Big Candles Index Forex Trading Strategy

The foreign exchange market will burn those that are ill-prepared and reward those that are equipped with the right tools.

The Big Candles Index forex trading strategy is a great tool designed to reward market participants who adhere to the easy to understand predefined rules.

There’s little or nothing that can deter you from making profits if you stick to the rules.

Each indicator used in this strategy represents a specific role in spotting trends in its formative stages and pinpointing exhaustion levels.

Chart Setup

MetaTrader4 Indicators: MACD Trend Candles v3.ex4 (Default Setting), (T_S_R)-Big Trend.ex4 (Default Setting), Force Index.ex4 (Parameters Modified; Period=32)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern is on display:

  1. If the light blue line of the (T_S_R)-Big Trend custom indicator is aligned somewhat below the candlesticks as seen on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the stipulated currency pair.
  2. If the lime candles of the MACD Trend Candles v3 custom indicator gets spotted on the activity chart, a buy signal is said to be looming.
  3. If the light sea green line of the Force Index breaks and stays above the 0.00 level as depicted on Fig. 1.0, a buy signal is said to be imminent.

Stop Loss for Buy Entry: Place stop loss 2-5 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the line of the (T_S_R)-Big Trend custom indicator turns tomato in the face of a buy signal, an exit or take profit is duly advised.
  2. If the candles of the MACD Trend Candles v3 custom indicator turns red while a buy signal is running, bull power is said to be weaning, hence an exit or take profit will suffice.
  3. If the light sea green line of the Force Index dips below the 0.00 level, price is said to be making a U-turn away from its earlier bullish stance, hence an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the tomato line of the (T_S_R)-Big Trend custom indicator is aligned slightly above the candlesticks as depicted on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the selected forex pair.
  2. If the red candles of the MACD Trend Candles v3 custom indicator gets spotted on the activity chart, a sell signal is said to be approaching.
  3. If the light sea green line of the Force Index dips and stays below the 0.00 level as depicted on Fig. 1.1, a sell alert is said to be in the offing.

Stop Loss for Sell Entry: Place stop loss 2-5 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the line of the (T_S_R)-Big Trend custom indicator turns light blue in the face of a sell alert, an exit or take profit is duly recommended.
  2. If the candles of the MACD Trend Candles v3 custom indicator turns lime while a sell signal is ongoing, bear power is said to be halting, hence an exit or take profit will do.
  3. If the light sea green line of the Force Index surges above the 0.00 level, price is said to be making a reversal away from its earlier bearish stance, hence a trigger to exit or take profit.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The MACD Trend Candles v3 is a modified Moving Average Convergence Divergence indicator that colors the candles to depict market trends.

The (T_S_R)-Big Trend or Terminate and Stay Resident Big Trend custom indicator is a moving average line with a default period 80.

The Force Index is an MT4 indicator that was developed by Alexander Elder, and it deploys price and volume to gauge the strength behind a move or spot conceivable reversal points.

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