The high win ratio Forex strategy is trend following and offers a trading approach with better profit yielding entry and exit signals.
Regardless of how simple this trading approach might seem, our major concern is ensuring we capture the best possible trend in the market that we can ride for good profits.
With this strategy, you can align with the predominant bull/bear bias and trade in that direction.
MetaTrader 4 Indicators: HalfTrend-1.02.ex4 (Inputs Variable Modified; Amplitude=8), Relative Vigor Index.ex4 (Parameters Modified; Period=28)
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: GBP/USD (Sterling / US Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the dodger blue upward pointing arrow of the HalfTrend-1.02 custom indicator stay slightly below the candlesticks as shown on Fig. 1.0, price is said to be pushed to the upside, thus a trigger to go long on the selected currency pair.
- If the red and green lines of the Relative Vigor Index Metatrader 4 forex indicator break above the zero horizontal level as depicted on Fig. 1.0, the general market sentiment is said to be bullish, therefore a trigger to go long on the currency pair of focus.
Stop Loss for Buy Entry: Place stop loss below the previous swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the HalfTrend-1.02 custom indicator displays a red downward pointing arrow during the course of a bullish trend (see Fig. 1.0), a bearish reversal is said to be looming, thus a trigger to exit or take profit immediately.
- If the green line of the Relative Vigor Index forex indicator dips below the zero horizontal line while a bullish trend is ongoing, it is pointing to diminishing bulls power, as such an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the HalfTrend-1.02 custom indicator stay fairly above the price bars as exemplified on Fig.1.1, price is said to be dragged lower, hence a trigger to go short on the stipulated forex pair.
- If the red and green lines of the Relative Vigor Index indicator fall below the zero reference line (refer to Fig. 1.1), the overall market sentiment is said to be bearish, therefore a sell signal will suffice.
Stop Loss for Sell Entry: Place stop loss above the previous swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the HalfTrend-1.02 custom indicator pops up a dodger blue upward pointing arrow while a bearish trend is running, a bullish reversal is said to be on the horizon, thus a trigger to exit or take profit straightaway.
- If the green line of the Relative Vigor Index forex indicator surges above the zero horizontal level during the course of a bearish trend, bears power is said to be halting, as such an exit or take profit stance is advised.
Sell Trade Example: GBP/USD (Sterling / US Dollar), H1 Chart
About The Forex Technical Indicators Used
The HalfTrend-1.02 custom indicator is a popular trend following buy/sell forex indicator.
The Relative Vigor Index is a default Metatrader 4 forex indicator that is deployed in gauging the conviction of a recent price action and the probability that it will carry on.
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