Magic Fisher Trend Forex Trading Strategy

There are varying market strategies that can make you consistent profits when trading currencies online, and traders must be clear on the strategy they intend on using before jumping right into the market.

This is more like knowing your route before taking a trip.

The Magic Fisher Trend forex trading strategy offers a simple trading route that can help you buy and sell forex for decent profits in a timely fashion.

The Trend Magic, i-AMA-Optimum and Fisher_m11 custom indicators are meshed to deliver high trend sorting capabilities, gauge market resistance and spot trend reversal respectively.

Chart Setup

MetaTrader4 Indicators: Trend Magic.ex4 (Default Setting), i-AMA-Optimum.ex4 (Colors Width Modified; #0=2, #1=2), Fisher_m11.ex4 (Inputs Variable Modified; RangePeriods=24, PriceSmooting=0.9)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any (24 hour trading)

Currency Pairs: Any pair

Download

Download the Magic Fisher Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator intersects the line of the Trend Magic in a bottom up manner as shown on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to go long on the currency pair of interest.
  2. If the lime histograms of the Fisher_m11 custom indicator break above the 0.00 level as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a buy alert is said to be looming.

Stop Loss for Buy Entry: Place stop loss below the most recent swing low price.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator cuts through the mostly red line of the Trend Magic MT4 indicator to stay above it, bulls power is said to be weaning i.e. an exit or take profit is advised.
  2. If during a buy alert a red histogram forms below the 0.00 level, an exit or take profit stance is imminent.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator intersects the line of the Trend Magic in a top downward fashion as depicted on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the designated forex pair.
  2. If the red histograms of the Fisher_m11 custom indicator gets aligned below the 0.00 level as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, hence a sell alert will do.

Stop Loss for Sell Entry: Place stop loss above the most recent swing high price.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator cuts through the mostly blue line of the Trend Magic MT4 indicator to stay below it, bears power is said to be halting i.e. an exit or take profit is recommended.
  2. If while a sell alert is running, a lime histogram forms above the 0.00 level, an exit or take profit stance is forthcoming.

Sell Trade Example

Fig. 1.1

Free Download

Download the Magic Fisher Trend Forex Trading Strategy

About The Trading Indicators

The Trend Magic custom indicator is a trend following indicator that combines both the CCI and the ATR indicators.

The i-AMA-Optimum is an optimized version of the Kaufman’s Adaptive Moving Average (AMA) that was originally developed by Perry Kaufman and finds use on short and long periods.

The Fisher_m11 on the other hand is a simple histogram indicator that isolates strength and the course of the trend and alerts changes in trend.

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