Fast Signals Forex Trading Strategy
The fast signals forex trading strategy is a reliable strategy that is designed to scalp the market for profits on the 1 minute and 5 minutes chart.
This system is unique and quite easy to follow, due to the combination of two key technical studies i.e. Fastsignals.ex4 custom indicator and the Relative Strength Index (14) MT4 indicator.
MetaTrader4 Indicators: Fastsignals.ex4 (default setting), Relative Strength Index (14)
Preferred Time Frame(s): 1-Minute, 5-Minutes
Recommended Trading Sessions: Any
Currency Pairs: Any
Buy Trade Example (Click the image for full view)
Long Entry Rules
Place a buy order if the following conditions or rules holds true:
- If the Fast signals custom indicator forms a blue arrow below price bars, with price breaking past the blue dotted line of the indicator, it is indicative of a strong buy signal.
- If the blue line of the Relative Strength Index (14) breaks above the 50.0000 level, it is a sign that price pressures favors the upside i.e. a bullish trend.
Stop Loss for Buy Entry: Place stop loss ~ 5 – 15 pips below entry price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on position(s) if the following conditions or rules are met:
- If the Fast signals custom indicator forms a red downward pointing arrow that is aligned above price bars, then we can say that price is about to make a U-turn, thereby prompting us to exit or take profit accordingly.
- If the blue line of the Relative strength Index (14) breaks above the 70 level, it signals price in the overbought region, which might give way to a possible reversal – an exit or take profit is needed here.
Sell Entry Rules
Enter a sell order in the market if the following chart or indicator patterns are in display:
- If the Fast signals custom indicator forms a downward pointing red arrow that placed above price bars, with price breaking below the indicator’s red dotted line, it denotes a sell signal.
- If the blue line of the Relative Strength Index (14) breaks below the 50.0000 level, it is an indication that price is being pressured lower, thereby resulting into a bearish trend.
Stop Loss for Sell Entry: Place stop loss ~ 5 – 15 pips above entry price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on order(s) if the following rules or conditions holds sway:
- As seen on Fig. 1.1 if the blue upward pointing arrow of the Fast signals custom indicator forms below price bars, it indicates a reversal in price action i.e. an exit or take profit trigger.
- If the blue line of the Relative Strength Index MT4 indicator breaks below the 30 level, it is an indication of price being in the oversold region, thus prompting a possible reversal in price, which in turns gives way to a possible exit or take profit.
About The Trading Indicators
The fastsignals.ex4 custom indicator is a technical study that incorporates a band along with arrows (red downward pointing arrows for sell and blue upward pointing arrows for buy) in measuring price action.
Finally, the Relative Strength Index MT4 Indicator (RSI) is a price-following oscillator that oscillates between 0 and 100. The indicator was designed by Wilder and he suggested the use of the 14-Day RSI.