The Super Trend Reversal Points forex strategy is an aggressive trend reversal trading system that is suitable for beginners and experts alike.
The core of this strategy is the popular bb-stops-v2-indicator that is formed by reversal signals.
Furthermore, it becomes easier to catch trends when they shift from ascending mode to descending more and vice versa.
In conjunction with our trading rules, buy and sell signals are generated when both indicators are trading in agreement.
There’s an increased likelihood of success if traders adhere to the trading rules based on our predetermined price patterns.
Chart Setup
MetaTrader4 Indicators: bb-stops-v2-indicator.ex4 (Inputs Variable Modified; Bands period=32, Bands deiation=2.0, Band risk=0.1), MACD.ex4 (Default Setting)
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:
- If the lime green line of the bb-stops-v2-indicator stays slightly below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated forex pair.
- If the silver histograms of the MACD Metatrader 4 indicator hovers above the 0.00 horizontal signal level as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to go long on the selected currency pair.
Stop Loss for Buy Entry: Place stop loss below the most recent swing low price level.
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 running, the line of the bb-stops-v2-indicator turns orange red, price is said to be making a probable U-turn, thus an exit or take profit is recommended.
- If the silver histogram of the MACD custom indicator readjust to form below the 0.00 reference level, it is indicative of a likely bearish reversal i.e. a trigger to exit or take profit at once.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the orange red line of the bb-stops-v2-indicator stays aligned somewhat above the price bars as depicted on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected currency pair.
- If the silver histograms of the MACD indicator hovers below the 0.00 horizontal alert line as shown on Fig. 1.1, the general market sentiment is said to be bearish, as such an exit or take profit stance will suffice.
Stop Loss for Sell Entry: Place stop loss above the most recent swing high price level.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during a bearish trend, the line of the bb-stops-v2-indicator turns lime green as seen on Fig. 1.1, more bears are said to be leaving the market, thus an exit or take profit will do.
- If the silver histogram of the MACD custom indicator realign to stay above the 0.00 reference line, it is indicative of a likely bullish reversal i.e. a trigger to exit or take profit forthwith.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The bb-stops-v2-indicator.ex4 is a modified Bollinger Bands indicator that is used to determine trend exhaustion, as well as reversals.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.