Large psychologically significant numbers like “100” tend to attract a lot of forex traders.
There’s a huge allure to these sort of numbers and this is exactly what this strategy exploits.
You don’t need to be a market guru in order to use this strategy as it is perfect for beginners and people with day jobs.
The 100 Pips forex trading strategy is an incredibly simple yet effective trading system that targets 100 pips.
The goal is to stay in the market for as long as possible to attain the desired 100 pips profit but there will be times where reaching such targets becomes unrealistic.
However, this strategy is designed to allow currency traders exit positions with their heads tall.
MetaTrader4 Indicators: 100-pips-indikator.ex4 (Default Setting), 36 EMA, Momentum_Histo.ex4 (Inputs Variable Modified; Indicator Period=50)
Preferred Time Frame(s): 1-Hour, 4-Hours, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the magenta 36 EMA indicator line intersects the 100-pips-indikator.ex4Metatrader 4 custom indicator lines (blue & red) in a bottom up manner as depicted on Fig. 1,0, price is said to be pushed to the upside i.e. a trigger to buy the designated currency pair.
- If the green histograms of the Momentum_Histo.ex4indicator gets stacked above the 0.00 level as illustrated on Fig. 1.0, price is said to be pressured higher i.e. a trigger to go long on the forex pair of focus.
Stop Loss for Buy Entry: Place stop loss below long-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 magenta 36 EMA indicator line intersects the blue & red 100-pips-indikator.ex4lines while a bullish trend is running, price is said to be losing its bullish momentum, as such an exit or take profit will suffice.
- If the Momentum_Histo.ex4custom indicator pops up a red histogram that is aligned below the 0.00 center line (see Fig. 1.0), the market is said to be shedding off more bulls, seemingly, an exit or take profit will do.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the magenta 36 EMA indicator line intersects the 100-pips-indikator.ex4lines (blue & red) in a top downward fashion as exemplified on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the selected forex pair.
- If the red histograms of the Momentum_Histo.ex4indicator gets aligned below the 0.00 center line as seen on Fig. 1.1, price is said to be driven lower i.e. a trigger to go short on the forex pair of interest.
Stop Loss for Sell Entry: Place stop loss above long-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the magenta 36 EMA indicator line intersects the blue & red 100-pips-indikator lines while a bearish trend is ongoing, bears power is said to be halting, hence a trigger to exit or take profit immediately.
- If the Momentum_Histo.ex4custom indicator pops up a green histogram that is aligned above the 0.00 center line (refer to Fig. 1.1), more bears are said to be closing their positions, hence a trigger to exit or take profit at once.
Sell Trade Example
About The Trading Indicators
The 100-pips-indikator.ex4 offers traders the ability to easily enter and exit trades.
The indicator is essentially made up of four technical studies with the ATR volatility indicator.
The 36 EMA is an exponential moving average that has its period set at 36 and reduces the lag by adding more weight to recent price.
The Momentum_Histo.ex4 is a technical indicator that applies the CCI or RSI on price in order to gauge the momentum of the currency pair’s price over a specified period of time.