QQE Forex Signals Strategy

The QQE Forex strategy is built around the popular QQE technical indicator and mostly deployed by currency traders to capture big market swings.

Traders can also generate signals on smaller swings, although they’re less profitable.

Traders should therefore be able to filter big swing from unwanted ones. It is important for traders to stay mindful of the leading trends, medium-term trends and short-term market trends.

The additional technical indicators that we’ve added are designed to give traders better clarity in terms of trading decisions.

Trade signals are generated when the indicators in use all put up the same entry patterns for buy or sell triggers.

Chart Setup

MetaTrader 4 Indicators: forex-mt4-trend-indicator.ex4 (Inputs Variable Modified; MaPeriod=42), QQE.ex4 (Colors Width Modified; #0=2), Relative Strength Index.ex4 (Parameters Modified; Period=19)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example: EUR/CHF (Euro / Swiss Franc), M30 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the blue upward pointing arrow plus candle-like bodies of the forex-mt4-trend-indicator align fairly below the candlesticks as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the designated currency pair.
  • If the blue line of the QQE custom indicator hovers above the 50.00 horizontal level as seen on Fig. 1.0, the market is said to be favoring bullish sentiments i.e. a signal to buy the currency pair of interest.
  • If the dodger blue line of the Relative Strength Index Metatrader 4 indicator surges above the 50.00 horizontal level as shown on Fig. 1.0, bulls are said to be driving price higher, hence a signal to buy at once.

Stop Loss for Buy Entry: Place stop loss below the previous swing low price.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If the forex-mt4-trend-indicator pops up a red downward pointing arrow while a bullish trend is ongoing, it is pointing to diminishing bulls power, thus an exit or take profit stance will suffice.
  • If the blue line of the QQE custom indicator dips below the 50.00 reference level while a bullish trend is running, it is a trigger to exit or take profit immediately.
  • If the dodger blue line of the Relative Strength Index indicator declines below the 50.00 reference level (see Fig. 1.0), bulls are said to be closing their positions increasingly, as such an exit or take profit stance will do.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red downward pointing arrow plus candle-like bodies of the forex-mt4-trend-indicator stay somewhat above the price bars as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, therefore a sell alert is said to be imminent.
  • If the blue line of the QQE custom indicator hovers below the 50.00 horizontal level as depicted on Fig. 1.1, the market is said to be in support of bearish sentiments i.e. a signal to sell the forex pair of focus.
  • If the dodger blue line of the Relative Strength Index indicator dips below the 50.00 horizontal level as illustrated on Fig. 1.1, bears are said to be dragging price lower, hence a signal to sell without delay.

Stop Loss for Sell Entry: Place stop loss above the previous swing high price.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the forex-mt4-trend-indicator pops up a blue upward pointing arrow while a bearish trend is running, a bullish reversal is said to be on the horizon, thus a trigger to exit or take profit immediately.
  • If the blue line of the QQE custom indicator surges above the 50.00 horizontal level during a bearish trend, it is a trigger to exit or take profit straightaway.
  • If the dodger blue line of the Relative Strength Index indicator jumps above the 50.00 reference level while a bearish trend is ongoing (check out Fig. 1.1), more and more bears are said to be leaving the market, as such an exit or take profit stance is apt.

Sell Trade Example: EUR/CHF (Euro / Swiss Franc), M30 Chart

Fig. 1.1

Free Download

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About The Forex Technical Indicators Used

The forex-mt4-trend-indicator is a trend indicator just as conveyed within its name, with its red arrows signifying a sell, while its blue arrows connotes a buy signal.

The QQE is short for Qualitative Quantitative Estimation, and represents a Metatrader 4 forex indicator that uses the smoothed Moving Average of Relative Strength Index indicator.

It’s an oscillator that tries to find discrepancies in which price forms a new maximum, while overcoming the level of its previous maximum.

The Relative Strength Index is a momentum indicator that gauges the magnitude of recent price changes to determine overbought or oversold conditions in the price of a forex pair.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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