Magic Forecaster Forex Trading Strategy
The market offers some convenient trading sessions, which is obviously dependent on the forex pair that is being traded.
There are pairs that are heavily traded at certain times of the day based on the countries that have their floors open for business.
For simplicity, we have designed the Magic Forecaster forex trading strategy that allows you trade the currency market conveniently at all times, based on when the tradable setups tally with our rules.
The Trend Magic and FXForecaster custom indicators are necessary ingredient that allows for easy trend recognition and price reversal.
MetaTrader4 Indicators: Trend Magic.ex4 (Default Setting), FXForecaster.ex4 (Inputs Variable Modified; fastEMA16, slowEMA=32, signal=12, period=24)
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
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the line of the Trend Magic custom indicator turns blue while slightly staying below the candlesticks (see Fig. 1.0), price is said to be pushed higher, as such a buy signal is said to be looming.
- If the violet and black histograms of the FXForecaster custom MT4 platform gets positioned above the 0.00 level as depicted on Fig. 1.0, a trigger to go long is said to be imminent.
Stop Loss for Buy Entry: Place stop loss 3 pips below trading support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the line of the Trend Magic custom indicator turns red during a buy signal, it is an indication of weaning bulls power, as such an exit or take profit is advised.
- If a violet or black histogram gets seen below the 0.00 level (refer to Fig. 1.0) during a bullish signal, it is an indication of a possible bearish reversal, as such an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the line of the Trend Magic custom indicator turns red while slightly staying above the candlesticks (see Fig. 1.1), price is said to be taken lower, as such a sell signal is said to be approaching.
- If the violet and black histograms of the FXForecaster custom MT4 platform gets placed below the 0.00 level as illustrated on Fig. 1.1, a trigger to go short is said to be in the offing.
Stop Loss for Sell Entry: Place stop loss 3 pips above trading resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If the line of the Trend Magic custom indicator turns blue during a sell alert, it is an indication of halting bears power, as such an exit or take profit is recommended.
- If a violet or black histogram gets seen above the 0.00 level as illustrated on Fig. 1.1 while a bearish signal is ongoing, it is an indication of a possible bullish reversal, as such an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The Trend Magic custom indicator is a trend following indicator that combines both the CCI and the ATR indicators.
The FXForecaster uses violet and black histograms to define its signal system, where a buy signal or sell signal is said to occur when the violet histogram is above or below the 0.00 mark respectively.