Instantaneous Trend Forex Trading Strategy

The Instantaneous Trend forex trading strategy is trend seeking in its design due to the integration of Instantaneous_Trend.ex4 and the Var_Mov_Avg.ex4 custom indicators.

You definitely don’t require a hell of brainstorming to understand its simplified entry rules. Let’s see how it stacks up:

Chart Setup

MetaTrader4 Indicators: Instantaneous_Trend.ex4 (default setting), Var_Mov_Avg.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: Any forex pair with low to medium spread

Download

Download the Instantaneous Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy if the following conditions or rules holds are visible on the activity chart:

  1. If the blue line of the Instantaneous_Trend.ex4 custom indicator crosses the red line bottom up and stays above it, then it is a signal to long on the currency of choice. Also note that the more the gap between blue and the red line, the stronger the trend.
  2. If the yellow dots of the Var_Mov_Avg.ex4 custom indicator forms as shown on Fig. 1.0, while price closes above its line, then we can say a buy is in the horizon.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following indicator or chart patterns are in display:

  1. If the blue line of the Instantaneous_Trend.ex4 custom indicator crosses its red line top downwards, it is a trigger to exit or take profit accordingly.
  2. If the magenta dots of the Var_Mov_Avg.ex4 custom indicator forms, while price closes below its line, then price can be said to be reversing i.e. an exit or take profit is advised.

Sell Entry Rules

Initiate sell position(s) if the following rules or conditions are in place:

  1. If the blue line of the Instantaneous_Trend.ex4 custom indicator crosses the red line top downwards and stays below it, then we are right to say that price is bearish i.e. a sell signal.
  2. If the magenta dots of the Var_Mov_Avg.ex4 custom indicator forms as seen on Fig. 1.1, while price closes below its line, it is a signal to sell i.e. a short trigger.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following rules or conditions holds true:

  1. If the blue line of the Instantaneous_Trend.ex4 custom indicator crosses its red line bottom up as shown on Fig. 1.1, it is a trigger to exit or take profit accordingly.
  2. If the dots of the Var_Mov_Avg.ex4 custom indicator turns yellow, with price closes above it, then price is said to be retracing i.e. an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the Instantaneous Trend Forex Trading Strategy

About The Trading Indicators

The Instantaneous_Trend.ex4 custom indicator is a trendline created by John Ehlers, with the mandate to spot trend in the market by eliminating its cycle component. The indicator comes in six variants.

The Var_Mov_Avg.ex4 custom indicator on the other hand is based on the moving average, but yield more accurate signals based on it advance noise filter.

It deploys changes in color of its dotted line to signal trend changes as shown above.

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