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Forex Kiss Strategy

    The vast majority of successful traders deploy clean charts with a few supporting technical indicators, rather than a complicated chart with an overlay of colorful indicators.

    Kiss is an acronym for Keep It Simple Stupid.

    The Forex Kiss strategy is an indicator-based system that exploits just 3 basic indicators.

    They are accompanied by a set of easy buy/sell trend-following rules which are eventually enough to make many profitable trades on any currency pair.

    This strategy suits beginners as well as experienced traders worldwide.

    Chart Setup

    MetaTrader 4 Indicators: Envelopes.ex4 (Parameters Modified; Period=7, Colors Modified; Lower Band=None), kijun_sen_and_envelopes.ex4 (Colors Modified; #1=None, #2=None, Colors Width Modified; #0=2), Laguerre RSI.ex4 (Inputs Variable Modified; gamma=0.8)

    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

    Download

    Download the Forex Kiss Strategy

    Buy Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart

    Fig. 1.0

    Strategy

    Long Entry Rules

    Initiate a buy entry if the following indicator or chart pattern gets put on display:

    • If the lime green line of the kijun_sen_and_envelopes custom indicator crosses below the blue line of the Envelopes Metatrader 4 forex indicator as depicted on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the designated currency pair.
    • If the medium purple line of the Laguerre RSI custom indicator breaksabove the 0.50 horizontal level as seen on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy alert will suffice.

    Stop Loss for Buy Entry: Place stop loss below the previous swing support level.

    Exit Strategy/Take Profit for Buy Entry

    Exit or take profit if the following rules or conditions takes precedence:

    • If the lime green line of the kijun_sen_and_envelopes custom indicator intersects the blue Envelopes line during a bullish trend, bulls are said to be closing their market orders increasingly, thus an exit or take profit stance will suffice.
    • If the medium purple line of the Laguerre RSI indicator dips below the 0.50 reference level as depicted on Fig. 1.0, a bearish reversal is said to be imminent, thus an exit or take profit posture will do.

    Sell Entry Rules

    Enter a sell order if the following holds true:

    • If the lime green line of the kijun_sen_and_envelopes custom indicator crosses above the blue line of the Envelopes forex indicator as exemplified on Fig. 1.1, price is said to be dragged lower i.e. a trigger to sell the currency pair of interest.
    • If the medium purple line of the Laguerre RSI custom indicator breaks& hovers below the 0.50 horizontal level (refer to Fig. 1.1), the general market sentiment is said to be bearish, and as such a sell order is highly recommended.

    Stop Loss for Sell Entry: Place stop loss above the previous swing resistance level.

    Exit Strategy/Take Profit for Sell Entry

    Exit or take profit if the following takes center stage:

    • If the lime green line of the kijun_sen_and_envelopes custom indicator intersects the blue Envelopes line while a bearish trend is running, bears are said to be leaving the market in their droves, thus a trigger to exit or take profit immediately.
    • If the medium purple line of the Laguerre RSI indicator surges above the 0.50 reference level (check Fig. 1.1), a bullish reversal is said to be in the cards, thus an exit or take profit stance is advised..

    Sell Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart

    Fig. 1.1

    Free Download

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    About The Forex Technical Indicators Used

    The Envelopes forex indicator is a technical tool that tries to spot the upper and lower bands of a trading range.

    The Kijun_sen_and_envelope custom indicator is an important member of the Ichimoku Kinko Hyo indicator family and can be used to identify profitable trends.

    The Laguerre RSI oscillator is a brainchild of John Ehlers and it represents a technique used to “warp” ” the time coefficients of a regular EMA filter, thereby resulting in a quicker response.

    Easy Installation

    Start using this forex strategy in just 5 minutes. Click here to get started now.