The Percentage Crossover Signal forex trading strategy will allow you profit from price appreciation/depreciation in a low risk fashion.
The indicators that make up this strategy are efficient and will simply get the job done of generating long-term profits.
The EMA Crossover Signal custom indicator is added to aid you measure trend, while the Williams’ Percentage Range MT4 indicator is an oscillator that does well in signaling reversal period.
Long/short term traders will find this an invaluable strategy that can be deployed on most timeframes.
Chart Setup
MetaTrader4 Indicators: EMA Crossover Signal.ex4 (Inputs Variable Modified; FasterEMA=25, SlowerEMA=30, Colors Width Modified; #0=2, #1=2), Williams’ Percentage Range.ex4 (Parameters Modified; Period=56)
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
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets displayed:
- If the spring green upward pointing arrow of the EMA Crossover Signal custom indicator gets spotted slightly below the candlesticks as seen on Fig. 1.0, price is said to be driven higher i.e. a trigger to go long on the designated currency pair.
- If the blue line of the Williams’ Percentage Range MT4 indicator breaks and stays above the -50.00 level as seen on Fig. 1.0, the overall market sentiment is said to be bullish, hence a trigger to go long.
Stop Loss for Buy Entry: Place stop loss 3 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If while a buy signal is ongoing, the EMA Crossover Signal custom indicator forms a red downward pointing arrow as shown on Fig. 1.0, bullish pressures is said to be halting i.e. a signal to exit or take profit at once.
- If the blue line of the Williams’ Percentage Range MT4 indicator dips below the -50.00 level while a buy signal is running, an exit or take profit should be rightly considered.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the EMA Crossover Signal custom indicator gets placed somewhat above price bars (see Fig. 11), price is said to be pushed lower i.e. a trigger to go short on the selected fx pair.
- If the blue line of the Williams’ Percentage Range MT4 indicator breaks and stays below the -50.00 level as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, hence a trigger to go short.
Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell signal is running, the EMA Crossover Signal custom indicator forms a spring green upward pointing arrow as seen on Fig. 1.1, bears power is said to be halting i.e. a signal to exit or take profit forthwith.
- If the blue line of the Williams’ Percentage Range MT4 indicator surges above the -50.00 level during a sell alert, an exit or take profit will suffice.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The EMA Crossover Signal custom indicator is a trend seeking indicator built on the crossover of two exponential moving averages.
It will generate a signal when the fast and slow EMA crosses each other.