The opportunity for considerable gains, 24/7 market availability, access to global dealers, the opportunity to manage risk exposure, profitability from spiking and dipping markets, along with leveraged trading makes the forex market very attractive.
An attractive market does not translate into profitability, however, a killing strategy will get the job done.
The Forex Killer Trading strategy is an amazing strategy that combines simple Fibonacci retracements with an overbought/oversold market indicator.
This strategy is designed to provide traders with low risk trade entries in the direction of the overall trend.
Let’s get started:
MetaTrader4 Indicators: AutoFibLinesMrVB.ex4 (Inputs Variable Modified; searchBars=240), qqe-histogram.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If during a bullish trend price retraces and bounces off the 61.8% Fibonacci level or golden ratio on the AutoFibLinesMrVB Metatrader 4 indicator, price is said to be pushed to the upside i.e. a trigger to go long on the designated forex pair.
- If during retracement, the red histograms and dim gray line of the qqe-histogram indicator dips below the -10 level (oversold condition), it is signaling an imminent reversal in price, and therefore a buy signal will suffice.
- If the lime line of the qqe-histogram indicator intersects the dim gray line to stay below it (see Fig. 1.0), market sentiment is said to be bullish i.e. a trigger to go long on the specified currency pair.
Stop Loss for Buy Entry: Place stop loss below Fibonacci support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If price opens and closes below the 61.8% Fibonacci level while a bullish trend is still running, bullish momentum is said to be halting, therefore an exit or take profit is duly recommended.
- If the lime line of the qqe-histogram indicator crosses the dim gray line to stay on top of it as seen on Fig. 1.0, it is a trigger to exit or take profit immediately.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the during a bearish trend price retraces and bounces off the 61.8% Fibonacci level or golden ratio on the AutoFibLinesMrVB custom indicator, price is said to be pressured lower i.e. a trigger to go short on the selected forex pair.
- If during retracement, the green histograms and dim gray line of the qqe-histogram indicator rise above the 10 level (overbought condition), it is a signal of an impending price reversal, and thus a sell signal will do.
- If the lime line of the qqe-histogram indicator crosses the dim gray line to stay above it (refer to Fig. 1.1), market sentiment is said to be bearish i.e. a trigger to go short on the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss above Fibonacci resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price opens and closes above the 61.8% Fibonacci level during a bearish trend, bearish momentum is said to be weaning, therefore an exit or take profit is advised.
- If the lime line of the qqe-histogram indicator crosses the dim gray line to stay below it as shown in Fig. 1.1, it is a trigger to exit or take profit straightway.
Sell Trade Example
About The Trading Indicators
The AutoFibLinesMrVB.ex4 custom indicator is a Fibonacci tool that automatically draws Fibonacci levels on the price chart.
It is a powerful retracement finder.
QQE is short for Quantitative Qualitative Estimator.
The qqe-histogram.ex4 indicator is comprised of a smoothed Relative Strength Index or RSI indicator along with two fast and slow volatility-based trailing levels.
The indicator is used to gauge trend.