We’ll be discussing the Urban Forex trading strategy and as the name suggests, it is a trading strategy designed for traders who really do not want to be bothered by an overly complicated market strategy.
The Urban trading strategy follows the trend and increases its win rate with the adoption of the very versatile Ichimoku Kinko Hyo indicator.
The strategy focuses on triggering trade signals when two forex indicators are showing safe matching trade setups.
The Urban buy/sell trade setups are very much applicable on both higher and lower timeframes and can be applied to a wide range of asset class asides forex.
MetaTrader 4 Indicators: Ichimoku Kinko Hyo.ex4 (Colors Modified; Tenkan-sen=None, Kijun-sen=None, Chikou-Span=None), Trend_Mirror.ex4 (Inputs Variable Modified; MovingPeriod=36, MovingShift=2)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: GBP/USD (British Pound / US Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the sandy brown cloud of the Ichimoku Kinko Hyo Metatrader 4 forex indicator stayssomewhat below the candlesticks as seen on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert is said to be looming.
- If the red line of the Trend_Mirror custom indicator crosses above its blue line to run above the zero horizontal level as shown on Fig. 1.0, price is said to be driven to the upside, thus a trigger to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the Ichimoku Kinko Hyo forex indicator displays a thistle cloud while a bullish trend is running, bulls are said to be leaving the market in their droves, as such an exit or take profit stance will suffice.
- If the blue line of the Trend_Mirror indicator breaks above the 0.00 horizontal level during a bullish trend (see Fig. 1.0), it is signaling a likely end in bullish sentiments, thus an exit or take profit stance is duly recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the thistle cloud of the Ichimoku Kinko Hyo forex indicator staysfairly above price bars as illustrated on Fig. 1.1, bears are said to be driving prices lower, therefore a signal to go short on the currency pair of interest.
- If the blue line of the Trend_Mirror custom indicator crosses above its red line to run above the zero horizontal level as depicted on Fig. 1.1, overall market sentiment is said to be bearish, thus a trigger to sell the selected forex pair.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Ichimoku Kinko Hyo technical indicator pops up a sandy brown cloud during the course of a bearish signal alert, bears power is said to be diminishing, hence a trigger to exit or take profit without delay.
- If the red line of the Trend_Mirror indicator surges above the 0.00 horizontal level while a bearish trend is ongoing (refer to Fig. 1.1), more and more bears are said to be closing their positions, thus a signal to exit or take profit at once.
Sell Trade Example: GBP/USD (British Pound / US Dollar), H1 Chart
About The Forex Technical Indicators Used
The Ichimoku Kinko Hyo indicator is an appropriate technical tool, particularly for newbies who want to understand trend momentum, direction, pinpointing reversals and locating entry levels on the forex chart.
The Trend_Mirror is an important custom indicator that delivers buy and sell signal when the red line crosses its blue line.
Start using this forex strategy in just 5 minutes. Click here to get started now.