Drive Forex Trading Strategy

If you’re looking for a scalping strategy that works, then I’ll advice you tryout the Drive forex trading strategy. The strategy combines two key technical indicators i.e. the Drive and EMA crossover signal custom indicators, both very effective tools that can be deployed when scalping the forex market.

Chart Setup

MetaTrader4 Indicators: Drive.ex4 (default setting), EMA-Crossover_Signal.ex4 (inputs value modified)

Preferred Time Frame(s): 1-Minute, 5-Minutes

Recommended Trading Sessions: London, New York

Currency Pairs: Any pair

Download

Download the Drive Forex Trading Strategy

Buy Trade Example (Click the image for full view)

drive-forex-trading-strategy

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following conditions or rules are met:

  1. If the green upward pointing arrow of the EMA-Crossover_Signal.ex4 indicator forms below price bars, it is an indication that price is pressured higher, which implies a bullish trend.
  2. If the green line of the Drive custom indicator breaks above the 2.2656 level, it is a signal that price is being pushed higher i.e. a bullish signal.

Stop Loss for Buy Entry: Place stop loss ~ 8 – 15 pips below entry price.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following chart or indicator patterns are in display:

  1. If a red downward pointing arrow of the EMA-Crossover_Signal.ex4 custom indicator forms above price bars, it is an indication that the current trend is about to reverse, which in turns is an exit or take profit trigger.
  2. If the green line of the Drive custom indicator crosses the red line downwards or breaks below the 2.2656 level, it is a sign that upward momentum is weaning, hence an exit or take profit is well suited.

Sell Entry Rules

Enter a sell order if the following conditions or rules are met:

  1. If a red downward pointing arrow of the EMA-Crossover_Signal.ex4 custom indicator forms above price bars, it is a sign of downward price pressures, as such an eminent sell is in order.
  2. As shown on Fig. 1.1, if the green line of the Drive custom indicator breaks below the 2.2656 level, price is said to be bearish.

Stop Loss for Sell Entry: Place stop loss ~ 8 – 15 pips above entry price.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following chart or indicator patterns are in display:

  1. If the EMA-Crossover_Signal.ex4 custom indicator forms a green upward pointing arrow that is aligned below price bars, it is a trigger to exit or take profit on position(s).
  2. If the green line of the Drive custom indicator crosses the red line upwards as shown on Fig. 1.1 or breaks above the 2.2656 mid-point level of the indicator (as was the case in Fig. 1.1), it is a call to exit or take profit on position(s).

drive-forex-trading-system

Fig. 1.1

Free Download

Download the Drive Forex Trading Strategy

About The Trading Indicators

The Drive.ex4 custom indicator is a trend reversal signal indicator. If the red and the green line intersect, it is an indication that trend is about to change.

The indicator has a fixed minimum of 1.0328 and a fixed maximum of 3.7484. In understanding the indicator, we drew a mid-point at the 2.2656 level and price is bullish is the green line breaks above this line and bearish if it breaks below this level.

The EMA-Crossover_Signal.ex4 indicator on the other hand is a trend seeking indicator built on the crossover of two exponential moving averages.

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