CRM Forex Trading Strategy

The CRM Forex Trading Strategy is a trading strategy that is based purely on price action.

CRM is short for Candlestick Recognition Master, and is a technical study that plots both bullish and bearish candlestick patterns on the chart.

This takes the burden of spotting candlestick patterns off the traders neck.

Chart Setup

MetaTrader4 Indicators: Candlestick_Recognition_Master.ex4 (default setting), Buzzer.ex4 (length modified = 40), ATR (14)

Preferred Time Frame(s): Any

Recommended Trading Sessions: Any

Currency Pairs: Majors, currency crosses

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Download the CRM Forex Trading Strategy

Buy Trade Example (Click the picture for full size)

crm-forex-trading-strategy

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following chart or indicator patterns are in display:

  1. The Candlestick Recognition Master custom indicator spots bearish/bullish price action patterns on the top left corner of the chart and if a bullish price action pattern is displayed below price bars (P_L – Piercing Line Pattern), it indicates a bulls market.
  2. If a bullish candle opens and closes above the lime colored line of Buzzer (40) custom indicator, price is said to be bullish.
  3. If the DodgerBlue line of the ATR (14) breaks above the 0.0022 level, it denotes a buy signal.

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following conditions or rules are met:

  1. If the Candlestick Recognition Master custom indicator forms a bearish candlestick price action pattern above price bars, it thus denotes a trigger to exit or take profit.
  2. If a bearish candle opens & closes below the line of the Buzzer (40), it signals an exit or take profit move. The trigger has more weight when the color of the Buzzer (40) turns red.
  3. If the DodgerBlue line of the ATR (14) MT4 indicator breaks below the 0.0022 level, it is a trigger to exit or take profit.

Sell Entry Rules

Place sell position(s) if the following conditions or rule holds true:

  1. If the Candlestick Recognition Master custom indicator forms a bearish candlestick price action pattern above price bars, it is a trigger to sell.
  2. If a bearish candle opens & closes below the red line of the Buzzer (40) custom indicator, it is a signal to sell.
  3. If the DodgerBlue line of the ATR (14) MT4 indicator breaks below the 0.0022 level, it is a trigger to sell.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) in line with the following chart/indicator patterns:

  1. If the Candlestick Recognition Master custom indicator forms a bullish candlestick price action pattern below price bars, then it is time to exit or take profit.
  2. If a bullish candle opens & closes above the line of the Buzzer (40) custom indicator, it signals an exit or take profit.
  3. If the DodgerBlue line of the ATR (14) MT4 indicator breaks above the 0.0022 level, it is a trigger to exit or take profit as well.

crm-forex-trading-system

Fig. 1.1

Free Download

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About The Trading Indicators

The Candlestick Recognition Master indicator is a technical study that plots bullish/bearish candlestick patterns on the activity chart, thus removing the worry of having to spot such patterns by the trader. Bullish candlestick pattern alert are displayed below price bars in blue print, while bearish alert are displayed above price bars in red print.

The Buzzer custom indicator is derived from modified moving averages. Bullish triggers occurs when its line turn lime and price forms above it, while bearish triggers are displayed when the line turns red and price forms below it.

The ATR or Average True Range Indicator is an indicator that was introduced by Welles Wilder and is used in displaying market volatility.

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