Forex Trading Strategy With Smart Buy & Sell Signals

One of the first thing we hear in the forex market is to always “Buy Low, Sell High”… but considering the volatile nature of the forex markets, being able to figure out suitable entry points can be a daunting task for just about anyone.

The Forex Trading Strategy With Smart Buy & Sell Signals is designed to spot regions where price has reached its lowest or highest points for the session, and subsequently trigger a buy or sell signal in that order.

Interpreting the accompanying trade setups for this strategy is straightforward and requires spending less time in front of your trading screen.

Chart Setup

MetaTrader4 Indicators: adx-ma.ex4 (Inputs Variable Modified; Ma_Period=36), delta-rsi-indicator.ex4 (Inputs Variable Modified; Fast RSI Period=36)

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

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If the blue dotted line of the adx-ma Metatrader 4 forex indicator gets aligned slightly below the candlesticks as depicted on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to go bullish on the selected currency pair.
  2. If the gray line plus histograms (gray & red) of the delta-rsi-indicator break above the zero signal line as illustrated on Fig. 1.0, bulls are said to be driving price higher, therefore a trigger to go long on the forex pair of interest will suffice.

Stop Loss for Buy Entry: Place stop loss below medium-term support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the adx-ma custom indicator displays a red dot on the activity chart during a bullish trend, it is indicating that price is retracing, as such an exit or take profit is recommended.
  2. If the gray line of the delta-rsi-indicator readjust to fall below the 0.00 center line as shown on Fig. 1.0, bulls power is said to be halting, subsequently, an exit or take profit is advised.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

  1. If the red dotted line of the adx-ma custom indicator gets placed fairly above the candlesticks as seen on Fig. 1.1, price is said to be driven lower, as such a sell alert is in the cards.
  2. If the gray line plus histograms (gray & green) of the delta-rsi-indicator break below the 0.00 center line as exemplified on Fig. 1.1, bears are said to be driving price lower, hence a trigger to go short on the designated fx pair.

Stop Loss for Sell Entry: Place stop loss above medium-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the adx-ma custom indicator displays a blue dot on the activity chart while a bearish trend is ongoing, more bears are said to be leaving the market, as such an exit or take profit will do.
  2. If the gray line of the delta-rsi-indicator realigns to surge above the 0.00 center line during a bearish signal as indicated on Fig. 1.1, more traders are said to be closing their sell positions, hence an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The adx-ma.ex4 indicator is an enhanced Average Directional Index (ADX) MT4 indicator that has an integrated smoothing filter.

The delta-rsi-indicator.ex4 is a modified RSI type oscillator that gives traders critical information regarding overbought/oversold market conditions.

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