FX Line Forex Trading Strategy

The FX Line forex strategy consists of 2 easy to read trading indicators. Learn below how the buy and sell rules work for this winning strategy. Let’s get started with setting up the MT4 charts:

Chart Setup

MetaTrader4 Indicators: ForexLine_update_03.ex4 (color modified), BBMACD_v2_update_1.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Daily

Recommended Trading Sessions: Any

Currency Pairs: All pairs

Download

Download the FX Line Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following rules or conditions hold true:

  1. If the line of the ForexLine_update_03 custom indicator turns blue with price opening and closing above the line, price is said to be pressured higher i.e. a buy signal.
  2. If the red line and the blue histograms of the BBMACD_v2_update_1 custom indicator aligns above the 0.00 signal level as shown on Fig. 1.0, price is said to be bullish, as such a buy order will be appropriate.

Stop Loss for Buy Entry: Place stop loss below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following chart or indicator patterns hold sway:

  1. If the line of the ForexLine_update_03 custom indicator turns red while in an uptrend, it is indicative that the bullish sentiment is weaning i.e. an exit or take profit trigger.
  2. If the red line and the blue histograms on the BBMACD_v2_update_1 custom indicator breaks below the 0.00 signal level, price is said to be reversing from its earlier trend i.e. an exit or take profit is appropriate.

Sell Entry Rules

Enter a sell in the market if the following chart or indicator patterns gets displayed:

  1. If the line of the ForexLine_update_03 custom indicator turns red with price opening and closing below the line, price is said to be pressured lower i.e. a sell signal.
  2. If the red line and the blue histograms of the BBMACD_v2_update_1 custom indicator aligns below the 0.00 signal level as shown on Fig. 1.1, price is said to be bearish i.e. a sell order.

Stop Loss for Sell Entry: Place stop loss above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following are true:

  1. If the line of the ForexLine_update_03 custom indicator turns blue while in a downtrend, it is indicative that the bearish sentiment is halting i.e. an exit or take profit trigger.
  2. If the red line and the blue histograms on the BBMACD_v2_update_1 custom indicator breaks above the 0.00 signal level while in a downtrend, price is said to be reversing from its earlier trend i.e. an exit or take profit is appropriate.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The ForexLine_update_03.ex4 custom indicator is a trend following indicator that is made up of a line that consist of a red line (default color is white) and the blue line, which depicts sell and buy signal respectively.

The BBMACD_v2_update_1.ex4 custom indicator on the other hand is made up of Bollinger Bands and the MACD indicator in the same indicator window.

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