Precision Trend Forex Swing Trading Strategy

The Precision Trend forex trading strategy is a swing trading strategy that is able to give traders a better clue to who’s in control of the market.

It vividly tells you who is losing control of the market: the buyers or the sellers.

Chart Setup

MetaTrader4 Indicators: Three_Color_MA.ex4 (default setting), TMA.ex4 (default setting), precision_trend_histo_2.ex4 (default setting)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy      

Long Entry Rules

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

  1. If the green histograms of the precision_trend_histo_2.ex4 custom indicator forms within its indicator window as shown on Fig. 1.0, price is said to be bullish i.e. a signal to buy the currency pair of focus.
  2. If the green line of the TMA custom indicator crosses the line of the Three_Color_MA.ex4 custom indicator bottom up and aligns itself beneath the Three_Color_MA.ex4 custom indicator line, with price trading somewhat above, price is said to be pressured upward i.e. a trigger to go long.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions hold sway in the market:

  1. If the precision_trend_histo_2 custom indicator forms red histogram during a bullish signal, then we can assume that bullish sentiment is weaning, hence an exit or take profit is highly recommended.
  2. If the green line of the TMA custom indicator intersects the line of the Three_Color_MA.ex4 custom indicator as displayed on Fig. 1.0, the bullish sentiment in the market is said to weaning, hence an exit or take profit is advised.

Sell Entry Rules

Initiate a sell entry if the following holds true:

  1. If the red histograms of the precision_trend_histo_2 custom indicator forms within its indicator window as shown on Fig. 1.1, the prevalent market sentiment is said to be bearish i.e. a signal to go short on the currency pair of focus.
  2. If the green line of the TMA custom indicator crosses the line of the Three_Color_MA.ex4 custom indicator top downward and aligns itself above the Three_Color_MA.ex4 custom indicator line, while price is trading somewhat beneath, the market is said to be pressured downward i.e. a trigger to sell.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following chart or indicator pattern gets displayed:

  1. If the precision_trend_histo_2 custom indicator forms green histogram during a bearish trend, it is a forward signal to a halting bears market, hence an exit or take profit is highly recommended.
  2. If the green line of the TMA custom indicator intersects the line of the Three_Color_MA.ex4 custom indicator as illustrated on Fig. 1.1 during a sell trigger, an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Three_Color_MA.ex4 is an alternative Moving Average that plots exponential moving average with the specific period marking diverse color movement upwards and downwards.

Triangular Moving Average (TMA) is simply an averaged twice Simple Moving Average that delivers extra weight to the mid-section of the data interval.

The precision_trend_histo_2 is an enhanced version of the well-known “precision trend” indicator. Traders can use it to gauge trend in the market.

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