iTrend Forex Trading Strategy

The iTrend forex trading strategy is a system that consists of 3 trading indicators. Two indicators are used to identify the trend (buy or sell) and the third indicator to enter the trade at a good price in that trend.

If properly implemented, these technical tools can yield tradable signals that traders can rely on.

Chart Setup

MetaTrader4 Indicators: i_Trend (Bands_Period.ex4 Value Modified = 30), (T_S_R)-Slope Direction Line.ex4 (default setting), -wmmm-twoPoleButterworth.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: Any forex pair

Download

Download the iTrend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following chart or indicator patterns are on display:

  1. If the thinner line of the -wmmm-twoPoleButterworth.ex4 custom indicator crosses the thicker (T_S_R)-Slope Direction Line bottom up as shown on Fig. 1.0, with the candlesticks aligning above the (T_S_R)-Slope Direction Line, price is said to be bullish i.e. a buy signal.
  2. If the green line of the i_Trend.ex4 indicator crosses its red line bottom up as shown on Fig. 1.0, price is said to be pushed higher i.e. a bullish signal.

Stop Loss for Buy Entry: Place stop loss 4 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions take precedence:

  1. If the thinner line of the -wmmm-twoPoleButterworth.ex4 custom indicator crosses the thicker (T_S_R)-Slope Direction Line top downward, bullish sentiment is said to be weaning i.e. an exit or take profit is appropriate.
  2. If the green line of the i_Trend.ex4 indicator crosses its red line top downwards as shown on Fig. 1.0, it is an indication that bulls are leaving the marketplace, as such an exit or take profit will do.

Sell Entry Rules

Initiate a sell if the following rules or conditions are intact:

  1. If the thinner line of the -wmmm-twoPoleButterworth.ex4 custom indicator crosses the thicker (T_S_R)-Slope Direction Line top downward as depicted on Fig. 1.1, with the candlesticks aligning mostly below the (T_S_R)-Slope Direction Line, price is said to be bearish i.e. a sell signal.
  2. If the green line of the i_Trend.ex4 indicator crosses its red line top downward as depicted on Fig. 1.1, price is said to be pushed lower i.e. a bearish signal.

Stop Loss for Sell Entry: Place stop loss 4 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions take footing:

  1. If the thinner line of the -wmmm-twoPoleButterworth.ex4 custom indicator crosses the thicker (T_S_R)-Slope Direction Line bottom up, the bearish sentiment is said to be weaning i.e. an exit or take profit is appropriate.
  2. If the green line of the i_Trend.ex4 indicator crosses its red line bottom up as shown on Fig. 1.1, it is an indication that bears are leaving the marketplace, as such an exit or take profit is appropriate.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The (T_S_R)-Slope Direction Line is a trend following indicator but has its period set at 80, which gives it more lag. Its line color changes between tomato and light blue.

The i_Trend.ex4 custom indicator is also trend following, but built within its indicator window, comprising of two lines (red and green), that overlap each other to yield trading signal.

The -wmmm-twoPoleButterworth.ex4 custom indicator is used as a low pass price filter with better smoothing response.

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