ASC Trend Catcher Forex Strategy

Just as the name suggests, the ASC Trend Catcher Forex strategy is a trend following strategy that deploys very simple indicators that help market participants to make buy/sell trade decisions with ease.

The strategy fits with any currency pair chart and is applicable to any timeframe.

However, the strategy won’t do anything for you if you do not follow the setup rules of the system with dedication.

Inputting the right parameter settings will ensure trading profitability.

Let’s look at how things will play out in line with the correct indicator settings.

Chart Setup

MetaTrader4 Indicators: asc-trend-indicator-2.ex4 (Inputs Variable Modified; RISK=15, CountBars=300000, Colors Width Modified; #0=4, #1=4), skdon-trend-indicator.ex4 (Inputs Variable Modified; MaMetod=2, MaPeriod=24), stlm-histograms.ex4 (Inputs Variable Modified; CountBars=30000000)

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

Download

Download the ASC Trend Catcher Forex Strategy

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 asc-trend-indicator-2 forms aqua bars on the activity chart as indicated on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to go long on the designated currency pair.
  2. If the blue upward pointing arrow of the skdon-trend-indicator pops up somewhat below the price bars as seen on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy order will suffice.
  3. If the green & red histograms of the stlm-histograms Metatrader 4 custom indicator stay above the 0.00 horizontal signal level (see Fig. 1.0), price is said to be driven to the upside, thus a trigger to buy the selected forex pair.

Stop Loss for Buy Entry: Place stop loss below 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 asc-trend-indicator-2.ex4pops up a magenta bar during the course of a bullish trend, it is an indication of weaning bulls power, hence an exit or take profit will suffice.
  2. If the skdon-trend-indicator.ex4displays a red downward pointing arrow while a bullish trend is running, it is signaling a possible bearish reversal i.e. an alert to exit or take profit at once.
  3. If the stlm-histograms.ex4indicator displays a red histogram that stays below the zero horizontal reference level as exemplified on Fig. 1.0, it is a trigger to exit or take profit forthwith.

Sell Entry Rules

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

  1. If the asc-trend-indicator-2.ex4forms magenta bars on the activity chart as seen on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the currency pair of interest.
  2. If the red downward pointing arrow of the skdon-trend-indicator.ex4pops up slightly above the price bars (refer to Fig. 1.1), the general market sentiment is said to be bearish, and therefore a sell order will do.
  3. If the red & green histograms of the stlm-histograms.ex4 indicatorstay below the 0.00 horizontal reference level (check Fig. 1.1), price is said to be driven to the downside, thus a trigger to sell the designated forex pair.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the asc-trend-indicator-2.ex4pops up an aqua bar while a bearish trend is ongoing, it is an indication of halting bears power, hence an exit or take profit will do.
  2. If the skdon-trend-indicator.ex4displays a blue upward pointing arrow during a bearish trend, it is warning against a likely bullish reversal, hence an exit or take profit is duly recommended.
  3. If the stlm-histograms.ex4 indicatordisplays a green histogram that is aligned above the zero horizontal reference level as illustrated on Fig. 1.1, traders are advised to warm up for a possible exit or take profit stance.

Sell Trade Example

Fig. 1.1

Free Download

Download the ASC Trend Catcher Forex Strategy

About The Trading Indicators

The asc-trend-indicator-2.ex4 is a trend following indicator that uses aqua or magenta bars to define buy and sell signals respectively.

The skdon-trend-indicator.ex4 is a technical studies that allows traders pick the market at the very beginning of a new trend and also allows you exit before the market turns at the bottom.

The stlm-histograms.ex4 is a custom indicator that shows the overall market trend and its turning point.

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