The ForexKingle day trading strategy for Metatrader 4 is designed to help day traders profit from the volatile up and down moves that occur on a daily basis.
Day traders can make profits from both short and long trades in any currency pair and other assets such as cryptocurrencies.
Trade Setup
MT4 Indicators: alternative-ichimoku.ex4 (Colors Modified; #4=Yellow, #5=Lime, Colors Width Modified; #4=2), alligator-signal-indicator.ex4 (Default Setting), MACD.ex4 (Default Setting)
Suitable for: Scalping, day trading
Trading Time: 24/7, Around the Clock
Time frames: Any
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Buy Trade Example: BTC/USD (Bitcoin / US Dollar), M5 Chart
Fig. 1.0
Strategy Rules
Buy Signal
Open a buy trade if the following trading conditions appear on the technical chart:
- If the yellow line of the alternative-ichimoku MT4 indicator crosses below the lines (green, red & blue) of the alligator-signal-indicator as shown on Fig. 1.0, the Bitcoin price is said to be pushed somewhat higher i.e. a trigger to buy the designated cryptocurrency.
- If the silver histograms of the MACD Metatrader 4 indicator pops up above the 0.00 horizontal level as illustrated on Fig. 1.0, the BTC/USD cryptocurrency is said to be experiencing upward pressures, thus a trigger to go long.
Suggested Stop Loss for Buy Trade: Place stop loss below short-term support.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions appear on the chart:
- If while a bullish trend is ongoing, the yellow line of the alternative-ichimoku MT4 indicator crosses above the lines (green, red & blue) of the alligator-signal-indicator, it is a signal to exit or take profit at once.
- If the silver histograms of the MACD indicator readjust to appear below the 0.00 level as seen on Fig. 1.0, bullish BTC/USD momentum is said to be diminishing, therefore an exit or take profit will suffice.
Sell Signal
Open a sell trade if the following trading conditions appear on the chart:
- If the yellow line of the alternative-ichimoku MT4 indicator crosses above the lines (green, red & blue) of the alligator-signal-indicator as exemplified on Fig. 1.1, the Bitcoin price is said to be dragged lower i.e. a trigger to sell the selected cryptocurrency.
- If the silver histograms of the MACD indicator aligns below the 0.00 horizontal level as depicted on Fig. 1.1, bearish pressures is said to be building within the BTC/USD crypto chart, thus a trigger to go short.
Suggested Stop Loss for Sell Trade: Place stop loss above short-term resistance.
Suggested Exit Strategy/Take Profit for Sell Trade
Exit the sell trade if the following trading conditions appear on the chart:
- If during a bearish trend, the yellow line of the alternative-ichimoku MT4 indicator crosses below the lines (green, red & blue) of the alligator-signal-indicator, it is pointing to diminishing bears power within the BTC/USD price structure, hence an exit or take profit stance is recommended.
- If the silver histograms of the MACD indicator realigns to pop up above the 0.00 level as seen on Fig. 1.1, a bullish reversal is said to be likely within the BTC/USD, as such an exit or take profit will do.
Sell Trade Example: BTC/USD (Bitcoin / US Dollar), M5 Chart
Fig. 1.1
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About The Technical Indicators Used
The alternative-ichimoku MT4 indicator was designed as an alternative to the well-known indicator Ichimoku Kinko Hyo.
The indicator is used to gauge momentum in line with likely areas of support and resistance on the chart.
The alligator-signal-indicator for MT4 is a modified Bill Williams indicator.
The indicator is comprised of three lines that overlay on the chart.
The lines represent the jaw (blue line), the teeth (red line) and the lips (green line) of the Alligator.
Day traders tend to use this indicator to gauge trend and its probable direction.
The MACD is a default indicator found on the MT4 platform.
It is a multipurpose tool deployed in identifying and following strong trends in cryptocurrencies while also catching trend reversals fast.