Statistics show that 5% of market participants are made up of bank traders, who in turn control over 92% of all forex volumes.
This makes it important for anyone who’s willing to succeed in the market to understand how these institutions trade.
The Fratelli Signal Arrows forex trading strategy is designed to mimic how institutional traders trade the market vis-à-vis extract cash out of the market.
The strategy uses the Arrows_Signal_BO and Fratelli_MACD custom indicators in understudying the market for trend reversal and trend exhaustion respectively.
MetaTrader4 Indicators: Arrows_Signal_BO.ex4 (default settings), Fratelli_MACD.ex4 (default settings)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
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 aqua upward pointing arrow of the Arrows_Signal_BO custom indicator get displayed slightly below the candlesticks as depicted on Fig. 1.0, price is said to be taken higher i.e. a trigger to go long on the stipulated forex pair.
- If the lime dotted line of the Fratelli_MACD custom indicator break above the 0.00 level, it is indicative of an upward price pressures (see Fig. 1.0), hence a buy signal is said to be looming.
Stop Loss for Buy Entry: Place stop loss 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:
- If the red downward pointing arrow of the Arrows_Signal_BO custom MT4 indicator gets put on display fairly above the candlesticks as shown on Fig. 1.0, it is an indication of weaning bulls power, as such an exit or take profit will do.
- If a magenta dot forms below the 0.00 level while a buy signal is running, an exit or take profit is duly advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the Arrows_Signal_BO custom indicator get displayed slightly above the candlesticks as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the designated forex pair.
- If the magenta dotted line of the Fratelli_MACD custom indicator dips below the 0.00 level, it is indicative of a downward price push (refer to Fig. 1.1), as such a sell alert is imminent.
Stop Loss for Sell Entry: Place stop loss 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:
- If the aqua upward pointing arrow of the Arrows_Signal_BO custom MT4 indicator gets put on display somewhat below the candlesticks as seen on Fig. 1.1, it is an indication of halting bulls power, as such an exit or take profit will suffice.
- If a lime dot forms above the 0.00 level during a sell alert, an exit or take profit is duly recommended.
Sell Trade Example
About The Trading Indicators
The Arrows_Signal_BO.ex4 is a custom indicator that gauges the trend in the market, using its red (bearish signal) and aqua (bullish signal) colored arrows.
The Fratelli_MACD.ex4 is a custom indicator that is centered on the common MACD (Moving Average Convergence-Divergence) indicator.
The indicator is able to measure the strength or weakness of market trends.