4 MA’S Trend Forex Strategy

The 4 MA’S Trend Forex strategy is used to exploit the best swing market trends.

It deploys a combination of a moving average variant and a channel indicator to maximize gains from the various trends in the forex market.

At the same time, the strategy aims to keep drawdowns to a minimum.

Although the 4 MA’S Trend Forex trading strategy works great on all timeframes, it is best suited for the 1-Hour timeframe and higher, thereby making it highly fit for swing traders.

With a modest amount of account balance, this strategy is designed to consistently offer excellent risk/reward opportunities.

Winning trade setups will always outnumber and outpace losing trades.

Let see how it all plays out.

Chart Setup

MetaTrader4 Indicators: 4mas-trend-indicator.ex4 (Default Setting), keltner-channel-with-signals.ex4 (Inputs Variable Modified; MA_PERIOD=2)

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 green vertical bars of the 4mas-trend-indicator pops up within the indicator window as illustrated on Fig. 1.0 price is said to be driven higher i.e. a trigger to buy the designated currency pair.
  2. If the blue star signal of the keltner-channel-with-signals indicator pops up slightly below the candlesticks as depicted on Fig. 1.0, price is said to be pressured to the upside, hence a trigger to go long on the selected currency pair will suffice.

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:

1 If the 4mas-trend-indicator Metatrader 4 forex indicator pops up a red vertical bar while a bullish trend is ongoing, price is said to be making a probable U-turn, as such an exit or take profit will do.

  1. If the keltner-channel-with-signals indicator pops up a saddle brown star that is aligned somewhat above the candlesticks (see Fig. 1.0), price is said to be making a possible bearish reversal, hence an exit or take profit is recommended.

Sell Entry Rules

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

  1. If the red vertical bars of the 4mas-trend-indicator pops up within the indicator window as depicted on Fig. 1.1, price is said to be pressured lower i.e. a trigger to sell the selected fx pair.
  2. If the saddle brown star signal of the keltner-channel-with-signals indicator pops up fairly above the price bars (refer to Fig. 1.1), the overall sentiment is said to be bearish i.e. a trigger to go short on the currency pair of focus.

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:

1 If the 4mas-trend-indicator pops up a lime green vertical bar while a bearish trend is running, bears power is said to be weaning, hence a trigger to exit or take profit at once.

  1. If the keltner-channel-with-signals indicator puts on display a blue star that is positioned slightly below the price bars as illustrated on Fig. 1.1, bearish momentum is said to be halting, hence an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The 4mas-trend-indicator is a non-repainting technical tool that is based on the relationship between four moving averages.

The keltner-channel-with-signals indicator on the other hand is a volatility-based envelopes that are aligned above and below an exponential moving average.

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