The reliable Trend Follower forex trading strategy works across a wide range of timeframes and supports any currency pair, including the majors, cross pairs and exotic pairs.
Learn how to look for tradable buy and sell trade setups using this strategy:
Chart Setup
MetaTrader4 Indicators: BT1.ex4 (Inputs Variable Modified; RISK=8,), BSTrend.ex4 (Inputs Variable Modified; period=36
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 put on display:
- If the blue bars of the BT1 custom MT4 indicator gets overlaid on the candles as displayed on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to buy the designated currency pair.
- If the deep sky blue vertical bars of the BSTrend MT4 indicator gets aligned within its window above the 0.00 level (refer to Fig. 1.0), a buy signal is said to be looming.
Stop Loss for Buy Entry: Place stop loss below medium-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is ongoing, a red bar of the BT1 indicator is overlaid on the candlestick as seen on Fig. 1.0, bullish pressures is said to be weaning, hence an exit or take profit will suffice.
- If the BSTrend custom indicator displays a violet bar (aligned below the 0.00 level) during a buy alert, it is a signal to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red bars of the BT1 custom MT4 indicator gets overlaid on piece bars as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish i.e. a sell market signal.
- If the violet vertical bars of the BSTrend MT4 indicator gets placed within its window, below the 0.00 level (check Fig. 1.1), a sell signal is said to be on the horizon.
Stop Loss for Sell Entry: Place stop loss above medium-term 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, a blue bar of the BT1 indicator I put over the candlesticks as depicted on Fig. 1.1, bearish market sentiment is said to be halting, hence an exit or take profit will do.
- If the BSTrend custom indicator displays a deep sky blue bar (aligned above the 0.00 level) during a sell signal, it is a trigger to exit or take profit without delay.
Sell Trade Example
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BSTrend.ex4 is a smooth trend following indicator that deploys colored bars within its indicator window to define bullish (deep sky blue) and bearish (violet) market sentiments.
The BT1.ex4 custom indicator is a trend indicator that used two alterable colors in defining trend.
It takes up the shape of a candlestick as either blue (bullish signal) or red (bearish signal) shaped bodies on the activity chart.