Forex Major Key Strategy
The Forex major key strategy is a simple trend-following strategy that takes care of scanning for the best market trends across all time frames.
The FX major key strategy applies trend-following rules and an effective range-bound filter to produce trading signals that deliver long-term positive results.
The strategy can be deployed to all time frames and works for scalping, day trading and swing trading.
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MetaTrader 4 Indicators: Moving Average.ex4 (Parameters Modified; Period=28, Style=Yellow), Turn_Area_Chart.ex4 (Inputs Variable Modified; EMA_Method=Exponential), breakout-zones.ex4 (Colors Modified; #0=Blue, #1=Blue, Colors Width Modified; #0=2, #1=2)
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/USD (EURO / US Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the yellow 28 SMA Metatrader 4 forex indicator line crosses below the lines (dark violet & red) of the Turn_Area_Chart indicator in a bottom up fashion as shown on Fig. 1.0, the general market sentiment is said to be bullish i.e. a trigger to buy the designated currency pair.
- If price opens and closes above the breakout-zones indicator boundaries as depicted on Fig. 1.0, price is said to be driven to the upside, as such a signal to go bullish on the forex pair of interest.
Stop Loss for Buy Entry: Set stop loss below the thick yellow 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 running, the yellow line of the 28 SMA indicator intersects the lines (dark violet & red) of the Turn_Area_Chart custom indicator as illustrated on Fig. 1.0, bulls power is said to be diminishing, thus an exit or take profit stance is advised.
- If price opens & closes below the lower boundary of the breakout-zones indicator while a bullish trend is running, bulls are said to be closing their positions increasingly, therefore an exit or take profit posture is duly recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the yellow 28 SMA indicator line crosses above the lines (dark violet & red) of the Turn_Area_Chart custom indicator in a top downward manner as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, i.e. a trigger to sell the currency pair of focus.
- If price opens and closes below the breakout-zones indicator boundaries (see Fig. 1.1), price is said to be pressured lower, thus a trigger to go short on the selected forex pair.
Stop Loss for Sell Entry: Set stop loss above the thick yellow support line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the yellow line of the 28 SMA indicator intersects the lines (dark violet & red) of the Turn_Area_Chart custom indicator while a bearish trend is on course (refer to Fig. 1.1), more and more bears are said to be leaving the market, thus an exit or take profit stance will suffice.
- If price opens & closes above the upper boundary of the breakout-zones indicator while a bearish trend is ongoing, bears are said to be closing their positions more and more, therefore an exit or take profit posture is duly advised.
Sell Trade Example: EUR/USD (EURO / US Dollar), H1 Chart
About The Forex Technical Indicators Used
The 28 period Simple Moving Average is a technical analysis indicator that smooths out price data by constantly creating an updated average price over 28 periods.
The Turn_Area_Chart is a trend following custom MT4 indicator that incorporates the exponential moving average method and relative strength index in defining price action.
The breakout-zones is a technical indicator that forms support and resistance trading area.
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