Imagine a very simple forex trading strategy that scans the market for opportunities, see them, notifies you (evidently in line with the rules for entry and exit), so you can make the much needed profit.
Well, such a strategy can be seen in the Oracle Direction forex trading strategy.
The strategy combines 3 FX trading indicators in delivering intraday buy and sell signals.
MetaTrader4 Indicators: Envelopes.ex4 (color & width modified), 100pips Trend.ex4 (default setting), Parabolic SAR.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Recommended Trading Sessions: Any
Currency Pairs: Any
Buy Trade Example (Click the image for full size)
Long Entry Rules
Enter a buy entry when the following conditions or rules have been met:
- If the upper & lower corresponding blue upward pointing arrows of the 100pips Trend custom indicator align, it indicates that price is heading northwards.
- The blue dots of the Parabolic SAR must be aligned below price bars to resonate a bullish sentiment.
- If rule 1 & 2 are present, check to see that a bullish candle has opened and closed above the MediumSeaGreen Upper Envelope MT4 line indicator.
Stop Loss for Long Entry: Place stop loss below the Parabolic SAR dots in line with your personal money management strategy.
Exit Strategy/Take Profit for Long Entry
The following rules or conditions will define our exit or take profit:
- If a color (red or yellow) distortion forms within any of the rows of the 100pips Trend custom indicator, it signals for an exit or take profit.
- If any dot (in this case a blue dot) forms above price bars, it is indicative of a reversal and as such an exit/take profit is advised.
- If a candle closes below the black lower band of the Envelope MT4 indicator, it is a sign of increasing downward pressures.
Sell Entry Rules
Place a sell order when the following conditions or rules are met:
- If the upper & lower corresponding red downward pointing arrows of the 100pips Trend custom indicator aligns, it indicates downward pressures and as such a sell is appropriate.
- If the blue dots of the Parabolic SAR form above price bars, it signals downward price pressures and as such a sell is appropriate.
- Lastly, check to see if a bullish candle opens and closes below the black Lower Band of the Envelope indicator.
Stop Loss for Sell Entry: Place stop loss above the Parabolic SAR dots in line with your personal money management strategy.
Exit Strategy/Take Profit for Sell Entry
The following conditions or rules will define our exit/take profit strategy:
- If a color (blue or yellow) distortion forms within any of the rows of the 100pips Trend custom indicator, it is a take profit or an exit trigger.
- If the Parabolic SAR dots forms below the candlesticks, it is a trigger for an exit or take profit.
- If a bullish candle closes above the MediumSeaGreen upper band of the Envelope MT4 indicator, it signals a reversal.
About The Trading Indicators
The Envelopes MT4 indicator is built on two Moving Averages, one shifted upward and the other downward. Once prices reaches the upper or lower margin of the band it signals a buy or sell respectively.
The 100pips Trend.ex4 indicator draws blue and red arrows in two rows within its indicator window to depict a buy or sell signal respectively.
The Parabolic SAR is a trend indicator, which gives traders important information on the direction of trend as well as price stop-and-reverse points on the chart.