The foreign exchange market is interesting and challenging for prospective forex traders and getting the right information before committing your hard earned cash is paramount to your success.
The market is clearly not for everyone and equipping yourself with the right tools will definitely put the odds in your favor.
The Prime Trend forex trend following trading strategy won’t make you a millionaire instantly, but will work you through the currency market on consistent profits.
The Trend_Bands.ex4 custom indicator gives us a great insight into price volatility, alongside trend, while the FXprime_V2 Final-JE.ex4 MT4 indicator gauges the strength of the trend.
MetaTrader4 Indicators: Trend_Bands.ex4 (Default Setting), FXprime_V2 Final-JE.ex4 (Default Setting)
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 pattern gets put on display:
- If price opens and closes above the middle line of the Trend_Bands.ex4 custom indicator as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the stipulated currency pair.
- If the horizontal lime green bar of the FXprime_V2 Final-JE MT4 indicator gets aligned within the indicator window as depicted on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the selected forex pair.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take precedence:
- If a candle opens and closes wholly below the middle magenta line of the Trend_Bands.ex4 custom MT4 indicator, a bearish reversal is said to be looming, hence an exit or take profit is recommended.
- If a fire brick horizontal bar forms within the FXprime_V2 Final-JE MT4 indicator window, it is an indication of weaning bulls power, as such an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds true:
- If price opens and closes below the middle line of the Trend_Bands.ex4 custom indicator as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the currency pair of focus.
- If the horizontal fire brick bar of the FXprime_V2 Final-JE MT4 indicator gets positioned within the indicator window as illustrated on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to sell the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If a candle opens and closes wholly above the middle magenta line of the Trend_Bands.ex4 custom MT4 indicator, a bullish reversal is said to be imminent, hence an exit or take profit is advised.
- If a lime green horizontal bar forms within the FXprime_V2 Final-JE MT4 indicator window, it is an indication of halting bears power, as such an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The Trend_Bands.ex4 is an indicator that resembles the Bollinger Bands, but it is set at a default period (34).
When price trades along the upper outer bands, it is suggestive of a bullish signal, while it is a bearish alert when price hovers around the lower outer band.
The FXprime_V2 Final-JE.ex4 custom indicator on the other hand, is an indicator that is a blend of the RSI and Moving Average.