Drive Magic Forex Trading Strategy

Trading can be magical when you are on the right track and avoid the pitfalls that are synonymous with a majority of traders.

To be able to withstand the market drawbacks, a profitable trading strategy is required, as well as a high level of discipline that allows you stick to the trading plan.

The Drive Magic forex trading strategy is rightly designed to allow traders keep an eye on events happening in the currency market, while also profiting from such dealings.

Three crucial indicators make up this system i.e. the ASCTrend1i, Trend Magic and Drive custom indicators, where the individually spot changes in trend, trend reversal levels and price volatility respectively.

Chart Setup

MetaTrader4 Indicators: ASCTrend1i.ex4 (Inputs Variable Modified; RISK=15, Colors Width Modified; #0=3, #1=3), Trend Magic.ex4 (Default Setting), Drive.ex4 (Inputs Variable Modified; Depth=32)

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 entry if the following indicator or chart pattern gets put on display:

  1. If the yellow upward pointing arrow of the ASCTrend1i custom MT4 indicator gets aligned somewhat below the candlestick as shown on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the designated currency pair.
  2. If the Trend Magic indicator line turns blue (see Fi. 1.0), it is a signal to go long on the currency of focus.
  3. If the green line of the Drive MT4 indicator break/hover above the red line as depicted on Fig. 1.0, it is a trigger to go long on the desired forex pair.

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:

  1. If while a buy signal is running, a magenta downward pointing arrow of the ASCTrend1i custom MT4 indicator gets spotted on the activity chart, it is a trigger to exit or take profit at once.
  2. If the Trend Magic indicator line turns red while a buy signal is ongoing, it is an indication of weaning bulls power, hence an exit or take profit will suffice.
  3. If the green line of the Drive indicator intersect the red line to fall below it, an exit or take profit trigger is recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the magenta downward pointing arrow of the ASCTrend1i custom MT4 indicator gets aligned fairly above the candlestick as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected fx pair.
  2. If the Trend Magic indicator line turns red (refer to Fig. 1.1), it is a signal to go short on the currency of interest.
  3. If the green line of the Drive MT4 indicator break/stay below the red line as illustrated on Fig. 1.1, it is a trigger to go short on the preferred forex pair.

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:

  1. If while a sell signal is ongoing, a yellow upward pointing arrow of the ASCTrend1i custom MT4 indicator is spotted on the activity chart, it is a trigger to exit or take profit immediately.
  2. If the Trend Magic indicator line turns blue during a sell alert, it is an indication of halting bears power, hence an exit or take profit will do.
  3. If the green line of the Drive indicator intersect the red line to jump above it, an exit or take profit trigger is advised.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The ASCTrend1i custom indicator is used to deliver trading signals via the use of its yellow upward pointing arrow (bullish signal) and magenta colored downward pointing arrow (bearish signal).

The Trend Magic custom indicator is a trend following indicator that combines both the CCI and the ATR indicators.

The Drive custom indicator is a trend reversal signal indicator.

If the red and the green line intersect, it is an indication that trend is about to change.

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