Railway Trigger Forex Trading Strategy

The Railway Trigger forex trading strategy is a price action trading strategy that can be applied when the market is in a trend and is considering a reversal.

If you see this price action information when the market is pricing sideways, then it is crucial that you ignore it.

Chart Setup

MetaTrader4 Indicators: Triggerlines.ex4 (default setting)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Railway Trigger Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the railway tracks price action pattern forms following to a bearish trend in the market, it is an indication of a possible price reversal i.e. a trigger to go long on the currency of interest. Notice that the railway tracks price action pattern for a bullish signal is based on candle 1 & 2 as depicted on Fig. 1.0 (two identical candlesticks that look like parallel railway tracks).
  2. If price bars forms above the lines of the Triggerlines.ex4 custom indicator, while the lines of the indicator get painted blue, it is an indication that price is rising i.e. a trigger to buy the pair of focus.

Stop Loss for Buy Entry: Place stop loss 2-5 pips below the low of the pattern.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions holds sway on the activity chart:

  1. If the lines of the Triggerlines.ex4 custom indicator turns red during an uptrend as shown on Fig. 1.0, it is an indication that bulls are exiting their position(s), hence a trigger to exit or take profit accordingly.

Sell Entry Rules

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

  1. If the railway tracks price action pattern forms following to a bullish trend in the market, it is an indication of a possible price reversal i.e. a trigger to go short on the currency of interest. Notice that the railway tracks price action pattern for a bearish signal is dependent on candle 1 & 2 as shown on Fig. 1.1 (two identical candlesticks that look like parallel railway tracks, a bullish candle followed by a bearish one).
  2. If price bars forms below the lines of the Triggerlines.ex4 custom indicator, while the lines of the indicator get painted red, it is an indication that price is dipping i.e. a trigger to sell the currency of interest.

Stop Loss for Sell Entry: Place stop loss 2-5 pips above the high of the pattern.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions apply on the chart window:

  1. If the lines of the Triggerlines.ex4 custom indicator turns blue during a downtrend as displayed on Fig. 1.1, it is an indication that the bears are shutting their position(s), hence a trigger to exit or take profit accordingly.

Sell Trade Example

Fig. 1.1

Free Download

Download the Railway Trigger Forex Trading Strategy

About The Trading Indicators

The Triggerlines.ex4 is a custom indicator that is designed after the moving average but is comprised of two lines, with changing colors, red for bearish signal and blue for bullish alert.

The Railway tracks price action pattern is a two candlesticks pattern that are of approximately the same length and look like parallel railway tracks.

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