The Hyper VMA Trend forex trading strategy uses volatility and trend direction to generate trading signals on any currency pair and timeframe.
It’s perfect for beginners because of its simplicity!
Let’s take a closer look below how to get started with this forex strategy in less than 15 minutes:
Chart Setup
MetaTrader4 Indicators: Var_Mov_Avg.ex4 (Input Variable Modified; nslow=38), Volatility Hyper Trend.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 (Majors, Cross Pairs, Exotics)
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy order if the following indicator or chart pattern get put on display:
- If the blue dotted line of the Var_Mov_Avg.ex4 custom indicator gets aligned somewhat below the candlesticks as shown on Fig. 1.0, price is said to be taken to the upside i.e. a trigger to buy the stipulated forex pair.
- If the blue upward pointing arrow of the Volatility Hyper Trend custom indicator pops up below price bars as depicted on Fig. 1.0, while also showing its thick red line intersecting the green line bottom up (within its indicator window), it is a good buy confirmation.
Stop Loss for Buy Entry: Place stop loss below the dotted blue rising line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the magenta dot appears on the Var_Mov_Avg.ex4 custom indicator line (distorting the blue dotted line flow) during a buy trigger as illustrated on Fig. 1.0, it is a signal to exit or take profit at once.
- If the thick red line of the Volatility Hyper Trend custom indicator turns blue, an exit or take profit should be considered at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the magenta dotted line of the Var_Mov_Avg.ex4 custom indicator gets aligned somewhat above the candlesticks as seen on Fig. 1.1, price is said to be pressured lower i.e. a trigger to sell the currency pair of focus.
- If the red downward pointing arrow of the Volatility Hyper Trend custom indicator pops up above price bars as painted on Fig. 1.1, while also showing its thick blue line intersecting the green line top downward (within its indicator window), the market sentiment is said to be bearish, as such a sell is imminent.
Stop Loss for Sell Entry: Place stop loss above the dotted magenta falling line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If a blue dot gets aligned on the Var_Mov_Avg.ex4 custom indicator line (distorting the magenta dotted line flow) during a sell alert as shown on Fig. 1.1, it is a signal to exit or take profit forthwith.
- If the thick blue line of the Volatility Hyper Trend custom indicator turns red, an exit or take profit should be considered without delay.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Var_Mov_Avg.ex4 custom indicator is based on the moving averages, but yield more accurate signals due to its advance noise filter.
It deploys changes in color of its dotted line to signal trend changes as shown above.
The Volatility Hyper Trend custom indicator is a technical tool designed for the MT4 platform that does not repaint and delivers buy and sell trading signals.