MA Vortex Forex Trading Strategy

The MA Vortex forex trading strategy is a mechanical trading system that deploys the use of vr_moving_average.ex4 and the Vortex Indicator in delivering intraday signals on a wide range of currency pairs.

Chart Setup

MetaTrader4 Indicators: vr_moving_average.ex4 (Period modified = 35), Vortex Indicator.ex4 (default setting)

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

Recommended Trading Sessions: New York Open & London Open

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, AUD/NZD

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If the line of the vr_moving_average.ex4 custom indicator turns blue, while price bars opens and closes above its line, it is a signal to go long on our pair of interest i.e. a buy signal.
  2. If the green line of the Vortex Indicator crosses its red line bottom up as shown on Fig. 1.0, price is said to be experiencing a push upward i.e. a bullish trend.

Stop Loss for Buy Entry: Place stop loss below the blue rising MA line.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the line of the vr_moving_average.ex4 custom indicator turns red as shown on Fig. 1.0, price is said to be losing its bullish momentum, as such an exit or take profit is advised.
  2. If the green line of the Vortex Indicator crosses its red line top downwards, with the green line extending below the red line, an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following conditions or rules stay true:

  1. If the line of the vr_moving_average.ex4 custom indicator turns red, while price bars opens and closes below its line, then we have a signal to go short i.e. a sell alert.
  2. If the green line of the Vortex Indicator crosses its red line top downwards as shown on Fig. 1.1, price is said to be pressured lower i.e. a bearish signal.

Stop Loss for Sell Entry: Place stop loss above the red failing MA line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following indicator or chart pattern plays out:

  1. Watch out for the vr_moving_average.ex4 custom indicator line to change its color to blue as shown on Fig. 1.1, it is indicative of a momentum shift and as such an exit or take profit will suffice.
  2. If the green line of the Vortex Indicator crosses its red line bottom up as shown on Fig. 1.1, with the green line extending above the red line, an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The vr_moving_average.ex4 is a custom indicator that is essentially an enhanced version of the standard moving average.

The indicator is able to spot patterns and uniqueness in price dynamics which are undetectable to the naked eye.

The Vortex Indicator is a volatility–modified trend indicator, that aids traders spot short term trends, trading opportunities and at the same time determine when a trend is absent.

It is made up of two lines that gauge upward and downward movements.

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