Forex Killzone Strategy
Pro currency traders are known to wait for an edge in the market and then they enter when a high probability trade comes along. That’s the secret behind their long-term success!
The plan for every trader is to wait for the best possible trade opportunity and then enter the market.
The Forex Killzone strategy searches the market for high probability areas where there’s a clear buy/sell trend. It will always put you on the winning side of the market.
Although, the Killzone strategy is developed for the 1-hour chart, scalpers and day traders can still look to take positions on other time frames, for instance on the 5-minute chart.
MetaTrader 4 Indicators: lukas1_Arrows_Curves.ex4 (Parameters Modified; SSP=24, SkyCh=26), DeMarker.ex4 (Parameters Modified; Period=29)
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: AUD/USD (Australian Dollar / US Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue upward pointing arrow of the lukas1_Arrows_Curves custom indicator stayssomewhat below the candlesticks as illustrated on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the designated forex pair.
- If the light sea green line of the DeMarker Metatrader 4 forex indicator breaksand hovers above the 0.50 horizontal level as shown on Fig. 1.0, the general market sentiment is said to be bullish, therefore a buy stance will suffice.
Stop Loss for Buy Entry: Place stop loss below previous swing low support.
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 lukas1_Arrows_Curves custom indicator pops up a red downward pointing arrow (see Fig. 1.0), bull power is said to be diminishing, hence an exit or take profit posture is duly advised.
- If the light sea green line of the DeMarker custom indicator declines below the 0.50 reference level during the course of a bullish trend, more and more bulls are said to be leaving the market, thus a trigger to exit or take profit immediately.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the lukas1_Arrows_Curves custom indicator staysfairly above the candlesticks as depicted on Fig. 1.1, price is said to be dragged lower i.e. a trigger to sell the currency pair of interest.
- If the light sea green line of the DeMarker forex indicator breaksand hovers below the 0.50 reference level as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, therefore a sell stance will do.
Stop Loss for Sell Entry: Place stop loss above previous swing high resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the lukas1_Arrows_Curves custom indicator pops up a green upward pointing arrow (check Fig. 1.1) while the bearish trend is running, bears power is said to be halting, hence an exit or take profit stance is duly recommended.
- If the light sea green line of the DeMarker custom indicator surges above the 0.50 reference level during the course of a bullish trend, bears are said to be leaving the market increasingly, thus a trigger to exit or take profit straightaway.
Sell Trade Example: AUD/USD (Australian Dollar / US Dollar), H1 Chart
About The Forex Technical Indicators Used
The lukas1_Arrows_Curves is a custom forex indicator that displays a band around price, with arrows (blue and red) used in denoting market trends (bullish and bearish).
The DeMarker indicator is an oscillator designed by Tom Demark.
It also finds use when traders try to determine potential overbought and oversold regions in the market.
Start using this forex strategy in just 5 minutes. Click here to get started now.