Half Trend Oscillator Forex Trading Strategy

The idea behind the Half Trend Oscillator Forex trading strategy is to gauge momentum and use the information to determine the most profitable market direction.

Moreover, there’s an increased likelihood that you’ll catch a large section of price setups that remain significantly profitable and you’ll also stay in the direction of price.

In spite of everything, trading the market remains a question of making the right call about an uncertain future.

However, we seek to minimize these uncertainties using the Half Trend Oscillator Forex trading strategy.

Chart Setup

MetaTrader4 Indicators: AwesomeOC.ex4 (Default Setting), half-trend.ex4 (Inputs Variable Modified; Amplitude=8), gann-signal-indicator.ex4 (Inputs Variable Modified; Periods=12)

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

Download

Download the Half Trend Oscillator Forex Trading Strategy

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 bisque and tomato histograms of the AwesomeOC Metatrader 4 forex indicator stacks up above the 0.00 horizontal reference level as depicted on Fig. 1.0, price is said to be pushed higher i.e. a signal to go long on the designated currency pair.
  2. If the deep sky blue line of the half-trend indicator stays somewhat below the candlesticks as exemplified on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy alert will suffice.
  3. If the lime upward pointing arrow of the gann-signal-indicator stays below the candlesticks as illustrated on Fig. 1.0, bulls are said to be driving price higher, as such, placement of buy orders will be appropriate.

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 AwesomeOC indicator displays a tomato histogram that is aligned below the zero center line (see Fig. 1.0), bulls are said to be losing steam, as such an exit or take profit will do.
  2. If the line of the half-trend indicator turns tomato during the course of a bullish trend, it is a trigger to exit or take profit at once.
  3. If the gann-signal-indicator displays a red downward pointing arrow while a bullish signal is running, a bearish reversal is said to be looming, therefore an exit or take profit is recommended.

Sell Entry Rules

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

  1. If the tomato and bisque histograms of the AwesomeOC indicator stacks below the 0.00 horizontal signal line as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a signal to go short on the selected forex pair.
  2. If the tomato line of the half-trend indicator aligns fairly above the candlesticks as shown on Fig. 1.1, the general market sentiment is said to be bearish, therefore a sell alert will do.
  3. If the red downward pointing arrow of the gann-signal-indicator stays above the price bars as seen on Fig. 1.1, bears are said to be driving price lower, as such, opening sell orders will be appropriate.

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 AwesomeOC indicator displays a bisque histogram that is positioned above the zero center line, more bears are said to be closing their orders, hence a trigger to exit or take profit immediately.
  2. If the line of the half-trend indicator turns deep sky blue while a bearish trend is running, it is a trigger to exit or take profit forthwith.
  3. If the gann-signal-indicator displays a lime upward pointing arrow while a bearish trend is ongoing, bullish reversal is said to be on the horizon, therefore an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the Half Trend Oscillator Forex Trading Strategy

About The Trading Indicators

The AwesomeOC.ex4 indicator is an histogram-type indicator that is used to gauge market momentum and was first introduced by Bill Williams.

Traders can use this tool to confirm trends and determine probable reversal points.

The half-trend.ex4 custom indicator is used to measure trend reversals within the market.

The gann-signal-indicator.ex4 is a custom indicator that is plotted over the activity chart and is essentially a simple moving average of the last three periods highs or lows plotted in relation to the HiLo Activator.

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