Intraday Forex Strategy

The intraday Forex strategy is designed to open and close trades within the same day using some relatively less riskier trading rules with the help of the DeMarker technical indicator to accrue the desired profits.

One of the ways to make the best out of every trading strategy is to stay disciplined, and by so doing you can simply accomplish more.

As much as we recommend this intraday trading strategy, the standard procedure on all trading strategies is to experiment with the trading rules to suit your preferences.

Learn from the blunders and implement your corrections as you trade along.

Chart Setup

MetaTrader 4 Indicators: Hull Trend.ex4 (Inputs Variable Modified; HMA_Period=56, Displacement=3, Colors Width Modified; #0=3, #1=3), hull-moving-average.ex4 (Inputs Variable Modified; period=63, Colors Modified; #0=Yellow), DeMarker.ex4 (Parameters Modified; Period=29)

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

Recommended Trading Sessions: London, New York, Tokyo

Currency Pairs: Any pair

Download

Download the Intraday Forex Strategy

Buy Trade Example: EUR/CHF (EURO / Swiss Franc), M5 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the blue price bars of the Hull Trend custom indicator superimposes the candlesticks as seen on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated forex pair.
  • If the yellow line of the hull-moving-average forex indicator aligns fairly below the price bars as shown on Fig. 1.0, bulls are said to be driving sentiments, as such a buy signal will do.
  • If the light sea green line of the DeMarker Metatrader 4 indicator breaks above the 0.50 horizontal level as depicted on Fig. 1.0, it is a signal to buy the currency pair of interest.

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

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 ongoing, the Hull Trend indicator pops up a red price bar as illustrated on Fig. 1.0, bulls are said to be closing their positions increasingly, therefore an exit or take profit stance will suffice.
  • If the hull-moving-average indicator line reverts to dark violet while a bullish trend is ongoing, bulls’ power is said to be halting, hence a signal to exit or take profit at once.
  • If the light sea green line of the DeMarker indicator dips below the 0.50 reference level while a bullish trend is running, a bearish reversal is said to be imminent, as such an exit or take profit stance is apt.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red price bars of the Hull Trend custom indicator superimposes the candlesticks as exemplified on Fig. 1.1, price is said to be dragged lower i.e. a trigger to sell the forex pair of interest.
  • If the dark violet line of the hull-moving-average forex indicator aligns slightly above the price bars as depicted on Fig. 1.1, bears are said to be driving sentiments, as such a sell signal is recommended.
  • If the light sea green line of the DeMarker indicator dips below the 0.50 reference level (see Fig. 1.1), it is a trigger to go short on the forex pair of focus.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If while a bearish trend is running, the Hull Trend indicator pops up a blue price bar (refer to Fig. 1.1), bears are said to be leaving the market in their droves, thus a signal to exit or take profit immediately.
  • If the hull-moving-average indicator line reverts to yellow during the course of a bearish trend, bears power is said to be weaning, hence a signal to exit or take profit forthwith.
  • If the light sea green line of the DeMarker indicator surges above the 0.50 reference level while a bearish trend is ongoing, a bullish reversal is said to be in the cards, as such an exit or take profit stance is apt.

Sell Trade Example: EUR/CHF (EURO / Swiss Franc), M5 Chart

Fig. 1.1

Free Download

Download the Intraday Forex Strategy

About The Forex Technical Indicators Used

The Hull Trend custom forex indicator is a popular trend following technical study that is based on the 20-Day moving average.

The hull-moving-average is a more responsive moving average that eliminates lag altogether while enhancing smoothing concurrently.

The DeMarker indicator is an oscillator designed by Tom Demark.

It finds use when traders are trying to determine potential overbought and oversold regions in the market.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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