Trading currencies online offers a great way for market participants to always take advantage of interesting price swings.
The market is never one-directional, as such traders tend to either take a bullish stance or a bearish one.
It is important that you make profits off such positions not minding the direction you decide on taking and having a strategy that suits current market conditions is advantageous.
We’ll look at how the Awesome Trend Bars forex trading strategy will help you achieve profitability.
Chart Setup
MetaTrader4 Indicators: BillWilliams_ATZ.ex4 (default setting), Trend_Bands.ex4 (Input Variable Modified; period=45), Trend_Bars.ex4 (Input Variable Modified; RangePeriods=120)
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 (majors, crosses, exotics)
Download
Download the Awesome Trend Bars Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets displayed:
- If the light sky blue histograms of the Trend_Bars.ex4 custom indicator gets aligned above the 0.00 level as shown on Fig. 1.0, it is a trigger to buy the stipulated forex pair.
- If price closes and stays above the middle magenta line of the Trend_Bands.ex4 custom indicator as seen on Fig. 1.0, it is a signal to buy the currency pair of focus.
- If the blue upward pointing arrow of the BillWilliams_ATZ.ex4 custom indicator gets positioned somewhat below price bars as depicted on Fig. 1.0, it is a signal that points to upward price pressures i.e. a buy alert.
Stop Loss for Buy Entry: Place stop loss 1 pip below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the histograms of the Trend_Bars.ex4 custom indicator readjust to form below (filled red) the 0.00 level, it is a signal to exit or take profit at once.
- If price closes below the middle magenta line of the Trend_Bands.ex4 custom indicator, it is pointing to diminishing bulls power i.e. an exit or take profit trigger.
- If during a sell market, the red downward pointing arrow of the BillWilliams_ATZ.ex4 custom indicator is displayed on the activity chart, an exit or take profit is advised.
Sell Entry Rules
Initiate a sell order if the following holds true:
- If the red histograms of the Trend_Bars.ex4 custom indicator gets aligned below the 0.00 level as illustrated on Fig. 1.1, it is a trigger to sell the designated fx pair.
- If price closes and stays below the middle magenta line of the Trend_Bands.ex4 custom indicator as shown on Fig. 1.1, it is a signal to sell the currency pair of interest.
- If the red downward pointing arrow of the BillWilliams_ATZ.ex4 custom indicator gets placed somewhat above the candles as seen on Fig. 1.1, it is a signal that points to downward price pressures i.e. a sell signal.
Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the histograms of the Trend_Bars.ex4 custom indicator readjust to form above (filled light sky blue) the 0.00 level, it is a signal to exit or take profit without delay.
- If price closes above the middle magenta line of the Trend_Bands.ex4 custom indicator, it is pointing to diminishing bears power, thus a trigger to exit or take profit.
- If the blue upward pointing arrow of the BillWilliams_ATZ.ex4 custom indicator is displayed on the activity chart when a sell is ongoing, it is pointing to weaning bears power, as such an exit or take profit will do.
Sell Trade Example
Fig. 1.1
Free Download
Download the Awesome Trend Bars Forex Trading Strategy
About The Trading Indicators
The BillWilliams_ATZ.ex4 custom indicator analyzes the market through the following five dimensions i.e. fractal, the driving force, acceleration/deceleration, zone and balance line.
The Trend_Bands.ex4 is an indicator that resembles the Bollinger Bands, but it is set at a default period (34).
When price trades along the upper outer bands, it is suggestive of a bullish signal, while it is a bearish alert when price hovers around the lower outer band.
The Trend_Bars.ex4 custom indicator is an oscillator that defines trend by aligning its histograms below (bears) or above (bulls) the 0.00 signal level.