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EUR/USD Forex Strategy For Metatrader 5

    The EURUSD pair is known to be one of the most traded forex pairs among currency traders.

    This makes it quite an attractive trading vehicle for most currency traders.

    It is also believed to behave in a predictable manner when traded technically, especially when price action is applied.

    Furthermore, the EURUSD pair offers one of the lowest spreads, making it the number one choice for many market participants when scalping or day trading.

    The EUR/USD Forex strategy for Metatrader 5 is a simple trend following strategy that works very well for any trade style.

    It works for scalping, day trading and swing trading the Euro/US Dollar pair.

    Trade Setup 

    MetaTrader 5 Indicators: keltner_channel315.ex5 (Inputs Variable Modified; Moving average period=36), Impulse.ex5 (Inputs Variable Modified; Average period=28), Relative Strength Index.ex5 (Inputs Variable Modified; Period=24)

    Trade Style: Scalping, day trading, swing trading

    Trading Sessions: London | New York | Tokyo

    Currency Pairs: Majors, cross pairs, exotics

    Platform: Metatrader 5 (MT5)

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    Download the EUR/USD Forex Strategy For Metatrader 5

    Buy Trade Example: EURUSD, H1 Chart

    Fig. 1.0

    Trading Strategy Rules For Buy and Sell Trades Explained

    Buy Entry

    Enter a buy trade if the following trading conditions are met:

    1. If the dodger blue line of the Relative Strength Index Metatrader 5 forex indicator breaksand hovers above the 50.00 horizontal level as shown on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the designated currency pair.
    2. If the gray line of the Impulse custom indicator surges above the 0.00 horizontal level as shown on Fig. 1.0, price is said to be pressured higher, thus a trigger to go long on the selected currency pair.
    3. If the deep sky blue middle line of the keltner_channel315 custom indicator aligns slightly below the candlesticks (see Fig. 1.0), the overall market sentiment is said to be bullish, and as such a buy will suffice.

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

    Suggested Exit Strategy/Take Profit for Buy Trade

    Exit the buy trade if the following trading conditions are met:

    1. If the dodger blue line of the Relative Strength Index indicator readjust to break below the 50.00 signal level, it is signaling a likely end in bullish pressures, therefore an exit or take profit is duly recommended.
    2. If the gray line of the Impulse custom indicator dips below the 0.00 alert level, a bearish reversal is said to be on the horizon, thus an exit or take profit stance will do.
    3. If the deep sky blue middle line of the keltner_channel315 forex indicator reverts to pale violet red as shown on Fig. 1.0, bulls power is said to be halting, and as such an exit or take profit will suffice.

    Sell Entry

    Open a sell trade if the following trading conditions are met:

    1. If the dodger blue line of the Relative Strength Index indicator dips and hovers below the 50.00 alert level (checkout Fig. 1.1), price is said to be dragged lower i.e. a trigger to sell the currency pair of focus.
    2. If the gray line of the Impulse forex indicator breaksbelow the 0.00 signal level as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to go short on the currency pair of interest.
    3. If the pale violet red middle line of the keltner_channel315 custom indicator aligns fairly above the price bars (refer to Fig. 1.1), bears are said to be driving sentiments, and as such a sell market order will do.

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

    Suggested Exit Strategy/Take Profit for Sell Entry

    Exit the sell trade if the following trading conditions are met:

    1. If the dodger blue line of the Relative Strength Index indicator realigns to surge above the 50.00 signal level, it is pointing to diminishing bear power, therefore an exit or take profit is duly advised.
    2. If the gray line of the Impulse custom indicator jumps above the 0.00 alert level, a bullish reversal is said to be imminent, thus a trigger to exit or take profit at once.
    3. If the pale violet red middle line of the keltner_channel315 forex indicator reverts to deep sky blue as depicted on Fig. 1.1, bears are said to shutting their positions increasingly, therefore an exit or take profit stance is recommended.

    Sell Trade Example: EURUSD, H1 Chart

    Fig. 1.1

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    Download the EUR/USD Forex Strategy For Metatrader 5

    MT5 Trading Indicators Used For This Strategy

    The Impulse indicator shares a lot of similarities with the RSI indicator, however, it is deployed as a tool that reveals the number of points passed.

    The keltner_channel315 indicator represents a volatility-based envelope that is set above and below an exponential moving average.

    The Relative Strength Index is a momentum indicator that gauges the magnitude of recent price changes to determine overbought or oversold conditions in the price of a forex pair.