Setting oneself up for failure in the currency market is pretty much easy, all you possibly need to do is relying on trading strategies that haven’t been tested thoroughly.
It is obvious that one can possibly spend hours scanning the internet for the right strategy – but still turn up unlucky finding one.
The Forex exit indicators strategy is a pre-made thoroughly tested trading strategy designed to help traders extract more profits from the forex market.
At the same time, it’s suitable for all time frames and currency pairs.
Simply start by adopting the pair you’re most comfortable with.
Market conditions are ever-changing, and to stay on top of the game requires a sound trading strategy like the one discussed here.
MetaTrader 4 Indicators: ChandelierExit.ex4 (Inputs Variable Modified; ATRPeriod=28, Colors Width Modified; #2=2, #3=2), Commodity Channel Index.ex4 (Parameters Modified; Period=28)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: EUR/CHF (EURO / Swiss Franc), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the orange line of the ChandelierExit custom indicator stayssomewhat below the candlesticks as depicted on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy alert will suffice.
- If the light sea green line of the Commodity Channel Index Metatrader 4 forex indicator breaksabove the 0.00 horizontal level as illustrated on Fig. 1.0, bulls are said to be driving price higher, as such a trigger to go long on the stipulated currency pair.
Stop Loss for Buy Entry: Place stop loss below the orange rising support line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a bullish trend is ongoing, the line of the ChandelierExit custom indicator reverts to magenta, it is signaling a likely end in bullish sentiments, therefore an exit or take profit stance is duly recommended.
- If the light sea green line of the Commodity Channel Index forex indicator breaks below the zero signal level during the course of a bullish trend (see Fig. 1.0), bulls power is said to be diminishing, thus an exit or take profit stand is highly advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the magenta line of the ChandelierExit custom indicator staysslightly above the candlesticks 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 focus.
- If the light sea green line of the Commodity Channel Index indicator dips below the 0.00 horizontal level as seen on Fig. 1.1, price is said to be making lower lows, therefore a sell signal is said to be in the cards.
Stop Loss for Sell Entry: Place stop loss above the declining magenta resistance line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is running, the line of the ChandelierExit custom indicator reverts to orange as illustrated on Fig. 1.1, it is signaling a likely end in bearish market sentiments, as such an exit or take profit stance will suffice.
- If the light sea green line of the Commodity Channel Index forex indicator surges above the zero signal level while a bearish trend is ongoing, bears power is said to be halting, thus an exit or take profit stance will do.
Sell Trade Example: EUR/CHF (EURO / Swiss Franc), H1 Chart
About The Forex Technical Indicators Used
The ChandelierExit indicator was created by Charles Le Beau and was originally featured in Alexander Elder’s books, the Chandelier Exit.
It is broadly used for setting stop-losses during a trend, however, the ChandelierExit can also be used as a trend tool.
The Commodity Channel Index or CCI is a momentum based indicator that falls under the oscillator classification.
Regardless of its name, the CCI is not exclusively designed for the commodity market but can be used in the forex market to gauge overbought/oversold conditions, as well as spot trends.
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