3 Bar Stop Loss Forex System
Trading requires mental toughness and self-control in order to stick to your pre-configured rules.
In the heat of passion, the underlying thing that distinguishes long-term winners from losers is the ability to accurately stick to predetermined rules.
The 3 Bar Stop Loss Forex System is a valid profit taking strategy that does not expose you to unnecessary risks when you follow its trading rules.
By using a set of indicators that allows you plan your trade ahead and figures out your next line of action in every possible scenario.
MetaTrader4 Indicators: 3-bar-stop-loss-indicator.ex4 (Inputs Variable Modified; MaxBar=200000, TrendEMAPeriod=8), kg-wave-minor.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 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 line color of the 3-bar-stop-loss-indicator Metatrader 4 custom indicator changes to blue as illustrated on Fig. 1.0, it is an indication of an impending bullish trend, as such a buy order is highly recommended.
- If the blue & red histograms of the kg-wave-minor Metatrader 4 custom indicator floats above the 0.00 signal level as shown on Fig. 1.0, price is said to be dragged higher i.e. a trigger to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below medium-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 line of the 3-bar-stop-loss-indicator pops up a red colored line section as denoted on Fig. 1.0 during a bullish trend, bullish pressure is therefore said to be weaning, as such an exit or take profit will suffice.
- If the kg-wave-minor custom indicator pops up a red histogram that’s positioned below the zero signal level, it is signaling diminishing bulls power, hence 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 line color of the 3-bar-stop-loss-indicator Metatrader 4 forex indicator changes to red as exemplified on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the currency pair of focus.
- If the red & blue histograms of the kg-wave-minor Metatrader 4 custom indicator hangs below the 0.00 center line as illustrated on Fig. 1.1, price is said to be pushed lower, thus prompting a probable sell trigger within the forex pair of interest.
Stop Loss for Sell Entry: Place stop loss above medium-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the line of the 3-bar-stop-loss-indicator pops up a blue colored line section as designated on Fig. 1.1, bearish market sentiment is said to be losing steam, hence an exit or take profit is duly recommended.
- If the kg-wave-minor custom indicator pops up a blue histogram that’s aligned above the zero reference level, a probable bullish reversal is said to be on the horizon, hence an exit or take profit is advised.
Sell Trade Example
About The Trading Indicators
The 3-bar-stop-loss-indicator.ex4 is a technical tool that is built on price action patterns. The indicator appears like a channel comprising of a bold unbroken line, along with a thinner dotted line.
The kg-wave-minor.ex4 indicator is an oscillator that is designed to show off its colored (red & blue) histograms either above or below the zero reference line, in a manner that depicts bullish or bearish market sentiments respectively.