Trading Zones Forex Trading Strategy

The Trading Zones Forex trading strategy is designed to capture trading opportunities based on the Fibonacci levels.

The core of the strategy is the use of buy/sell zones which represents price areas watched by a lot of other traders.

The chances of price bouncing off those zones are much likely as a result of the interest other market watchers accord it.

It’s kinda sweet watching how price reacts to such zones, but more interestingly is the ease of trading those zones, especially for the inexperienced.

This strategy has a quick setup time, good profitability and the absence of any clumsiness makes it worth having.

Chart Setup

MetaTrader4 Indicators: autofibo-trading-zones.ex4 (Inputs Variable Modified; Show_StartLine=true, Show_EndLine=true, Show_Channel=true), phase-accumulation-macd.ex4 (Inputs Variable Modified; cyclesFast=0.9, MinMaxPeriod=55)

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 price bars opens and closes above the blue zone of the autofibo-trading-zones Metatrader 4 forex indicator (see Fig. 1.0), price is said to be driven to the upside i.e. a trigger to go long on the designated forex pair.
  2. If the dim gray line & deep sky blue histograms of the phase-accumulation-macd indicator breaksabove the 0.00 signal level as shown on Fig. 1.0, price is said to be pressured to the upside, therefore a buy trigger will suffice.

Stop Loss for Buy Entry: Place stop loss below blue support area.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price closes inside the fire brick colored zone of the autofibo-trading-zones custom indicator during a bullish trend (refer to Fig. 1.0), it is signaling weaning bulls power, therefore an exit or take profit is duly recommended.
  2. If the dim gray line of the phase-accumulation-macd indicator falls below the 0.00 floating level while a bullish trend is ongoing, more bulls are said to be leaving the market, thus an exit or take profit will suffice.

Sell Entry Rules

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

  1. If price bars opens and closes below the fire brick colored zone of the autofibo-trading-zones indicator as exemplified in Fig. 1.1, price momentum is said to be bearish i.e. a trigger to go short on the selected currency pair.
  2. If the dim gray line & sandy brown histograms of the phase-accumulation-macd indicator breaksbelow the 0.00 floating level as seen on Fig. 1.1, price is said to be taken lower i.e. a sell alert will suffice.

Stop Loss for Sell Entry: Place stop loss above red resistance area.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price closes inside the blue zone of the autofibo-trading-zones custom indicator while a bearish trend is running, bears power is said to be halting, therefore an exit or take profit is duly advised.
  2. If the dim gray line of the phase-accumulation-macd indicator surges above the 0.00 floating level while a bearish trend is on course, bears are said to be closing their trades in their droves, thus an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the Trading Zones Forex Trading Strategy

About The Trading Indicators

The autofibo-trading-zones.ex4 is a custom indicator that clearly defines bullish (blue colored area) and bearish (fire brick colored area) price zones.

The phase-accumulation-macd.ex4 indicator is a momentum oscillator indicator with floating levels and is known to scan the market for profitable trends.

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