Proven Forex Trend Trading Strategy

There are times when you obviously feel you don’t have a clue about what’s going on in the market, and it is advisable to step aside for a while.

The currency market as we know it does not wait for anyone, as it’ll continue to play itself out.

After refreshing yourself while staying off the market, you can try out the Proven Forex Trend trading strategy.

This forex strategy is based on the VR moving average and an advanced histogram indicator.

The VR moving average will look for trend direction and buy/sell signals will be delivered with the help of the histogram indicator.

Chart Setup

MetaTrader4 Indicators: vr_moving_average.ex4 (Input Variable Modified; Period=28), William36HistogramWallerTest.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 (London, New York, Tokyo)

Currency Pairs: Any pair

Download

Download the Proven Forex Trend Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the vr_moving_average.ex4 custom MT4 indicator line turns blue with price trading somewhat above, the sentiment in the market is said to be bullish i.e. a trigger to buy the stipulated FX pair.
  2. If the lime green histograms of the William36HistogramWallerTest custom indicator gets aligned above the 0.00 level as indicated on Fig. 1.0, a buy entry is said to be favored.

Stop Loss for Buy Entry: Place stop loss 1 pip below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the line of the vr_moving_average.ex4 custom indicator turns red while a buy alert is running (refer to Fig. 1.0), traders are advised to exit or take profit on their position(s).
  2. If the histograms of the William36HistogramWallerTest custom indicator readjust to form a red histogram below the 0.00 level, it is a trigger to exit or take profit forthwith.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the vr_moving_average.ex4 custom MT4 indicator line turns red with price trading somewhat below as shown on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to sell the designated FX pair.
  2. If the red histograms of the William36HistogramWallerTest custom indicator gets aligned below the 0.00 level as depicted on Fig. 1.1, a sell order is preferred.

Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the line of the vr_moving_average.ex4 custom indicator turns blue while a sell alert is ongoing as depicted on Fig. 1.1, an exit or take profit is duly advised.
  2. If the histograms of the William36HistogramWallerTest custom indicator readjust to form a lime green histogram above the 0.00 level, it is a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The vr_moving_average.ex4 is a custom indicator that is basically a modified version of the standard moving average.

The indicator is able to spot patterns and uniqueness in price dynamics which are undetectable to the naked eye.

With no known author, the William36HistogramWallerTest.ex4 custom indicator is designed to reveal market trends.