Changes in daily currency prices that may seem random at first sight could eventually turn out to be buy/sell signals of new trends that day traders and swing traders can absolutely take advantage of.
The Forex Daily strategy for Metatrader 5 relies on simple technical indicators and price set-ups to forecast the best possible future price directions.
The daily forex strategy works for any pair and timeframe of your preference.
Trade Setup
MetaTrader 5 Indicators: Bollinger Bands.ex5 (Default Setting), dma.ex5 (Inputs Variable Modified; SR MA Smoothing type=Exponential, Colors Modified; SR DMA=None, MR DMA=None), Directional momentum of average.ex5 (Default Setting)
Trade Style: 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 Forex Daily Strategy For Metatrader 5
Buy Trade Example: EURCAD, 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:
- If the lime line of the dma custom indicator crosses below the middle medium sea green line of the Bollinger Bands indicator as shown on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the stipulated currency pair.
- If the Directional momentum of average forex indicator turns deep sky blue within its window as shown on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy alert will suffice.
Suggested Stop Loss for Buy Entry: Place stop loss below medium-term support.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions are met:
- If while a bullish trend is running, the lime dma custom indicator line intersects the medium sea green line (refer to Fig. 1.0), bulls power is said to be weaning i.e. a trigger to exit or take profit forthwith.
- If the line of the Directional momentum of average indicator turns light salmon during the course of a bullish trend, it is pointing at weaning bulls power, therefore an exit or take profit will do.
Sell Entry
Open a sell trade if the following trading conditions are met:
- If the lime line of the dma custom indicator crosses above the middle medium sea green line of the Bollinger Bands indicator as seen on Fig. 1.1, price is said to be pressured lower i.e. a trigger to sell the designated forex pair.
- If the Directional momentum of average forex indicator line turns light salmon within its window as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, as such a sell alert will do.
Suggested Stop Loss for Sell Entry: Place stop loss above medium-term resistance.
Suggested Exit Strategy/Take Profit for Sell Entry
Exit the sell trade if the following trading conditions are met:
- If the lime dma custom indicator line intersects the middle medium sea green line while a bearish trend is ongoing as shown on Fig. 1.1, bears power is said to be halting i.e. a trigger to exit or take profit immediately.
- If the line of the Directional momentum of average indicator turns deep sky blue during the course of a bearish trend, it is signaling diminishing bears power, therefore an exit or take profit stance is recommended.
Sell Trade Example: EURCAD, H1 Chart
Fig. 1.1
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Download the Forex Daily Strategy For Metatrader 5
MT5 Trading Indicators Used For This Strategy
The famous Bollinger Band indicator was created by John Bollinger.
It’s a tool to gauge volatility in the market, along with other vital information like sessions of market consolidation, direction of trend, possible tops and bottoms along with price targets.
Bollinger Bands are actually plotted two standard deviations away from a simple moving average.
Dma is short for Displaced Moving Averages and it represents a technical indicator that places three Moving Averages within the main activity chart window.
The Directional momentum of average indicator is a technical tool that gauges trend strength.
The indicator is implemented as a colored line that oscillates around the zero horizontal level.