High Probability Forex Strategy
There are lower and higher quality trade setups that are always present in the market and traders are constantly on the lookout for the latter.
The high probability Forex strategy is designed to help traders scan the market for higher quality trade setups using technical indicators and logical buy/sell rules.
Our strategy triggers new market entries only when there’s a very high likelihood of being successful.
The success rate for this strategy is 70%-80%.
The path of least resistance is always being sought for you by the high probability Forex strategy i.e. you just follow the most profitable buy/sell trend.
MetaTrader 4 Indicators: Ichimoku Kinko Hyo.ex4 (Colors Modified; Tenkan-sen=None, Kijun-sen=None, Chikou Span=None), freeRSI.ex4 (Inputs Variable Modified; RSI=18)
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), M30 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the sandy brown cloud of the Ichimoku Kinko Hyo Metatrader 4 forex indicator staysaligned somewhat below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside, therefore a buy trigger will do.
- If the deep sky blue and lime green lines of the freeRSI custom indicator break above the 50.00 horizontal level as depicted on Fig. 1.0, bulls are said to be driving sentiments, thus a signal to go long on the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below the previous swing low price.
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 Ichimoku Kinko Hyo forex indicator pops up a thistle cloud, it is pointing to diminishing bulls power, as such an exit or take profit stance is duly recommended.
- If the deep sky blue line of the freeRSI indicator dips below the 50.00 center line while a bullish trend is ongoing (refer to Fig. 1.0), it is signaling an imminent bearish reversal, thus a trigger to exit or take profit immediately.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the thistle cloud of the Ichimoku Kinko Hyo forex indicator staysaligned slightly above the price bars as illustrated on Fig. 1.1, price is said to be dragged lower, therefore a sell alert will suffice.
- If the deep sky blue and lime green lines of the freeRSI forex indicator break and hover below the 50.00 horizontal level as illustrated on Fig. 1.1, the general market sentiment is said to be bearish, thus a signal to go short on the specified currency pair.
Stop Loss for Sell Entry: Place stop loss above the previous swing high price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Ichimoku Kinko Hyo forex indicator displays a sandy brown cloud during the course of a bearish trend, bullish reversal is said to be on the horizon i.e. a signal to exit or take profit immediately.
- If the deep sky blue line of the freeRSI indicator rises above the 50.00 center line (see Fig. 1.1) while a bearish trend is ongoing, bears power is said to be halting, as such an exit or take profit stance will suffice.
Sell Trade Example: EUR/USD (EURO / US Dollar), M30 Chart
About The Forex Technical Indicators Used
The Ichimoku Kinko Hyo indicator is an appropriate technical tool, particularly for newbies who want to understand trend momentum, direction, pinpointing reversals and locating entry levels on the forex chart.
The freeRSI custom indicator is an advanced RSI indicator that is built on the original Relative Strength Index indicator, alongside the Envelope indicator and three Moving Averages.
Start using this forex strategy in just 5 minutes. Click here to get started now.