The Starlight Pips Forex trading strategy offers traders the opportunity of getting better entries and exits for any currency pair.
As a result, currency traders stand a chance of winning more pips in the foreign exchange market.
The Starlight Pips Forex trading strategy will perform beautifully in trending and volatile market conditions.
This strategy is based on three candles forming in the same direction that can lead to a shift in momentum.
Moreover, we’ve added a second indicator to filter out noise (reducing false signals).
It is important to keep in mind that the higher the time frame, the more likely there is validity to the signal.
MetaTrader4 Indicators: 3rdcandle-indicator.ex4 (Inputs Variable Modified; ShiftArrow=120, FilterBullBearCandle=true), kuskus-starlight-indicator.ex4 (Inputs Variable Modified; RangePeriods=40)
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
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the blue upward pointing arrow of the 3rdcandle-indicator Metatrader 4 custom indicator gets positioned below the candlesticks as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated currency pair.
- If the blue star light signals of the kuskus-starlight-indicator hovers above the 0.00 signal level (see Fig. 1.0), price is said to be experiencing bullish momentum, and as such a buy order will suffice.
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:
- If a red downward pointing arrow of the 3rdcandle-indicator gets positioned above price bars during a bullish signal as illustrated on Fig. 1.0, bulls power is said to be weaning, hence an exit or take profit will suffice.
- If the kuskus-starlight-indicator displays a red star light signal that pops up below the zero reference level while a bullish trend is running, it is a call to exit or take profit forthwith.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the red downward pointing arrow of the 3rdcandle-indicator Metatrader 4 custom indicator pop up on the activity chart as depicted on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
- If the red star light signals of the kuskus-starlight-indicator forms below the 0.00 signal level (refer to Fig. 1.1), price is said to be pressured to the downside i.e. a trigger to go short on the currency pair of interest.
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:
- If a blue upward pointing arrow of the 3rdcandle-indicator gets aligned slightly below price bars during a bearish signal as exemplified on Fig. 1.1, bears power is said to be halting, hence an exit or take profit will do.
- If the kuskus-starlight-indicator displays a blue star light signal that pops up above the zero center line while a bearish trend is ongoing, it is a signal to exit or take profit without delay.
Sell Trade Example
About The Trading Indicators
The 3rdcandle-indicator.ex4 is a technical tool that filters buy and sell market sentiments during trading, by spotting three candles that form in the same direction.
The kuskus-starlight-indicator.ex4 is an oscillator that helps traders determine when momentum is bullish, bearish or when the market is approaching range bound market conditions.