The Cusiv Moving Envelopes forex trading strategy follows the trend and is well crafted to yield profits and keep you afloat in the forex marketplace.
The Custom Moving Averages, Envelopes and CUSIV01 MT4 indicators are added unto the trading chart in a manner that allows us a good picture into trend formation, trend exhaustion and momentum respectively.
Chart Setup
MetaTrader4 Indicators: Custom Moving Averages.ex4 (Inputs Variable Modified; Period=50), Envelopes.ex4 (Parameters Modified; Period=28, MA method=Exponential), CUSIV01.ex4 (Inputs Variable Modified; EMASize=64)
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
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy order if the following indicator or chart pattern gets put on display:
- If the magenta line of the Custom Moving Averages indicator cuts through the blue & red lines of the Envelopes MT4 indicator in a bottom up fashion (refer to Fig. 1.0), price is said to be taken higher, hence a buy signal is said to be looming.
- If the red histograms of the CUSIV01 custom indicator line up below the 0.00 signal as depicted on Fig. 1.0, it is a signal to go bullish on the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below rising magenta line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If while a bullish trend is ongoing, price is seen to close below the magenta line of the Custom Moving Averages indicator as illustrated on Fig. 1.0, an exit or take profit is advised.
- If the CUSIV01 custom indicator displays a lime histogram above the 0.00 level while a buy signal is running, an exit or taka profit is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the magenta line of the Custom Moving Averages indicator intersects the blue & red lines of the Envelopes MT4 indicator in a top downward manner as seen on Fig. 1.1, price is said to be driven lower, hence a sell signal is said to be imminent.
- If the lime histograms of the CUSIV01 custom indicator line up above the 0.00 signal as illustrated on Fig. 1.1, it is a signal to go short on the selected forex pair.
Stop Loss for Sell Entry: Place stop loss above falling magenta line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is running, price is seen to close above the magenta line of the Custom Moving Averages indicator as exemplified on Fig. 1.1, an exit or take profit will suffice.
- If the CUSIV01 custom indicator displays a red histogram below the 0.00 level while a sell signal is running, it is a trigger to exit or take profit at once.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Custom Moving Averages is used to spot the direction of trend or it can also be deployed in defining possible levels of support and resistance.
The Envelopes MT4 indicator is a trend indicator that is built after the moving averages and is also tagged a Moving Average Envelopes.
The CUSIV01 custom indicator is an oscillator that can be used to spot trend using its adjustable EMASize value default reading of 50.
It aligns red histogram (bearish) and lime histogram (bullish), below and above the 0.00 signal level respectively.