The Heiken Alert forex trading strategy filters out some noise experienced when trading forex online, in a bid to capture the most profitable market trends for any currency pair.
This is a simple strategy that beginners and advanced traders can adopt in view simplicity. Looking at the example below will offer us a better picture.
MetaTrader4 Indicators: Heiken Ashi_SWAlert.ex4 (default setting), HalfTrend-1.02.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
Buy Trade Example
Long Entry Rules
Initiate a buy entry of the following indicator or chart pattern gets displayed:
- If the dodger blue lower spiked line with an upward pointing arrow of the HalfTrend-1.02 custom indicator gets aligned somewhat below the candlesticks as seen on Fig. 1.0, price is said to be pushed higher, as such it is a trigger to buy the currency pair of focus.
- If the blue bars of the Heiken Ashi_SWAlert.ex4 custom indicator pops up within the indicator window as depicted on Fig. 1.0, the sentiment in the market is said to be bullish, hence a signal to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take center stage:
- If the during a bullish signal the HalfTrend-1.02 custom indicator line turns red (with the red line spiked upwards along with a downward pointing arrow), it is an indication that bulls are quitting their positions, hence an exit or take profit is advised.
- If the bars of the Heiken Ashi_SWAlert.ex4 custom indicator turn red within its indicator window, it is a trigger to exit or take profit at once.
Sell Entry Rules
Initiate a sell entry if the following holds true:
- If the red upward spiked line with a downward pointing arrow of the HalfTrend-1.02 custom indicator gets aligned somewhat above the candlesticks as illustrated on Fig. 1.1, price is said to be pushed lower, hence a sell trigger.
- If the red bars of the Heiken Ashi_SWAlert.ex4 custom indicator pops up within the indicator window as seen on Fig. 1.1, the sentiment in the market is said to be bearish, hence a signal to sell the specified forex pair.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds sway:
- If the during a bearish signal the HalfTrend-1.02 custom indicator line turns dodger blue (with the line spiked downwards along with an upward pointing arrow), it is an indication that bears are quitting their positions, hence an exit or take profit is advised.
- If the Heiken Ashi_SWAlert.ex4 custom indicator bars turns blue during a sell market, traders are advised to exit or take profit without delay.
Sell Trade Example
About The Trading Indicators
The HalfTrend-1.02.ex4 custom indicator defines reversal within the market, and it does so by combining an upward dodgerblue upward facing arrow along with a downward spiked line place below price bars to signal a buy, while a downward pointing red arrow with an upward spiked line aligned above price signals a sell.
The Heiken Ashi_SWAlert.ex4 custom indicator is a variant of the Heiken Ashi, that is deployed to trigger past and new signals every time that HA candles change their colors.