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

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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

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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.

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