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KS Envelope Forex Trading Strategy

    The KS Envelope forex trading strategy is a unique currency system that can be used for scalping, day trading, swing trading and position trading.

    It allows traders spot high-probability entries in the market using an overly simplified trading strategy.

    I explain below how to buy and sell with this powerful FX strategy but first let’s get started with the chart setup:

    Chart Setup

    MetaTrader4 Indicators: Kijun_sen_and_envelope.ex4 (default setting), 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, Day

    Recommended Trading Sessions: Any

    Currency Pairs: Any pair

    Download

    Download the KS Envelope Forex Trading Strategy

    Buy Trade Example

    Fig. 1.0

    Strategy      

    Long Entry Rules

    Initiate a buy entry if the following indicator or chart pattern are on display:

    1. If the histograms of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator aligns above the 0.00 signal level, price is said to be pressured higher i.e. a trigger to buy the desired asset. The color of the histogram is basically green during the start of a bullish trend, while red histograms above the 0.00 level is a sign of weaning buy pressures.
    2. If price opens and closes above the upper lime line of the Kijun_sen_and_envelope.ex4 custom indicator as depicted on Fig. 1.0, it is a trigger to buy the currency pair of focus.

    Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

    Exit Strategy/Take Profit for Buy Entry

    Exit or take profit if the following holds true:

    1. If the histograms of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator aligns below the 0.00 signal level during a bullish trend, it is signaling weaning bull power in the market, hence an exit or take profit is advised.
    2. If during price ascend, a decline is witnessed that brings a price bar to close below the lower outer red line of the Kijun_sen_and_envelope.ex4 custom indicator, an exit or take profit is recommended.

    Sell Entry Rules

    Enter a sell in the market if the following rules of conditions holds sway:

    1. If the histograms of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator aligns below the 0.00 signal level, price is said to be pushed lower i.e. a trigger to sell the desired asset. The color of the histogram is basically red during the start of a bearish trend, while green histograms below the 0.00 level is a sign of weaning bears pressures.
    2. If price opens and closes below the lower outer red line of the Kijun_sen_and_envelope.ex4 custom indicator as depicted on Fig. 1.1, it is a trigger to sell the currency pair of interest.

    Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

    Exit Strategy/Take Profit for Sell Entry

    Exit or take profit if the following indicator or chart pattern takes dominance:

    1. If the histograms of the ZZ_YZ_MDAC_ELDER_1-1000 custom indicator aligns above the 0.00 signal level during a bearish trend, it is signaling weaning bears power in the market, hence an exit or take profit is advised.
    2. If during price descend, a rise in price is seen that brings the candlestick to close above the upper outer lime line of the Kijun_sen_and_envelope.ex4 custom indicator, an exit or take profit is recommended.

    Sell Trade Example

    Fig. 1.1

    Free Download

    Download the KS Envelope Forex Trading Strategy

    About The Trading Indicators

    The Kijun_sen_and_envelope.ex4 custom indicator is an important member of the the Ichimoku Kinko Hyo indicator family and can be used to measure medium-term momentum.

    The ZZ_YZ_MDAC_ELDER_1-1000.ex4 indicator combines trend following and momentum, with the histogram colored according to Elder.