Guppy Forecaster Forex Trading Strategy

The market is essentially made up of speculators, who tend to take risks every second of the day, on the possible direction price could take.

It is always a Bulls versus Bears war, with each party trying to pull price in their preferred direction considering their order volume in the market.

The Guppy Forecaster forex trading strategy is designed to place you in the direction that favors profits.

Let’s look at what the system is made of and how to spot tradeable setups:

Chart Setup

MetaTrader4 Indicators: guppy_multiple_moving_averages.ex4 (Default Setting), FXForecaster.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 Guppy Forecaster Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart set is put on display:

  1. If the green lines of the guppy_multiple_moving_averages.ex4 custom MT4 indicator crosses the red lines bottom up, while the candles are slightly aligned above, price is said to be pushed higher i.e. a trigger to buy the stipulated forex pair.
  2. If the violet and black bars of the FXForecaster.ex4 custom indicator stay above the 0.00 level as shown on Fig. 1.0, the sentiment in the market is said to be bullish, hence a trigger to go long on the stipulated currency pair.

Stop Loss for Buy Entry: Place stop loss 5 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the green lines of the guppy_multiple_moving_averages.ex4 custom MT4 indicator intersects the red lines in a top downward manner, it is an indication of a possible price reversals, hence an exit or take profit will suffice.
  2. If the violet bars of the FXForecaster.ex4 custom indicator is seen below the 0.00 level as depicted on Fig. 1.0, an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the green lines of the guppy_multiple_moving_averages.ex4 custom MT4 indicator crosses the red lines top downward, while the candles are slightly aligned below, price is said to be pressured lower i.e. a trigger to sell the specified fx pair.
  2. If the violet and black bars of the FXForecaster.ex4 custom indicator stay below the 0.00 level as seen on Fig. 1.1, the sentiment in the market is said to be bearish, hence a trigger to go short on the currency pair of interest.

Stop Loss for Sell Entry: Place stop loss 5 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the green lines of the guppy_multiple_moving_averages.ex4 custom MT4 indicator intersects the red lines in a bottom up fashion, it is an indication of a possible bullish reversal, hence an exit or take profit will do.
  2. If the violet bars of the FXForecaster.ex4 custom indicator is seen above the 0.00 level as illustrated on Fig. 1.1, an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Guppy Forecaster Forex Trading Strategy

About The Trading Indicators

The guppy_multiple_moving_averages.ex4 is a technical indicator that draws changing trend via the use of a technique that combines two groups of moving averages with varying time periods

The FXForecaster.ex4 uses violet and black histograms to define its signal system, where a buy signal or sell signal is said to occur when the violet histogram is above or below the 0.00 mark respectively.

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