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Simple Winning Forex System

    A simple winning forex system composed of two metatrader 4 indicators.

    The first indicator is trend following in nature while the second indicator oscillates between two extreme values, overbought and oversold territory.

    Chart Setup

    Indicators: forex-mt4-trend-indicator, laquerre
    Preferred time frame(s): 1 hour and above
    Trading sessions: any
    Preferred Currency pairs: any

    Download

    Download the Simple Winning Forex System.

    Example: USD/JPY 4 Hour Chart

    simple-winning-forex-system

    As shown in the chart above, this system issued 3 winning signals and 2 small losses.

    Trading Rules

    Buy Scenario:

    • Trend indicator generates Blue Up arrow (trend turns bullish).
    • Laquerre indicator turns back above 0.15 from below.

    ==> Open buy at the open of the next candlestick.

    Stop-Loss: Place a low risk stop below the most recent swing low.

    Buy exit strategy 1: Close the trade when the Laquerre oscillator reaches 1.05 (overbought).
    Buy exit strategy 2: Close the trade at risk-to-reward 1:2 or better.
    Buy exit strategy 3: Hold the buy trade until an opposite trading signal (sell) is given.

    Sell Scenario:

    • Trend indicator generates Red Down arrow (trend turns bearish).
    • Laquerre indicator turns back below 0.75 from above.

    ==> Open sell at the open of the next candlestick.

    Stop-Loss: Place a low risk stop above the most recent swing high.

    Sell exit strategy 1: Close the trade when the Laquerre oscillator reaches 0.00 (oversold).
    Sell exit strategy 2: Close the trade at risk-to-reward 1:2 or better.
    Sell exit strategy 3: Hold the sell trade until an opposite trading signal (buy) is given.