Woodies Forex Trading Strategy

The Woodies forex trading strategy is a combination of the All woodies cci v1.0 MT4 custom indicator, Exponential Moving Average (50) and the ADX Candles custom indicator.

This strategy is able to identify cyclical trends in a currency pair and can invariably lead to more profits.

Chart Setup

MetaTrader4 Indicators: All woodies cci v1.0.ex4 (bars Per Time Frame modified = 2000), EMA (50), ADX Candles.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours

Recommended Trading Sessions: any

Currency Pairs: Any

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Buy Trade Example (Click the image for full size)

woodies-forex-trading-strategy

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy order when the following conditions are in place:

  1. If the All woodies cci v1.0 MT4 custom indicator forms blue bars and its LimeGreen line above the 0.00 level, it means a buy signal is underway in the market.
  2. If the ADX Candles turns lime, it signals a bulls market.
  3. If the red EMA (50) line forms below price candles and a candlestick opens and closes above its line, it depicts a bullish market.

Stop Loss for Long Entry: Enter stop loss below the most recent key support level.

Exit Strategy/Take Profit for Long Entry

The following conditions or rules will define an exit or take profit on open position(s):

  1. Watch for the red bars and LimeGreen line of the All woodies cci v1.0 MT4 custom indicator, if they form below the 0.00 level, it is an exit or take profit trigger.
  2. If the ADX candles turns red and closes below the red EMA (50) line, position(s) should be exited or closed accordingly.
  3. If the red EMA (50) line forms above price bars, it is a signal that price pressures are in favor of a downward push.

Sell Entry Rules

Enter a sell order when the following chart patterns are in display:

  1. If the All woodies cci v1.0 MT4 custom indicator red bars and its LimeGreen line forms below the 0.00 level, a sell is advised.
  2. If the ADX Candles turns red, it is a bearish trigger.
  3. If the red EMA (50) line forms above price bars, it is a signal that price is being pushed lower i.e. a sell market.

Stop Loss for Sell Entry: Enter stop loss above the most recent key resistance level.

Exit Strategy/Take Profit for Sell Entry

Exit position(s) if the following chart or indicator patterns are in display:

  1. If the LimeGreen line and blue bar of the All woodies cci v1.0 MT4 custom indicator shows up above the 0.00 level, an exit or take profit is suited.
  2. If the ADX Candles turns Lime and closes above the EMA (50) line, open positions should be exited or closed.
  3. If the red line of the EMA (50) MT4 indicator forms below price curve, it is a reversal signal and as such open orders should be exited or closed.

woodies-forex-trading-system

Fig. 1.1

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About The Trading Indicators

The All woodies cci v1.0.ex4 is an oscillator that is deployed in isolating cyclical trends in forex pairs.

The “Woodie” is a name of a day trader with over 30 years of experience who designed this system in line with the number of patterns occurring on the Commodity Channel Index.

The EMA (50) is a tool we’ve added to give more weight to the most recent data.

Finally, the ADX Candles.ex4 fills the candlesticks with red, darkgreen and lime colors, with each denoting a bearish, consolidating and bullish market respectively.

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