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
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.