Envelopes Forex Trading Strategy

The ability to own a trading strategy that almost guarantees success is every trader’s delight and the Envelopes forex trading strategy is designed to deliver just that.

The Envelopes forex trading strategy uses the envelopes indicator to define the bull or bear trend in any currency pair.

The custom Hotpips indicator delivers accurate signals in the direction of the envelopes bull or bear forex trend.

Chart Setup

MetaTrader4 Indicators: HotPips.ex4 (Default Setting), Envelopes.ex4 (Parameters Modified; Period=28, MA method=Exponential)

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

Download the Envelopes Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets on display:

  1. If price open and closes above the red line of the Envelopes MT4 indicator as indicated on Fig. 1.0, price is said to be pressured higher i.e. a trigger to buy the designated currency pair.
  2. If the yellow upward pointing arrow of the HotPips custom indicator is seen on display within its window as shown on Fig. 1.0, the overall sentiment in the market is said to be bullish, hence a buy trigger is looming.

Stop Loss for Buy Entry: Place stop loss below the rising red line.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a buy order is ongoing, price closes below the red line of the Envelopes MT4 indicator, an exit or take profit is duly recommended.
  2. If the aqua downward pointing arrow of the HotPips custom indicator gets aligned within the indicator window as depicted on Fig. 1.0, bull’s power is said to be weaning i.e. a trigger to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If price open and closes below the blue line of the Envelopes MT4 indicator as illustrated on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the selected forex pair.
  2. If the aqua downward pointing arrow of the HotPips custom indicator gets on display within its window as depicted on Fig. 1.1, the general sentiment in the market is said to be bearish, hence a sell signal is imminent.

Stop Loss for Sell Entry: Place stop loss above falling blue line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell order is running, price closes above the blue line of the Envelopes MT4 indicator, an exit or take profit is duly advised.
  2. If the yellow upward pointing arrow of the HotPips custom indicator gets spotted within the indicator window as shown on Fig. 1.1, bears power is said to be halting i.e. a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

Download the Envelopes Forex Trading Strategy

The HotPips.ex4 custom indicator employs the yellow and aqua arrow in delivering buy or sell signals respectively.

In addition to this is the blue histogram tainted at the top with red and at the bottom area with lime, positioned above or below the 0.00 level to further mark bullish or bearish signals.

The Envelopes MT4 indicator is a trend indicator that is built after the moving averages and is also tagged a moving average envelopes.

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  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
  • Learn And Trade This Strategy In only 10 Minutes