Lukas Arrows Forex Trading Strategy

The Lukas Arrows forex strategy is designed to suit both intraday traders and scalpers. The strategy is hinged on trading divergence via the use of lukas1_Arrows_Curves.ex4 and the ds_HDiv_OsMA_0.ex4 custom indicators.

Feel free to download this great strategy below.

Chart Setup

MetaTrader4 Indicators: lukas1_Arrows_Curves.ex4 (default setting), ds_HDiv_OsMA_01.ex4 (default setting)

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

Recommended Trading Sessions: London and US

Currency Pairs: All except exotic pairs

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Download Lukas Arrows Forex trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. Watch out for bullish divergence in the ds_HDiv_OsMA_01.ex4 custom indicator i.e. price is experiencing lower lows as shown by the dotted red lines, while the ds_HDiv_OsMA_01.ex4 indicator dotted lines is also plotting higher highs within the indicator window as seen on Fig. 1.0.
  2. If the lukas1_Arrows_Curves custom indicator displays a blue upward pointing arrow that is aligned below the candlesticks, price is said to be pushed higher i.e. a buy signal.

Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following chart setup takes precedence:

  1. Take note of any possible bearish divergences in the ds_HDiv_OsMA_01.ex4 custom indicator i.e. price splits from the indicator and both tend to head in opposite directions. This is a trigger to exit or take profit accordingly.
  2. If the lukas1_Arrows_Curves.ex4 custom indicator displays a red downward pointing arrow that is aligned above the candlesticks, it is a signal to exit or take profit on position(s) entered.

Sell Entry Rules

Initiate a sell in the market if the following chart or indicator pattern gets displayed:

  1. Watch out for bearish divergence in the ds_HDiv_OsMA_01.ex4 custom indicator i.e. price is experiencing higher highs as shown by the dotted green lines, while the ds_HDiv_OsMA_01.ex4 indicator dotted green lines is also plotting lower lows within the indicator window as seen on Fig. 1.1. Enter a sell in the market
  2. If the lukas1_Arrows_Curves.ex4 custom indicator displays a red downward pointing arrow that is aligned above the candlesticks, price is said to be pushed lower i.e. a sell signal.

Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following chart or indicator patterns are in display:

  1. Take note of any possible bullish divergences in the ds_HDiv_OsMA_01.ex4 custom indicator i.e. price splits from the indicator and both tend to head in opposite directions. This is a trigger to exit or take profit accordingly.
  2. If the lukas1_Arrows_Curves.ex4 custom indicator displays a blue upward pointing arrow that is aligned below the candlesticks, it is a trigger to exit or take profit on position(s) entered.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The lukas1_Arrows_Curves.ex4 is a custom indicator that displays a band around price, with arrows (blue and red) used in denoting trends (bullish and bearish).

The ds_HDiv_OsMA_01.ex4 custom indicator is an oscillator moving average that also plots price divergences on its indicator window and on the chart window as well, making it easy to spot divergences just by taking a glance at the chart.

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