Up/Down Bars Forex Trading Strategy

Trading currencies can be quite energetic, but with the right trading strategy it becomes an enjoyable task to get along with.

Intraday currency traders will find the UP/Down Bars forex strategy quite helpful, considering its high win rate and its simplicity.

Chart Setup

MetaTrader4 Indicators: UpDownBars.ex4 (default setting), Ultimate_MA.ex4 (default setting), Turn_Area_Chart.ex4 (default setting)

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 Forex Up/Down Bars 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 displayed:

  1. If the medium violet red line of the Ultimate_MA.ex4 custom indicator intersects the Turn_Area.ex4 indicator lines bottom up with price trading somewhat above as illustrated on Fig. 1.0, price is said to be pressured to the upside, hence a trigger to go long on the pair of interest.
  2. If the red bars of UpDownBars.ex4 custom indicator forms above the 0.00 level as shown on Fig. 1.0, the prevalent market sentiment is said to be bullish, as such a trigger to buy the designated currency pair.

Stop Loss for Buy Entry: Place stop loss 2 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 medium violet red line of the Ultimate_MA.ex4 custom indicator crosses the Turn_Area.ex4 indicator lines top downward during a bullish trend, it is a signal of weaning bulls power i.e. an exit or take profit is recommended.
  2. If the red bars of the UpDownBars.ex4 custom indicator readjust to form below the 0.00 level during a buy alert, it is a signal to exit or take profit at once.

Sell Entry Rules

Take up sell position(s) if the following holds true:

  1. If the medium violet red line of the Ultimate_MA.ex4 custom indicator intersects the Turn_Area.ex4 indicator lines top downward with price trading somewhat below as seen on Fig. 1.1, price is said to be pushed lower, hence a trigger to go short on the asset of choice.
  2. If the red bars of UpDownBars.ex4 custom indicator pops up below the 0.00 level as depicted on Fig. 1.1, the dominant market sentiment is said to be bearish, as such a trigger to sell the selected fx pair.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the medium violet red line of the Ultimate_MA.ex4 custom indicator crosses the Turn_Area.ex4 indicator lines bottom while a bearish trend is ongoing, it is a signal of halting bears power i.e. an exit or take profit is recommended.
  2. If the red bars of the UpDownBars.ex4 custom indicator readjust to form above the 0.00 level during a sell trigger, it is a signal to exit or take profit immediately.

Sell Trade Example

Fig. 1.1

Free Download

Download the Forex Up/Down Bars Forex Trading Strategy

About The Trading Indicators

The Ultimate_MA.ex4 is a modified moving average that computes the weighted average of 3 moving averages (Simple, Exponential, Smoothed or Linear Weighted).

It has been shown to follow trend better than the single moving average and a good alternative to EMA or SMA for traders who don’t like untidiness.

The Turn_Area_Chart.ex4 is a trend following custom indicator that incorporates the exponential moving average method and relative strength index in defining price action.

The UpDownBars.ex4 custom oscillator indicator that counts up bars (Close-Open) and down bars (Open-Close).

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Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately.



  • 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