Beginners can easily feel overwhelmed with information and trading strategies when starting off in the forex market.
One sure way to limit this or shun it altogether, is to get a sound forex trading strategy.
We have laid out our trading strategy for all to learn and by so doing, you can start on a clean slate.
The Flat MUV Trend forex trading strategy is focused on spotting buy and sell currency trends accurately and does not over-complicate things.
The list of indicators that makes up this strategy includes the Flat Trend RSI and the MUV custom indicators, as they’re designed to aid traders restrain their emotions, takes notes, whilst studying their wins and losses.
MetaTrader4 Indicators: Flat Trend RSI.ex4 (Inputs Variable Modified; periodRSI=8), MUV.ex4 (Inputs Variable Modified; ma_method=1, Colors Modified; #0=Lime, Colors Width Modified; #0=2, #1=2), 45 SMA.ex4
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 entry if the following indicator or chart pattern gets put on display:
- If the magenta line of the 45 SMA indicator intersects the red MUV custom indicator line in a bottom up manner as depicted on Fig. 1.0, price is said to be taken to the upside, hence a buy signal is said to be imminent.
- If the deep sky blue vertical lines of the Flat Trend RSI custom indicator gets aligned above the 0.00 level (see Fig. 1.0), the prevalent market sentiment is said to be bullish i.e. a trigger to buy the selected currency pair.
Stop Loss for Buy Entry: Place stop loss below trading support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take precedence:
- If while a buy trigger is running, price is seen to close below the magenta line of the 45 SMA indicator as seen on Fig. 1.0, price is said to break below a support zone i.e. an exit or take profit is advised.
- If the Flat Trend RSI custom MT4 indicator displays a red vertical that gets placed below the 0.00 level during a bullish signal, a bearish reversal is underway, as such an exit or take profit is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the magenta line of the 45 SMA indicator cuts through the red MUV custom indicator line in a top downward fashion as shown on Fig. 1.1, price is said to be driven lower, hence a sell signal is said to be in the offing.
- If the red vertical lines of the Flat Trend RSI custom indicator gets positioned below the 0.00 level (check Fig. 1.1), the prevailing market sentiment is said to be bearish i.e. a trigger to sell the designated fx pair.
Stop Loss for Sell Entry: Place stop loss above trading resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell trigger is ongoing, price is seen to close above the magenta line of the 45 SMA indicator as illustrated on Fig. 1.1, price is said to break above a resistance zone i.e. an exit or take profit is recommended.
- If the Flat Trend RSI custom MT4 indicator displays a deep sky blue vertical that gets placed above the 0.00 level during a sell alert, a bullish reversal is said to be underway, as such an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The Flat Trend RSI is an enhanced Relative Strength Indicator that has its default period set to 14.
The MUV custom indicator is a Tom Demark (TD) Moving Average indicator for MetaTrader4 and defines the logical locations for introducing stop loss orders or closing a trade, which clearly defines how the creator Tom Demark explains the TD Moving Average indicator.
The 45 SMA is a simple moving average that has its period set at 45 and represents forty five period sum of closing prices divided by 45.