The Yang Trader forex trading strategy is a scalping system that is deployed to generate profits on the 5-minutes charts.
The system employs three technical studies in generating accurate signals i.e. trend lines and two trading indicators.
MetaTrader4 Indicators: ZigZag.ex4 (default setting), YangTraderMain.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: any low spread pair such as EUR/USD, USD/JPY, GBP/USD,…
Buy Trade Example (Click the picture to enlarge)
Long Entry Rules
Place a long entry if the following chart or indicator pattern are on display:
- The ZigZag custom indicator is deployed to gives points on the chart where we can plot higher lows and lower highs for a more accurate channel. The blue lines represent the channel plotted the points as stated earlier. A bullish signal is issued when price breaks above the upper channel as seen on Fig. 1.0.
- The bullish trend can be further supported by a dodgerblue upward pointing arrow of the YangTraderMain custom indicator is formed below price bars, a bullish trend is highly anticipated.
Stop Loss for Buy Entry: Place stop loss ~ 5 – 15 pips below entry price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on position(s) if the following chart pattern is on display:
- Watch out for the ZigZag custom indicator trend line, if it forms a descending pattern, it is an indication that price is pressured lower, thus a valid move for an exit or take profit.
- If a red downward pointing arrow of the YangTraderMain custom indicator forms above price bar, it signals that price is on its way down and we recommend an exit or take profit accordingly.
- If price suddenly breaks below the upper trendline of the channel, it is an indication that price is heading south.
Sell Entry Rules
Enter a sell position if the following rules or conditions are met:
- If price breaks below the lower trendline of the channel as seen on Fig. 1.1, it is an indication that price is pressured lower, thus giving way to a sell.
- If a red downward pointing arrow of the of the YangTraderMain custom indicator forms above price bars, it further supports a bearish trend.
Stop Loss for Sell Entry: Place stop loss ~ 5 – 15 pips above entry price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit under the following conditions:
- If the ZigZag custom indicator trend line forms an ascending trendline, it is a reversal signal.
- If the dodgerblue upward pointing of the YangTraderMain custom indicator arrow forms below price bars, it is a signal that price is making a U-turn.
- If price suddenly breaks above the lower trendline channel, it signals a strong opposite trend is forming
About The Trading Indicators
The ZigZag.ex4 custom indicator is designed to track and link extreme points on the activity chart, offering traders one of the easiest ways to plot trend lines.
The YangTraderMain.ex4 custom indicator is an oscillator which deploys red or blue arrows above or below price bars to depict bearish or bullish trend respectively.
Finally, the trend line is a technical study that allows traders automatically plot trend lines on chart.