Aroon Off Trend Forex Trading Strategy

The Aroon Off Trend forex trading strategy uses a unique trading setup pattern that allows for quick detection of the most profitable trend, irrespective of the timeframe.

This strategy can be used for any currency pair and timeframe.

Chart Setup

MetaTrader4 Indicators: ForexOFFTrend.ex4 (Inputs Variable Modified; CountBars=11, SSP=11), Aroon_Oscilator_v1.ex4 (Inputs Variable Modified; AroonPeriod=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

Download

Download the Aroon Off Trend 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 put on display:

  1. If the blue line of the ForexOFFTrend indicator cuts across the red line in a bottom up manner as depicted on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the designated currency pair.
  2. If the histograms (dodger blue & yellow) and green line of the Aroon_Oscilator_v1 indicator stay above the 0.00 level (see Fig. 1.0), a buy trigger is said to be looming.

Stop Loss for Buy Entry: Place stop loss 3 pips 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 while a buy signal is running, the blue line of the ForexOFFTrend custom MT4 indicator intersects the red line to stay above it, price is said to be in an imminent bearish reversal i.e. an exit or take profit is advised.
  2. If the green line of the Aroon_Oscilator_v1 MT4 indicator break below the 0.00 level while a buy signal is running, it is positing to an imminent bearish reversal, as such an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the blue line of the ForexOFFTrend custom indicator intersect the red line in a top downward fashion as shown on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
  2. If the histograms (red & yellow) and green line of the Aroon_Oscilator_v1 indicator hover below the 0.00 level (see Fig. 1.1), a sell trigger is said to be on the horizon.

Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

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

  1. If while a sell alert is ongoing, the blue line of the ForexOFFTrend custom MT4 indicator intersects the red line to stay below it, price is said to be in an imminent bullish reversal, hence an exit or take profit will do.
  2. If the green line of the Aroon_Oscilator_v1 MT4 indicator pushes above the 0.00 level while a sell signal is ongoing, it is positing to an impending bullish reversal, as such an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Aroon Off Trend Forex Trading Strategy

About The Trading Indicators

The Aroon_Oscilator_v1.ex4 is a custom indicator designed by Tushar Chande and has the ability to spot the formation of new trends and define momentum of such trends.

The ForexOFFTrend.ex4 custom indicator is a good trend indicator that is built on two moving average lines, where its crosses are seen as a nod to go either bullish or bearish.

Share Now!