The Buy Sell Pips Forex trading strategy finds new trends and reversal points in the market with the help of the popular Heiken Ashi Smoothed indicator.
This strategy is particularly suitable for beginners, simplifying the process of recognizing fresh buying and selling signals.
Additionally, it provides guidance on optimal trade exit points.
MetaTrader 4 Indicators: Heiken_Ashi_Smoothed.ex4 (Inputs Variable Modified, MaMethod=0, MaPeriod=18, MaMetod2=2, MaPeriod2=1), buysellpips.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 (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules:
Initiate a buy entry under the following conditions:
- If the Heiken_Ashi_Smoothed.ex4 custom indicator displays a lime candle-like body just below the price bars, as shown in Figure 1.0, indicating a bullish market sentiment, a buy signal is valid.
- When the buysellpips.ex4 MT4 indicator reveals a yellow upward-pointing arrow and a lime dotted line within its window, as seen in Figure 1.0, it suggests upward price movement and confirms a buy alert.
Set the stop loss for the buy entry below the most recent swing low price.
Exit Strategy/Take Profit for Buy Entry:
Exit or take profit according to the following rules:
- If a buy signal is active and the Heiken_Ashi_Smoothed.ex4 custom indicator forms a red candle-like body on the price chart, as illustrated in Figure 1.0, consider exiting or taking profit.
- Should a yellow downward-pointing arrow of the buysellpips.ex4 custom indicator appear within its window during a buy signal, indicating weakening bullish momentum, it’s advisable to trigger an exit or take profit.
Sell Trade Example
Sell Entry Rules:
Execute a sell order based on the following criteria:
- When the red candle-like body of the Heiken_Ashi_Smoothed.ex4 custom indicator is positioned slightly above the candlesticks, as demonstrated in Figure 1.1, signaling a bearish market sentiment, it’s appropriate to initiate a sell signal.
- If the buysellpips.ex4 MT4 indicator displays a yellow downward-pointing arrow and a red dotted line within its window, as depicted in Figure 1.1, indicating downward price movement, this confirms a sell alert.
Set the stop loss for the sell entry above the most recent swing high price.
Exit Strategy/Take Profit for Sell Entry:
Exit or take profit based on the following criteria:
- If a sell alert is active and the Heiken_Ashi_Smoothed.ex4 custom indicator forms a lime candle-like body on the price chart, as shown in Figure 1.1, consider exiting or taking profit.
- If a yellow upward-pointing arrow of the buysellpips.ex4 custom indicator appears within its window during a sell alert, suggesting diminishing bearish strength, it’s advisable to trigger an exit or take profit.
Regarding the indicators employed within this trading strategy:
The Heiken Ashi Smoothed indicator employs solid candlesticks, positioned either above or below the price bars, to delineate trends.
The BuySellPips custom indicator seizes trends using its yellow arrow pointing upward or downward.
This arrow is accompanied by a dotted lime or red line, indicating a buy or sell signal.