Chandelier Power Stops Forex Trading Strategy
As crazy as it might sound, losing is an integral part of winning for any given trader, as the two are inseparable.
Learning how to lose properly is something every trader must be able to grasp, if they must consistently be in the greens.
Pro traders also lose money, and this is a reality that should sink. Obviously, they understand that it’s just part of the “game”.
Regrettably, a lot of traders accompany each trade with an incredible fear that is followed by deep emotional attachment – an obvious recipe for disaster.
The Chandelier Power Stops forex trading strategy is designed to curb losing while maintaining profits at the same time.
It is able to do this by combining the ChandelierStops_v1 (that spots trend exhaustion), Bulls Power (gauges bullish trend) and the Bears Power (gauges bearish trend) indicator.
MetaTrader4 Indicators: ChandelierStops_v1.ex4 (Inputs Variable Modified; Length=28, ATRperiod=18, Kv=3.5), Bulls Power.ex4 (Parameters Modified; Period=50, Style=Blue), Bears Power.ex4 (Parameters Modified; Period=50, Style=FireBrick)
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 indicator or chart pattern gets put on display:
- If the blue line of the ChandelierStops_v1 custom indicator gets aligned somewhat below price bars as shown on Fig. 1.0, a buy signal is said to be in place.
- If the blue histograms of the Bulls Power MT4 indicator gets aligned above the 0.00 level as illustrated on Fig. 1.0, price is said to be taken higher i.e. a trigger go long on the suggested currency pair.
Stop Loss for Buy Entry: Place stop loss 5 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If while a buy trend is ongoing, the line of the ChandelierStops_v1 custom indicator turns red as shown on Fig. 1.0, an exit or take profit is recommended.
- If the histograms of the Bulls Power MT4 indicator readjust to form below the 0.00 level, it is a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red line of the ChandelierStops_v1 custom indicator gets aligned slightly above price bars as depicted on Fig. 1.1, a sell signal is said to be in place.
- If the firebrick histograms of the Bears Power MT4 indicator gets placed below the 0.00 level (refer to Fig. 1.1, price is said to be driven lower i.e. a trigger go short on the selected forex pair.
Stop Loss for Sell Entry: Place stop loss 5 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell trend is running, the line of the ChandelierStops_v1 custom indicator turns blue as pointed on Fig. 1.1, an exit or take profit is advised.
- If the firebrick histograms of the Bears Power MT4 indicator readjust to form above the 0.00 level, it is a trigger to exit or take profit forthwith.
Sell Trade Example
About The Trading Indicators
The ChandelierStops_v1 custom indicator is a modified version of the Chande & Kroll’s Stop indicator.
The indicator is enhanced to follow trend as well as spot stop loss for a buy and sell position via the use of variation on directional movement.
The Bears and Bulls Power MT4 indicator can be deployed to measure the strength of the bulls and bears in the market and also offer alert to possible breakout.