Trading in the currency market can be a fairly difficult task depending on the strategy that you deploy in generating profits.
It becomes even more strenuous when considering the amount of time needed to set things up, as well as the ever present complex indicators.
However, the 10 Minute Trader Forex Countertrend strategy is a pretty modest strategy that only requires you to use three indicators.
The 10 Minute Trader Forex strategy scans for a countertrend reversal trade but will only take a chance on it when momentum supports the reversal.
Exploring the examples below will allows us understand these momentum-based reversal moves.
Chart Setup
MetaTrader4 Indicators: 10-minute-trader.ex4 (Default Setting), ahoora-indicator.ex4 (Default Setting), cci-histograms.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the hot pink colored upward pointing arrow of the 10-minute-trader Metatrader 4 custom indicator gets aligned below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated currency pair.
- If the lime line of the ahoora-indicator gets aligned fairly below the candlesticks as seen on Fig. 1.0, the general market sentiment is said to be bullish, as such a buy order will suffice.
- If the maroon line plus dark gray and royal blue histograms of the cci-histograms indicator stay above the 0.00 level as depicted on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the stipulated forex pair.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the hot pink downward pointing arrow of the 10-minute-trader indicator pops up above the candlesticks during a buy signal as indicated on Fig. 1.0, bullish sentiment is said to be weaning, as such an exit or take profit will suffice.
- If the ahoora-indicator line changes to khaki while a buy signal is ongoing, bulls power is said to be losing steam, as such an exit or take profit will suffice.
- If the maroon line of the cci-histograms indicator break below the 0.00 center line during a bullish signal, more bulls are said to be leaving the market, hence a trigger to exit or take profit at once.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the hot pink downward pointing arrow of the 10-minute-trader indicator gets aligned above the price bar as seen on Fig. 1.1, price is said to be pressured downwards i.e. a trigger to go short on the currency pair of interest.
- If the red line of the ahoora-indicator gets aligned slightly above the candlesticks as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, as such a sell order will do.
- If the maroon line plus dark gray and red histograms of the cci-histograms indicator hover below the 0.00 center level as portrayed on Fig. 1.1, price is said to be hammered lower, hence a sell order is appropriate.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the hot pink upward pointing arrow of the 10-minute-trader indicator pops up below the candlesticks during a sell signal as indicated on Fig. 1.1, bearish sentiment is said to be halting, as such an exit or take profit will do.
- If the ahoora-indicator line changes to khaki during a sell signal, bears power is said to be losing momentum, hence a trigger to exit or take profit at once.
- If the maroon line of the cci-histograms indicator surges above the 0.00 center line during a bearish signal, more bears are said to be closing their positions, hence a trigger to exit or take profit immediately.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The 10-minute-trader.ex4 custom indicator is a non-painting technical tool that is used to spot reversal patterns.
The cci-histograms.ex4 indicator is a momentum indicator that is based on a number of patterns made by the Commodity Channel Index (CCI) indicator.
The ahoora-indicator.ex4 is a technical indicator that combines 3 trend showing indicators i.e. EMA, RSI and the ATR.
It can be used for scalping and long-term swing trading.