The Forex Power Trend trading strategy works for traders with limited knowledge and pros alike, with focus on scanning the currency market for early trend signals and price momentum.
Learn how this strategy works:
Chart Setup
MetaTrader4 Indicators: ForexOFFTrend.ex4 (Inputs Variable Modified; CountBars=2147483647, SSP=11), ZZ_YZ_MDAC_ELDER_1-1000.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
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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:
- If the blue line of the ForexOFFTrend custom indicator intersect the red line in a bottom up manner (see Fig. 1.0), price is said to be taken higher i.e. a trigger to buy the designated forex pair.
- If the histograms (green, medium blue & red) of the ZZ_YZ_MDAC_ELDER_1-1000 MT4 indicator gets aligned above the 0.00 level as depicted on Fig. 1.0, the overall sentiment is said to be bullish, as such a trigger to buy the currency pair of interest.
Stop Loss for Buy Entry: Place stop loss 3 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 the blue line of the ForexOFFTrend custom indicator cuts through the red line to stay above it during a bullish trend (check Fig. 1.0), price is said to be making a U-turn, as such an exit or take profit is advised.
- If a red histogram of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator gets placed below the 0.00 level, bulls power is said to be weaning, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the blue line of the ForexOFFTrend custom indicator intersect the red line in a top downward fashion as depicted on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the currency pair of focus.
- If the histograms (red, medium blue & green) of the ZZ_YZ_MDAC_ELDER_1-1000 indicator gets aligned below the 0.00 level as exemplified on Fig. 1.1, the overall sentiment is said to be bearish, as such a sell alert will do.
Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If the blue line of the ForexOFFTrend custom indicator cuts across the red line to stay below it during a bearish trend (check Fig. 1.1), bears power is said to be halting, as such an exit or take profit is recommended.
- If a green histogram of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator gets placed above the 0.00 level, it is indicative of a bullish reversal, hence an exit or take profit will suffice.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The ForexOFFTrend.ex4 custom indicator is a trend indicator that is built on two moving average lines, where its crosses are seen as a nod to go bullish or bearish as the case may be.
The ZZ_YZ_MDAC_ELDER_1-1000.ex4 combines’ trend following and momentum, with the histogram colored according to Elder.