1-Line Trend Forex Trading Strategy

The 1-Line Trend forex trading strategy is built around 2 trend following indicators and is able to predict the trend of any currency pair accurately.

Moreover, it can be used to spot trend reversals, change in market trends and overbought/oversold price conditions.

Chart Setup

MetaTrader4 Indicators: (T_S_R)-Slope Direction Line.ex4 (Default Setting), ASCTrend.ex4 (Inputs Variable Modified; RISK=6, CountBars=3000000), 1SSRC.ex4 (Inputs Variable Modified; TotalBars=7000)

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:

  1. If the blue upward arrow of the ASCTrend custom indicator gets aligned somewhat below price bars as depicted on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated currency pair.
  2. If the line of the (T_S_R)-Slope Direction Line MT4 indicator turns light blue (see Fig. 1.0), price is said to be taken to the upside i.e. a trigger go long on the pair of interest.
  3. If the lime line of the 1SSRC custom indicator break above the 0.00 level as shown on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the fx pair of focus.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the magenta downward pointing arrow of the ASCTrend custom indicator pops up above price bars, it is an indication of weaning bulls power, hence an exit or take profit will suffice.
  2. If the line of the (T_S_R)-Slope Direction Line MT4 indicator turns tomato during a buy signal, it is an indication of halting bulls power, as such an exit or take profit is duly recommended.
  3. If the lime line of the 1SSRC custom indicator dip below the 0.00 level (refer to Fig. 1.0) while a buy alert is running, an exit or take profit is duly advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the magenta downward arrow of the ASCTrend custom indicator gets aligned fairly above price bars as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
  2. If the line of the (T_S_R)-Slope Direction Line MT4 indicator turns tomato (see Fig. 1.1), price is said to be taken to the downside i.e. a trigger go short on the pair of focus.
  3. If the lime line of the 1SSRC custom indicator break below the 0.00 level as illustrated on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to sell the fx pair of interest.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If the blue upward pointing arrow of the ASCTrend custom indicator pops up just below the candlesticks, it is an indication of halting bears power, hence an exit or take profit will do.
  2. If the line of the (T_S_R)-Slope Direction Line MT4 indicator turns light blue during a sell alert, it is an indication of weaning bears power, as such an exit or take profit is duly advised.
  3. If the lime line of the 1SSRC custom indicator surges above the 0.00 level (see Fig. 1.1) while a sell signal is ongoing, an exit or take profit is duly recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The (T_S_R)-Slope Direction Line is a trend following indicator but has its period set at 80, which gives it more lag. Its line color changes between tomato and light blue.

The ASCTrend is a trend following indicator that uses magenta downward pointing arrows or aqua upwards pointing arrows to define sell and buy signals respectively.

The 1SSRC custom indicator oscillates between -1.3 and 1.3, where levels below the -0.9 level indicates extremely bearish signals, while levels above the 0.9 level are indicative of extremely bullish signal.

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