The Strong Trend Forex Trading strategy discussed here is universal to all forex pairs and works on all available timeframes.
It’s a great trend following strategy that takes advantage of new trends forming after trend reversals.
Let’s move forward and get into the basics of this strategy and see how it can help you make money when trading.
MetaTrader 4 Indicators: bstrend-indicator.ex4 (Inputs Variable Modified; period=24), linear-regression-indikator.ex4 (Inputs Variable Modified; period=50, price=3)
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 deep sky blue vertical bars of the bstrend-indicator stay aligned somewhat above the 0.00 reference level as shown on Fig. 1.0, the general market sentiment is said to be bullish, therefore a buy alert will suffice.
- If the linear-regression-indikator line turns green, it is signaling heightened bullish price pressures, as such a buy order is duly recommended.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If while a bullish trend is runningand the bstrend-indicator displays a violet vertical bar that sits below the 0.00 signal level as seen on Fig. 1.0, more bulls are said to be closing their positions, therefore an exit or take profit is advised.
- If the linear-regression-indikator line reverts to redduring the course of a bullish signal, it is vividly pointing to a weaning bulls power, thus an exit or take profit is recommended.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the violet vertical bars of the bstrend-indicator stay aligned a bit below the 0.00 reference level as depicted on Fig. 1.1, the overall market sentiment is said to be bearish, therefore a trigger to sell the designated forex pair.
- If the linear-regression-indikator line turns red, it is signaling sharp bearish price pressures, hence a sell order will do.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is ongoingand the bstrend-indicator displays a deep sky blue vertical bar that rests above the 0.00 horizontal level, more bears are said to be leaving the market, therefore an exit or take profit is recommended.
- If the linear-regression-indikator line turns greenduring the course of a bearish signal (see Fig. 1.1), it is clearly pointing to a diminishing bears power, thus an exit or take profit stance is appropriate.
Sell Trade Example
About The Trading Indicators
The bstrend-indicator for MT4 is a trend following forex indicator that works for any timeframe.
The linear-regression-indikator is built on the basis of moving averages but designed to perform much faster.