Trigger Factor Forex Trading Strategy

Forex trading is an interesting adventure and scalpers always are on the lookout for opportunities in the market.

The Trigger Factor trading strategy was designed to allow traders who scalp scan for profitable forex trades within low spread currency pairs.

Stick to the M1, M5 and M15 trading charts when deploying this strategy.

Chart Setup

MetaTrader4 Indicators: TTF_-_trigger_factor.ex4 (default setting), JMA.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes

Recommended Trading Sessions: New York Open | London Open

Currency Pairs: Low spread pairs, max. 4 pips.

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following rules or conditions holds true:

  1. If price opens and closes above the red line of the JMA custom indicator, it is an indication that price is being pressured higher, as such a buy signal is in place.
  2. If the lines (light sea green and red) of the TTF_-_trigger_factor.ex4 custom indicator breaks above the zero level as shown on Fig. 1.0 and hover above this level, price is said to be pressured higher i.e. a buy signal is ripe.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following indicator or chart patterns are on display:

  1. If price closes below the red line of the JMA custom indicator a depicted on Fig. 1.0, it is an indication that bullish pressures are coming to an end, as such an exit or take profit will suffice.
  2. If the lines (light sea green and red) of the TTF_-_trigger_factor.ex4 custom indicator breaks below the zero signal level, price is said to be experiencing a likelihood of resumption in bears market. It is advisable to exit or take profit on position(s) entered.

Sell Entry Rules

Enter a sell in the market of the following rules or conditions take precedence:

  1. If price opens and closes below the red line of the JMA custom indicator as seen on Fig. 1.1, it is an indication that price is being pushed lower i.e. a trigger to sell the asset of choice.
  2. If the lines (light sea green and red) of the TTF_-_trigger_factor.ex4 custom indicator pushes below the zero level as shown on Fig. 1.1 and stays below this level, the sentiment in the market is said to be bearish i.e. a sell signal is appropriate.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following indicator or chart patterns are on display:

  1. If price closes above the red line of the JMA custom indicator as illustrated on Fig. 1.1, it is an indication that bears are exiting or limiting their position(s), an exit or take profit is appropriate.
  2. If the lines (light sea green and red) of the TTF_-_trigger_factor.ex4 custom indicator breaks above the zero signal level, price is said to be witnessing the possible resumption in bulls market. It is advisable to exit or take profit on position(s) entered.

Fig. 1.1

Free Download

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About The Trading Indicators

The TTF_-_trigger_factor.ex4 custom indicator is also referred to as the Trend Trigger Factor Indicator and holds a lot of similarity to the RSI indicator.

It is deployed in trend identification and uses an n number of price periods to compute trend direction.

The Jurik Moving Average (JMA) has an improved timing and smoothness, while tracking the chart’s quick up/down gapping action.

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