The trend following indicator Forex trading strategy attempts to isolate and extract profits from price actions.
This strategy can be used successfully in both trending and ranging currency markets.
It is uses a trend following forex histogram and signal indicator to achieve this.
Let’s get started:
MetaTrader4 Indicators: bdfxtrender.ex4 (Default Setting), mega-trend-indicator.ex4 (Inputs Variable Modified; period=70)
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 histograms of the bdfxtrender Metatrader 4 forex indicator pops up within the indicator window as indicated on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated currency pair.
- If the blue line of the mega-trend-indicator stay somewhat below the candlesticks as depicted on Fig. 1.0, bulls are said to be driving price higher, thus it is a signal to go long on the selected fx pair.
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 while a bullish trend is running, the bdfxtrender custom indicator display a red histogram, it is signaling weaning bullish momentum, hence an exit or take profit is advised.
- If the line of the mega-trend-indicator turns red during the course of a bullish trend, the current momentum is said to be losing steam, as such an exit or take profit is recommended.
Sell Entry Rules
Go short if the following setups gets rightly displayed on the activity chart:
- If the red histograms of the bdfxtrender forex indicator takes up space within the indicator window as illustrated on Fig. 1.1, price is said to be dragged lower, as such a sell entry will suffice.
- If the red line of the mega-trend-indicator stays fairly above the candlesticks as seen on Fig. 1.1, bears are said to be pushing price lower, thus it is a signal to go short on the specified currency pair.
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 while a bearish trend is ongoing, the bdfxtrender custom indicator puts up a blue histogram within its window, it is signaling an impending bullish reversal, hence an exit or take profit is recommended.
- If the line of the mega-trend-indicator turns blue while a bearish trend is running, the current price action is said to be altering, as such an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The bdfxtrender.ex4 is a reliable trading indicator that is used in trending and ranging markets.
It also offer signals on various time frames.
The mega-trend-indicator.ex4 is an enhanced Hull Moving Average set to a default period of 144.
It does attempt to eliminate lag altogether, while enhancing smoothing.