Overtime I’ve wondered why so many traders struggle to make steady income out of the forex market.
In most cases, these set of traders will tell you how prepared they are before going into the market, but in real sense, they’re ill prepared and are bound to fail.
Knowing what the market requires of you is bound to your success. Staying glued round-the-clock in front of your trading screen does not translate to profits.
The Bykov Magic Oscillator forex trading strategy is designed to deliver the confidence you need to focus on a long term forex trading career.
Furthermore, it combines both trend-following (Gator Oscillator) and trend confirmation technical tools (BykovTrend_Sig & buysellmagic02) to yield a system that just about any trader will find very resourceful.
MetaTrader4 Indicators: reducedlagma BykovTrend_Sig.ex4 (Inputs Variable Modified; RISK=15, SSP=18), Gator Oscillator.ex4 (Default Setting), buysellmagic02.ex4 (Inputs Variable Modified; ArrowPeriod=3)
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
Buy Trade Example
Long Entry Rules
Enter a buy order if the following rules or conditions hold sway:
We begin by explaining the rules that oversee the Gator Oscillator –
Rule 1. Gator awakes – the bars on different sides of the signal line are colored differently.
Rule 2. Gator eats – green bars on both sides of the signal line.
Rule 3. Gator fills out – single red bar during the “eating” or “Rule 2.”
Rule 4. Gator sleeps – the bars on both sides are red.
- If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we should watch out for bullish signal on the BykovTrend_Sig and buysellmagic02 custom indicator as a confirmation to go long.
- If the lime upward pointing arrow and dodger blue dotted line of the buysellmagic02 custom indicator is seen to align below price bars as seen on Fig. 1.0, price is said to be pushed higher i.e. a trigger to go long.
- If the yellow upward pointing arrow of the BykovTrend_Sig custom indicator pops up beneath the candlesticks (refer to Fig. 1.0), a buy signal is said to be looming.
Stop Loss for Buy Entry: Place stop loss below medium term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If the Gator sleeps (labelled as ‘Rule 4’ on Fig. 1.0), it is an indication that the market is entering a non-trending state and as such an exit or take profit is imminent.
- If while a buy signal is ongoing, a red downward arrow of the buysellmagic02 MT4 pops up above the candles, an exit or take profit is recommended.
- If a magenta downward pointing arrow is aligned above price bars, it is an indication of price exhaustion i.e. an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we should look out for signs of a sell alert on the BykovTrend_Sig and buysellmagic02 custom indicator as a confirmation to go short.
- If the red downward pointing arrow and dotted line of the buysellmagic02 custom indicator is seen to form above price bars as shown on Fig. 1.1, price is said to be driven lower i.e. a trigger to go short.
- If the magenta downward pointing arrow of the BykovTrend_Sig custom indicator gets displayed above the candlesticks as depicted on Fig. 1.1, a sell signal is said to be on the horizon.
Stop Loss for Sell Entry: Place stop loss above medium term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Gator sleeps (labelled as ‘Rule 4’ on Fig. 1.1), it is a signal that the market is entering a non-trending state and as such an exit or take profit is in the cards.
- If while a sell alert is running, a lime upward pointing arrow of the buysellmagic02 MT4 pops up below the candles, an exit or take profit is duly advised.
- If a yellow upward pointing arrow is aligned below price bars, price is said to be making a U-turn i.e. an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The BykovTrend_Sig custom indicator is a technical analysis tool that gauges trend with the use of an upward pointing dodger blue and downward pointing red arrows.
The BuysellMagic02 custom indicator on the other hand is a technical tool that forms red/lime arrow above or below price bars in defining bullish or bearish trends for the asset under scrutiny.
The Gator Oscillator is a technical trading tool by Bill Williams and shares a lot of similarity to the Alligator oscillator.
The indicator is basically use to spot strong directional action.