When you make consistent profits in the forex market, it does have a way of keeping you motivated and this obviously is one hell of a task in the market.
The key to staying focused in most cases is not to over monitor your trading account from the dollar standpoint, but rather in the form of pips.
The Dynamic Price Channel forex trading strategy is designed to yield consistent currency profits and I bet this will keep you motivated.
Learn how it works below:
Chart Setup
MetaTrader4 Indicators: Dynamic_Price_Channel.ex4 (Default Settings), 7 EMA, Drive.ex4 (Input 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
Download
Download the Dynamic Price Channel Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator of chart setup gets put on display:
- If the yellow line of the Dynamic_Price_Channel.ex4 custom MT4 indicator intersects the blue 7 EMA line in a bottom up manner, while price trades above (refer to Fig. 1.0), the market sentiment is said to be bullish i.e. a signal to go long.
- If the green line of the Drive custom indicator is seen to cut through its red line, while hovering above, the signal is to buy the desired currency pair.
Stop Loss for Buy Entry: Place stop loss 3-5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If price closes below the yellow line of the Dynamic_Price_Channel.ex4 custom MT4 indicator or if it crosses the blue 7 EMA (refer to Fig. 1.0), then an exit or take profit is advised.
- If the green line of the Drive custom indicator cuts across its red line in a manner that places it beneath, it is a sign to exit or take profit without delay.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the yellow line of the Dynamic_Price_Channel.ex4 custom MT4 indicator intersects the blue 7 EMA line in a top downward fashion, while price trades below (refer to Fig. 1.1), the market sentiment is said to be bearish i.e. a signal to go short.
- If the red line of the Drive custom indicator is seen to cut through its blue line in a manner that places it above as illustrated on Fig. 1.1, it is a trigger to sell the listed forex pair.
Stop Loss for Sell Entry: Place stop loss 3-5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price closes above the yellow line of the Dynamic_Price_Channel.ex4 custom MT4 indicator or if it crosses the blue 7 EMA as depicted on Fig. 1.1, then it is right to exit or take profit on position(s).
- If the red line of the Drive custom indicator cuts across its green line in a manner that places it beneath, it is a signal to exit or take profit immediately.
Sell Trade Example
Fig. 1.1
Free Download
Download the Dynamic Price Channel Forex Trading Strategy
About The Trading Indicators
The Drive.ex4 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.
The 7 EMA is an exponential moving average that has its period set at 7 and reduces the lag by adding more weight to recent price.
The Dynamic_Price_Channel.ex4 is a technical tool that can be used to gauge volatility alongside trend.