Trading can be a bit strenuous most of the times, but what makes it worthwhile is the ability for a trading strategy to turn in the much desired profits.
We have designed the free Enhanced Ravi Signal forex trading strategy that will give you great entry and exit points in the trend.
Chart Setup
MetaTrader4 Indicators: reducedlagma.ex4 (default setting), ravisignal.ex4 (default setting), RainbowMMA_03.ex4 (default setting)
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 Enhanced Ravi Signal Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Take up buy position(s) if the following indicator or chart pattern gets displayed:
- If the Medium Orchid lines of the RainbowMMA_03 custom indicator intersects the lines (red & blue) of the reducedlagma.ex4 custom indicator in a manner that leaves it in-between the indicator’s red and blue lines while the lines stay below price bars, a buy signal is said to be imminent.
- Watch out for the histograms of the ravisignal.ex4 custom indicator, if it breaks out above the 0.00 signal level as seen on Fig. 1.0, price is said to be pushed to the upside, as such a trigger to go long.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following holds true:
- If the Medium Orchid lines of the RainbowMMA_03 custom indicator crosses the red line of the reducedlagma.ex4 indicator top downward, it is an indication of weaning bulls power, hence an exit or take profit is advised.
- If during a bullish signal the ravisignal.ex4 custom indicator histogram forms below the 0.00 level as shown on Fig. 1.0, price is said to be making a possible U-turn, hence a trigger to exit or take profit straightaway.
Sell Entry Rules
Take up sell position(s) if the following holds sway:
- If the Medium Orchid lines of the RainbowMMA_03 custom indicator intersect the lines (red & blue) of the reducedlagma.ex4 custom indicator in a manner that leaves it in-between the indicator’s red and blue lines while the lines stay above price bars, a sell signal is said to be in the offing.
- Watch out for the histograms of the ravisignal.ex4 custom indicator, if it breaks out below the 0.00 signal level as shown on Fig. 1.1, price is said to be pushed lower, hence a trigger to sell the asset of choice.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds true:
- If the Medium Orchid lines of the RainbowMMA_03 custom indicator crosses the red line of the reducedlagma.ex4 indicator bottom up, it is an indication of halting bears power, hence an exit or take profit is advised.
- If during a bearish signal the ravisignal.ex4 custom indicator histogram forms above the 0.00 level as illustrated on Fig. 1.1, the bearish sentiment in the market is said to be altering, hence a trigger to exit or take profit at once.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Ravisignal.ex4 is an MT4 indicator that deploys two moving averages computed in percent.
The indicator has been modified to show bullish trends with its green colored histograms, while bearish trends are designated with red.
The reducedlagma.ex4 custom indicator is an advanced moving average indicator that eliminates lag, thereby reacting faster to changes in price.
The RainbowMMA_04 custom indicator is the fourth GMMA forex series of eleven technical indicators largely dependent on the Guppy multi moving average.