Initiating a clean, yet profitable forex market entry is every traders dream.
We have built the Forex Entry Signal strategy for Metatrader 5 with the help of some great technical indicators and tricks for better market entry signals that work on any pair.
The most significant consideration when trading based on market entry signals is to always scan for predefined rules that clearly spells out buy/sell triggers.
In other words, the most convenient forex entry signal condition is always a number of indicators that come together to point to a strong trend as illustrated in the examples below.
The hard part is knowing when to enter a trade and this strategy will focus on that side of the equation.
MetaTrader 5 Indicators: Instantaneous trendline levels.ex5 (Inputs Variable Modified; Period=42, Filled zones display=Don’t display the filled zones), Relative Vigor Index.ex5 (Inputs Variable Modified; Period=36)
Trade Style: Scalping, day trading, swing trading
Trading Sessions: London | New York | Tokyo
Currency Pairs: Majors, cross pairs, exotics
Platform: Metatrader 5 (MT5)
Buy Trade Example: USDJPY, H1 Chart
Trading Strategy Rules For Buy and Sell Trades Explained
Enter a buy trade if the following trading conditions are met:
- If the green and red lines of the Relative Vigor Index Metatrader 5 forex indicator break and hover above the 0.00 horizontal signal level as shown on Fig. 1.0, price is said to be pressured to the upside i.e. a trigger to buy the selected currency pair.
- If the Instantaneous trendline levels custom indicator displays a lime green line that is aligned slightly below the candlesticks as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, therefore a buy alert will suffice.
Suggested Stop Loss for Buy Entry: Place stop loss 3 pips below support.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions are met:
- If the green line of the Relative Vigor Index forex indicator dips below the 0.00 horizontal level during the course of a bullish signal, more and more bulls are said to be closing their positions, therefore an exit or take profit is duly advised.
- If while a bullish trend is ongoing, the lime green line of the Instantaneous trendline levels custom indicator reverts to deep pink as seen on Fig. 1.0, it is signaling a diminishing bulls power, as such an exit or take profit is recommended.
Open a sell trade if the following trading conditions are met:
- If the green and red lines of the Relative Vigor Index forex indicator dip and hover below the 0.00 horizontal reference level as depicted on Fig. 1.1, price is said to be pushed lower, as such a sell entry should be rightly considered.
- If the Instantaneous trendline levels custom indicator displays a deep pink line that is aligned somewhat above the price bars as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, thus a signal to go short on the stipulated forex pair.
Suggested Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.
Suggested Exit Strategy/Take Profit for Sell Entry
Exit the sell trade if the following trading conditions are met:
- If the green line of the Relative Vigor Index forex indicator surges above the 0.00 horizontal level while a bearish trend is running, a bullish reversal is said to be looming, and as such an exit or take profit stance is apt.
- If the deep pink line of the Instantaneous trendline levels custom indicator reverts to lime green as shown on Fig. 1.1, bears power is said to be halting, thus a trigger to exit or take profit at once.
Sell Trade Example: USDJPY, H1 Chart
MT5 Trading Indicators Used For This Strategy
The Relative Vigor Index is a technical indicator that is deployed in gauging the conviction of a recent price action and the probability that it will carry on.
The Instantaneous trendline levels is a forex indicator that uses self-adjusting levels for filtering buy/sell market signals.