4 MA Strength Forex Trading Strategy

The 4 MA Strength Forex trading strategy is reliant on trading pullbacks in a trending market.

The strategy is designed to fully combine the strength of the prevalent trend that’s being traded together with its overbought or oversold price characteristics.

You can use lower timeframes ( M1, M5, M15) but the higher timeframes (H1, H4) are my favorite ones for trading this strategy.

Any currency pair is allowed with this strategy but I prefer the more volatile ones such as EUR/JPY, EUR/USD, GBP/JPY, EUR/AUD and GBP/USD.

Chart Setup

MetaTrader4 Indicators: 4-ma-strength-indicator.ex4 (Inputs Variable Modified; ShowDays=22000), admi-trading-signals.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:

  1. If the lime vertical bars of the 4-ma-strength-indicator Metatrader 4 forex indicator gets stacked up above the 0.00 (see Fig. 1.0), price is said to be pressured higher, as such a trigger to go long is apt.
  2. If the green yellow upward pointing arrow of the admi-trading-signals indicator gets positioned somewhat below the candlesticks as depicted on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the designated forex pair.

Stop Loss for Buy Entry: Place stop loss below the most recent support level.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If the 4-ma-strength-indicator pops up a medium violet red vertical bar that is aligned below the 0.00 signal line while a bullish trend is ongoing, bearish reversal is said to be looming, as such an exit or take profit is duly advised.
  2. If the admi-trading-signals indicator pops up an Indian red downward pointing arrow during a bullish signal as exemplified on Fig. 1.0, more bulls are said to be exiting the market, as such an exit or take profit will suffice.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

  1. If the medium violet red vertical bars of the 4-ma-strength-indicator Metatrader 4 forex indicator gets stacked below the 0.00 as depicted on Fig. 1.1, price is said to be pushed lower, hence a trigger to go short on the currency pair of focus.
  2. If the Indian red downward pointing arrow of the admi-trading-signals indicator gets aligned above the price bars (refer to Fig. 1.1), the general market sentiment is said to be bearish i.e. a trigger to go short on the selected currency pair.

Stop Loss for Sell Entry: Place stop loss above the most recent resistance level.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the 4-ma-strength-indicator pops up a lime vertical bar that takes up space above the 0.00 signal level while a bearish trend is running, bullish reversal is said to be imminent, as such an exit or take profit is duly recommended.
  2. If the admi-trading-signals indicator pops up a green yellow upward pointing arrow while a bearish trend is ongoing (check Fig. 1.1), more bears are said to be exiting the market, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The 4-ma-strength-indicator.ex4 is a metatrader 4 indicator that can adequately define the strength of the market.

When its vertical bars crosses the 0.3 and -0.3 level, it is indicative of an overbought and oversold market condition respectively.

The admi-trading-signals.ex4 indicator is an Average Directional Movement Index Metatrader 4 custom indicator that reveals the ratio of the ADX lines.

It can be deployed to determine the strength/direction of the currency market.

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