The Forex Kill Zone strategy combines one of the best moving average crossover trading systems with a trend-following indicator.
This Kill Zone strategy fits for any trade style (scalping, day trading and swing trading) and works for all currency pairs and other MT4 symbols.
Some traders report over 75% wins with the amazing strategy!
MetaTrader 4 Indicators: 3MAFan.ex4 (Inputs Variable Modified; MA1=24, MA2=16, Colors Width Modified; #0=2, #1=2, #2=2), Average Directional Movement 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: USD/CAD (US Dollar / Canadian Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the gold line of the 3MAFan custom indicator crosses below the pale turquoise and blue lines in a bottom up manner as shown on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the designated forex pair.
- If the light sea green ADX Metatrader 4 indicator line breaks above the 20.00 signal levelwhile the yellow green DI+ line runs above the wheat DI- line, as seen on Fig. 1.0, bulls are said to be gunning for higher prices, thus a buy alert is appropriate.
Stop Loss for Buy Entry: Place stop loss a few pips below previous support low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the gold line of the 3MAFan forex indicator intersects the pale turquoise line during the course of a bullish trend, bulls power is said to be weaning, therefore an exit or take profit is highly recommended.
- If the light sea green ADX indicator line drops below the 20 horizontal level or the wheat DI- line crosses above the yellow green DI+ line during a bullish trend as depicted on Fig. 1.0, it is a trigger to exit or take profit forthwith.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the gold line of the 3MAFan custom indicator crosses above the pale turquoise and blue lines in a top downward fashion as illustrated on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to sell the currency pair of interest.
- If the light sea green ADX line breaks above the 20.00 signal levelwhile the wheat DI- line hovers above the yellow green DI+ line as exemplified on Fig. 1.1, bears are said to be dragging price to the downside, thus a trigger to go short on the currency pair of focus.
Stop Loss for Sell Entry: Place stop loss a few pips above previous resistance high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the gold line of the 3MAFan forex indicator intersects the pale turquoise line while a bearish trend is ongoing, bears are said to be leaving the market in their droves, therefore an exit or take profit stance is duly advised.
- If the light sea green ADX line drops below the 20.00 horizontal level or its wheat DI- line crosses above the yellow green DI+ line while a bearish trend is on course (refer to Fig. 1.1), it is a trigger to exit or take profit at once.
Sell Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart
About The Forex Technical Indicators Used
The 3MAFan is also known as the 3 Moving Average Fan indicator, which is built on the 5-, 21-, 55- period moving averages, offering traders the ability to determine trend on all time frames.
The Average Directional Index of ADX is a forex indicator that is deployed in determining the strength of a trend.
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