A trading plan that includes technical indicators and a couple of simple rules on how to implement these indicators can simplify your trading.
It is important to keep up with the idea that simple is unsurpassed, hence we have designed the Major Trend forex trading strategy to suit your trading needs.
Add the indicators listed and you’re good to go with profits, while enjoying the simple rules embedded in the trading strategy.
MetaTrader4 Indicators: ForexMajorTrend.ex4 (Default Setting), ForexLine_update_03.ex4 (Input Variable Modified; ForexLineColor2=Red, Colors Modified; #5=Red)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair, BitCoin, Gold,…
Buy Trade Example
Long Entry Rules
Enter a buy order if the following indicator or chart setup gets displayed:
- If the line of the ForexLine_update_03.ex4 custom MT4 indicator turns blue aligning slightly below the candlesticks as seen on Fig. 1.0, price is said to be pushed to the upside, hence a trigger to buy the stipulated forex pair.
- If the blue vertical blue bars of the ForexMajorTrend.ex4 custom indicator gets seen within its indicator window as shown on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to buy the currency pair of focus.
Stop Loss for Buy Entry: Place stop loss 5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions holds sway:
- If the line of the ForexLine_update_03 custom.ex4 MT4 indicator turns red during a bullish signal, then price is said to be easing on its bullish stance, as such an exit or take profit is advised.
- If the ForexMajorTrend.ex4 custom indicator displays a red vertical bar within its window as illustrated on Fig. 1.0 while a buy alert is ongoing, it is pointing to weaning bullish sentiment, as such an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following becomes consistent with the activity chart:
- If the line of the ForexLine_update_03 custom.ex4 MT4 indicator turns red aligning marginally above price bars as illustrated on Fig. 1.1, price is said to be taken lower, hence a sell order will do.
- If the red vertical blue bars of the ForexMajorTrend.ex4 custom indicator gets seen within its indicator window as depicted on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to sell the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss 5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the line of the ForexLine_update_03 custom MT4 indicator turns blue while a sell is ongoing, then price is said to be easing on its bearish stance, as such an exit or take profit is recommended.
- If the ForexMajorTrend.ex4 custom indicator displays a blue vertical bar within its window as seen on Fig. 1.1 while a bears market is running, it is an indication of halting bears power, hence an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The ForexMajorTrend.ex4 displays red (bearish) and blue (bullish) vertical bars in a subwindow below the main trading chart.
The indicator window is calibrated 0 and 1.
The ForexLine_update_03.ex4 is a trend following line indicator that changes color based on the prevalent market trend (blue for bulls and red for bears).