Squeeze Trend Forex Trading Strategy

The Squeeze Trend Forex trading strategy is a trading system that determines sessions where the market moves to an extreme value within a given space of time.

Moves of this nature are known to offer traders some good trading opportunities for turning a good profit.

These market conditions can be spotted in any traded currency pair at almost any time.

Due to the significant volume that is attributed to the forex market, adopting the Squeeze Trend Forex trading strategy is critical to growth.

Our trading rules can be triggered during unexpected event risk or in the course of technical occurrence like the breaching of a support or resistance level.

Chart Setup

MetaTrader4 Indicators: bbsqueeze-dark.ex4 (Inputs Variable Modified; keltFactor=2.0), moving-average-ribbon.ex4 (Inputs Variable Modified; MA1Period=9, MA2Period=24, MA2Method=1)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If the blue and dark blue histograms of the bbsqueeze-dark Metatrader 4 forex indicator stay above the 0.00 center line as depicted on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the selected forex pair.
  2. If the green upward pointing arrow of the moving-average-ribbon indicator pops up somewhat below the price bars, while a black cloud subsequently forms below price (see Fig. 1.0), it is a signal to buy the currency pair of focus.

Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a bullish trend is ongoing, a red histogram of the bbsqueeze-dark indicator forms below the 0.00 horizontal center line as designated on Fig. 1.0, price is said to be making a likely U-turn i.e. a trigger to exit or take profit at once.
  2. If the red downward pointing arrow of the moving-average-ribbon indicator pops up above the candlesticks while a bullish trend is ongoing, bulls power is said to be weaning, therefore an exit or take profit is recommended.

Sell Entry Rules

Go short if the following setups gets displayed rightly on the activity chart:

  1. If the red and maroon histograms of the bbsqueeze-dark indicator stay below the 0.00 horizontal line as exemplified on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the currency pair of interest.
  2. If the red downward pointing arrow of the moving-average-ribbon custom indicator pops up slightly above the candlesticks, while a black cloud forms above price (refer to Fig. 1.1), it is a signal to go short on the selected forex pair.

Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If during the course of a bearish trend, the bbsqueeze-dark indicator displays a blue histogram above the 0.00 horizontal center line as depicted on Fig. 1.1, price is said to be making a probable bullish reversal i.e. a trigger to exit or take profit immediately.
  2. If the green upward pointing arrow of the moving-average-ribbon indicator pops up below the candlesticks during a bearish trend, bears power is said to be halting, therefore an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The bbsqueeze-dark.ex4 is a modified Bollinger Bands indicator that uses histograms to gauge volatility.

The moving-average-ribbon.ex4 indicator is a price cloud based moving average indicator, which also indicates the start of every trend using a green or red arrow.

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