Pip Power Indicator Forex Trading Strategy
When the market goes against you, it is always wise to plan a system that allows you exit or close such positions.
A system that accepts little losses and then puts you back into the market to have another go at profits is appropriate – take small losses and avoid big losses.
The Pip Power Indicator forex trading strategy is built to minimize losses by closing the losing trades more fast and allowing big wins run.
The entire system makes use of a blend of simple technical tools i.e. the PIPQInd.ex4 and Bear_Bulls_Power.ex4 MT4 indicators that are deployed in scanning the market for trends and measuring bull/bear market strength respectively.
MetaTrader4 Indicators: PIPQInd.ex4 (Inputs Variable Modified; nPips=350.0, AlertMinutesB4Close=45, AlertEveryNMinutes=120, ATRmultiplier=1.35), Bear_Bulls_Power.ex4 (Inputs Variable Modified; MyPeriod=26)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the lime upward pointing arrow of the PIPQInd custom indicator pops up slightly below the candlesticks (see Fig. 1.0), the overall market sentiment is said to be bullish, as such a trigger to buy the designated fx pair.
- If the green histograms of the Bear_Bulls_Power custom indicator gets seen above the 0.00 level as depicted on Fig. 1.0, price is said to be taken higher, as such a buy alert will do.
Stop Loss for Buy Entry: Place stop loss below trading support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the red downward pointing arrow of the PIPQInd custom indicator gets displayed during a bullish trend, hence a bearish reversal is underway, as such an exit or take profit is recommended.
- If a red histogram of the Bear_Bulls_Power custom indicator gets put on display during bullish signal as depicted on Fig. 1.0, price is said to be making a U-turn away from its earlier stance, as such 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 PIPQInd custom indicator pops up somewhat above the candlesticks (check Fig. 1.1), the general market sentiment is said to be bearish, as such a trigger to sell the selected forex pair.
- If the red histograms of the Bear_Bulls_Power custom indicator gets aligned below the 0.00 level as illustrated on Fig. 1.1, price is said to be pushed lower, as such a trigger to go short is advised.
Stop Loss for Sell Entry: Place stop loss above trading resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If the lime upward pointing arrow of the PIPQInd custom indicator gets aligned fairly below price bars during a bearish trend, an exit or take profit is said to be imminent.
- If a green histogram of the Bear_Bulls_Power custom indicator pops up above the 0.00 level during bearish signal as shown on Fig. 1.1, price is said to be making a U-turn away from its earlier stance, as such an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The PIPQInd.ex4 custom indicator is a technical tool that is mostly used to define reversal points.
The Bear_Bulls_Power.ex4 custom indicator can be deployed to gauge the strength of the bulls and bears in the market and also offers alert to potential breakout.