If you have ever wondered what trading strategies to use in your currency trading, then this strategy will certainly appeal to you.
The MFI Price Forex Trading Strategy is definitely one that works and doesn’t require hours of chart analysis and being super glued to your screen.
The key details about the strategy is in understanding how the setup stacks up and this strategy will get things rolling in the right direction for you.
MetaTrader4 Indicators: MFI_price.ex4 (Inputs Variable Modified; ExtMFIPeriod=18, Applied_price=6), Notarius.ex4 (Inputs Variable Modified; Mode=0, StartBar=6)
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 if the following indicator or chart setup gets put on display:
- If the lime green upward pointing arrow of the Notarius custom indicator gets placed slightly below price bars as shown on Fig. 1.0, price is said to be taken higher i.e. a signal to buy the selected currency pair.
- If the blue line of the MFI_price.ex4 custom indicator break and hovers above the 50.00 level (refer to Fig. 1.0), the prevailing market sentiment is said to be bullish, hence a trigger to go long on the selected forex pair.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If during a buy signal the Notarius custom MT4 indicator displays a red downward pointing arrow that is placed slightly above the candles, an exit or take profit should be considered without delay.
- If the blue line of the MFI_price.ex4 custom indicator declines to break below the 50.00 level during a buy alert, it is an indication of weaning bulls power, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the Notarius custom indicator gets placed somewhat above price bars as depicted on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the designated forex pair.
- If the blue line of the MFI_price.ex4 custom indicator break and stays below the 50.00 level as seen on Fig. 1.1, the prevailing market sentiment is said to be bearish, hence a trigger to sell the designated forex pair.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell alert is ongoing, the Notarius custom MT4 indicator displays a lime green upward pointing arrow that is placed marginally below the candlesticks, an exit or take profit should be considered forthwith.
- If the blue line of the MFI_price.ex4 custom indicator surges to break above the 50.00 level during a sell alert, it is an indication of halting bears power, hence an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The Notarius.ex4 custom indicator is an experimental trend indicator with alerts on the basis of price averaging.
The Money Flow Index (MFI) is also known as volume-weighted RSI and was designed by Gene Quong and Avrum Soudack.
The MFI_price.ex4 indicator for MetaTrader4 is an oscillator that deploys both price and volume in gauging buying and selling pressures in the market.