Many traders fail to achieve good results in the market regardless of its exciting, educational and opportunity filled characteristics.
You must approach the market with a clear vision i.e. a good idea of market directions and your plausible actions.
These actions should be adequately covered when deploying a trading strategy, as such the Double Half Woody forex trading strategy will get you comfortable, as it tries to avoid some of the market pitfalls.
The strategy makes use of the HalfTrend-1.02 and DoublecciWoody custom indicators, which are essential ingredients needed to decipher forex trend and volatility respectively.
MetaTrader4 Indicators: HalfTrend-1.02.ex4 (Inputs Variable Modified; Amplitude=8), DoublecciWoody.ex4 (Inputs Variable Modified; TrendCCI_Period=28, CountBars=100000000)
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
Initiate a buy order if the following indicator or chart pattern gets put on display:
- If the dodger blue upward pointing arrow and lower spiked line of the HalfTrend-1.02 custom MT4 indicator gets aligned somewhat below price bars as shown on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy order will do.
- If the dark khaki line and histograms (gold & medium sea green) of the DoublecciWoody MT4 indicator break above the 0.00 level as seen on Fig. 1.0, a buy signal is said to be imminent.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is running, the HalfTrend-1.02 custom indicator pops up a red downward pointing arrow, this is indicative of an impending trigger to exit or take profit.
- If the dark khaki line of the DoublecciWoody indicator is seen to dip below the 0.00 level during a bullish signal (check Fig. 1.0), it is a clear signal to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow and upper spiked line of the HalfTrend-1.02 custom MT4 indicator gets aligned fairly above the candlesticks as depicted on Fig. 1.1, the overall market sentiment is said to be bearish, as such a sell order will suffice.
- If the dark khaki line and histograms (red & gold) of the DoublecciWoody MT4 indicator dip below the 0.00 level as illustrated on Fig. 1.1, a sell alert is in the offing.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If while a sell alert is ongoing, the HalfTrend-1.02 custom indicator pops up a dodger blue upward pointing arrow, this is indicative of weaning bear power, as such an exit or take profit will do.
- If the dark khaki line of the DoublecciWoody indicator is seen to surge above the 0.00 level during a bearish signal (see Fig. 1.1), it is a clear signal to exit or take profit immediately.
Sell Trade Example
About The Trading Indicators
The HalfTrend-1.02.ex4 custom indicator defines reversal within the market, and it does so by combining an upward dodgerblue upward facing arrow along with a downward spiked line place below price bars to signal a buy, while a downward pointing red arrow with an upward spiked line aligned above price signals a sell.
The DoublecciWoody.ex4 custom indicator is an oscillator that deploys two CCIs in defining the direction of trend.