The Forex Sniper Trend Reversal strategy is a trading system that is designed to trade high probability trend reversal setups.
It works on any time frame, and can also be applied to other markets as well, such as the crypto market.
We have been able to combine the concept of momentum and trends, which is an essential component for accurate price action analysis.
You don’t have to guess price reversals when using this strategy, instead you can stay calm and allow a set of market rules play out, which is a signal that reversal is looming.
This makes it possible for any trader to get in at an advantaged price, thereby allowing traders to profit more from price trend reversals.
Let check things out using the examples below….
MetaTrader4 Indicators: breakout-zones.ex4 (Default Parameters), Arrow_Signal.ex4 (Inputs Variable Modified; dist=44), Moving Average of Oscillator.ex4 (Parameters Modified; Fast EMA=23, SlowEMA=36, MACD SMA=19)
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: CAD/JPY (Canadian Dollar / Japanese Yen), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- Following declining prices, if price contracts, after which a bullish momentum candle is formed as shown on Fig. 1.0, price is signaling a possible reversal, thus a buy alert will suffice. Also watch price open & close above the breakout-zones indicator boundaries as a trigger to go long.
- If the aqua upward pointing arrow of the Arrow_Signal custom indicator staysslightly below the price bars as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, thus a buy trigger is apt.
- If the silver histograms of the Moving Average of Oscillator Metatrader 4 indicator break and stay above the 0.00 reference level (see Fig. 1.0), price is said to be driven to the upside i.e. a trigger to buy the designated forex pair.
Stop Loss for Buy Entry: Place stop loss 5 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If during the course of a bullish trend, price opens and closes below the outer boundary of the breakout-zones indicator, it is a signal to exit or take profit immediately.
- If the Arrow_Signal custom indicator displays a red downward pointing arrow during a bullish trend, it is indicative of diminishing bulls power, thus an exit or take profit will suffice.
- If the Moving Average of Oscillator indicator pops up a silver histogram below the 0.00 signal level, it is pointing to halting bulls power, therefore an exit or take profit is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- Following rising prices, if we see some price contraction, after which a bearish momentum candle is formed as depicted on Fig. 1.1, price is signaling a probable bearish reversal, thus a sell alert is advised. Also watch price open & close below the breakout-zones indicator boundaries as a trigger to go short.
- If the red downward pointing arrow of the Arrow_Signal custom indicator stayssomewhat above the price bars as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, thus a sell trigger is appropriate.
- If the silver histograms of the Moving Average of Oscillator indicator break and stay below the 0.00 alert level (refer to Fig. 1.1), price is said to be dragged lower i.e. a trigger to sell the selected currency pair.
Stop Loss for Sell Entry: Place stop loss 5 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is running, price opens and closes above the outer boundary of the breakout-zones indicator, an exit or take profit stance is duly advised.
- If the Arrow_Signal custom indicator displays an aqua upward pointing arrow during a bearish trend as seen on Fig. 1.1, it is indicative of weakening bears power, thus an exit or take profit will do.
- If the Moving Average of Oscillator indicator pops up a silver histogram above the 0.00 signal level, bears are said to be leaving the market increasingly, thus a trigger to exit or take profit at once.
Sell Trade Example: CAD/JPY (Canadian Dollar / Japanese Yen), H1 Chart
About The Forex Technical Indicators Used
The breakout-zones is a technical indicator that forms a support and resistance trading area on the activity window.
The Arrow_Signal custom indicator is built on the CCI indicator and delivers buy and sell signals when the CCI crosses the zero mark .
The indicator has been able to minimize lag, thereby increasing its accuracy.
The Moving Average of Oscillator or OsMA is a tool that tries to spot overbought or oversold conditions by gauging how far an oscillator lies from its moving average.
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