Forecaster Candle Forex Trading Strategy

The Forecaster Candle Forex trading strategy has the strength to yield a hybrid currency system that can determine when a trend is about kicking off and also discover possible early reversal points for any pair.

Chart Setup

MetaTrader4 Indicators: ForexForecaster.ex4 (Inputs Variable Modified; IPeriod=40), ronz_price_ma_candle.ex4 (Inputs Variable Modified; Period=24)

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 (majors, currency cross pairs, exotics)

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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 blue candles of the ronz_price_ma_candle.ex4 custom indicator gets displayed on the activity chart as depicted on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated fx pair.
  2. If the line of the ForexForecaster.ex4 MT4 indicator break above the 0.00 level as seen on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a buy alert will suffice.

Stop Loss for Buy Entry: Place stop loss 2-3 pips below the most recent swing low price.

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 red candle of the ronz_price_ma_candle.ex4 custom indicator that pops up on the activity chart, is a trigger to exit or take profit at once.
  2. If the line of the ForexForecaster.ex4 MT4 indicator dips below the 0.00 level during a buy alert, bulls power is said to be weaning i.e. a trigger to exit or take profit immediately.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the red candles of the ronz_price_ma_candle.ex4 custom indicator gets displayed on the activity chart as exemplified on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the selected forex pair.
  2. If the line of the ForexForecaster.ex4 MT4 indicator dip below the 0.00 level as shown on Fig. 1.1, the overall market sentiment is said to be bearish i.e. a sell alert will do.

Stop Loss for Sell Entry: Place stop loss 2-3 pips above the most recent swing high price.

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 running, a blue candle of the ronz_price_ma_candle.ex4 custom indicator gets displayed on the activity chart (see Fig. 1.1), is a trigger to exit or take profit straightaway.
  2. If the line of the ForexForecaster.ex4 MT4 indicator surges above the 0.00 level during a sell signal, bears power is said to be halting i.e. a trigger to exit or take profit immediately.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The ForexForecaster.ex4 is a custom indicator that shifts between red and green to indicate bearish and bullish signal respectively.

The ronz_price_ma_candle.ex4 custom indicator is an Exponential Moving Average based price candle.

The indicator allows for the viewing of the Exponential Moving Average indicator as price candle.