There are different reasons to why we trade currencies online, but making profits seems to steer us all.
The Candle Histogram forex trading strategy is a well-thought out profit spinning strategy that requires little or no expertise to implement on your trading plan.
Learn and download this strategy below:
MetaTrader4 Indicators: CCI-Histogram.ex4 (Default Setting), CandleStop.ex4 (Inputs Variable Modified; TrailPeriods=10), 24 EMA
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets displayed:
- If price close above the 24 EMA line and the lime line of the CandleStop.ex4 custom MT4 indicator as shown on Fig. 1.0, the sentiment in the market is believed to be somewhat bullish, i.e. a trigger to buy the stipulated forex pair.
- If the maroon line and the histograms (Dark Gray & Royal Blue) of the CCI-Histogram custom indicator breaks and stays above the 0.00 level as indicated on Fig. 1.0, price is said to be taken higher, hence a buy trigger is imminent.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If price dips to close below the red 24 EMA line (refer to Fig. 1.0) while a buy trend is running, the bullish sentiment is said to be losing steam, as such an exit or take profit will suffice.
- If the maroon line of the CCI-Histogram custom indicator falls below the 0.00 level during an ongoing buy signal, it is wise to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If price close below the 24 EMA line and the magenta line of the CandleStop.ex4 custom MT4 indicator as seen on Fig. 1.1, the sentiment in the market is believed to be fairly bearish, i.e. a trigger to sell the stipulated currency pair.
- If the maroon line and the histograms (Dark Gray & Red) of the CCI-Histogram custom indicator declines and stays below the 0.00 level as shown on Fig. 1.1, price is said to be taken lower, hence a sell trigger is in the offing.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price rises to close above the red 24 EMA line as illustrated on Fig. 1.1 while a sell signal is running, the bearish market sentiment is said to be losing steam, as such an exit or take profit will do.
- If the maroon line of the CCI-Histogram custom indicator rises to break above the 0.00 level during a sell alert, it is wise to exit or take profit without delay.
Sell Trade Example
About The Trading Indicators
The CCI_Histogram.ex4 is one of the variant of the Commodity Channel Index (CCI) that gauges the current price level in relation to a mean price level over a specified time period.
The CandleStop.ex4 is a chart pattern indicator that is comprised of two dotted lines channel (magenta and lime colored dotted lines).
Price is said to be bullish when it is above the magenta dotted line and bearish when it is below the dotted lime colored line.
The 24 EMA is an exponential moving average that has its period set at 24 and reduces the lag by adding more weight to recent price.