.

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