Trading the foreign exchange market can be a hell of a task when things go wrong.
One of the things that can possibly go wrong is getting trapped on the wrong side of a trade, obviously what every trader prays against, but clearly a frequently experienced trading occurrence.
The Quantile eWaves forex trading strategy will not only help advanced traders to take advantage of the most profitable buy/sell trend, as newbies will also gain tons of profitable trades off its back.
The use of the Quantile_bands_1.3 and eWAVES forex indicators can only mean one thing, which is clear cut trade setups, where spotting trends quickly and gauging momentum are important characteristics of the indicators respectively.
MetaTrader4 Indicators: Quantile_bands_1.3.ex4 (Default Setting), eWAVES.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 (24 hour trading)
Currency Pairs: Any pair (EUR/USD, GBP/USD, AUD/USD,…)
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the middle line of the Quantile_bands_1.3 custom indicator turns lime green, price is said to be taken to the upside i.e. a trigger to buy the designated forex pair.
- If the histograms (lime green, dark green & orange) of the eWAVES custom indicator break above the 0.00 level as exemplified on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy trigger is said to be looming.
Stop Loss for Buy Entry: Place stop loss 5 pips below the green middle line of the Quantile bands indicator.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the middle line of the Quantile_bands_1.3 custom indicator turns sandy brown during a bullish alert, it is indicative of a bearish reversal, as such an exit or take profit will suffice.
- If an orange histogram forms below the 0.00 level as depicted on Fig. 1.0, while a buy alert is running, price is said to be making a probable U-turn, hence an exit or take profit is advice.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the middle line of the Quantile_bands_1.3 custom indicator turns sandy brown, price is said to be pushed lower i.e. a trigger to sell the selected currency pair.
- If the histograms (orange, maroon & red) of the eWAVES custom indicator gets aligned below the 0.00 level as illustrated on Fig. 1.1, the general market sentiment is said to be bearish, as such a sell trigger is said to be imminent.
Stop Loss for Sell Entry: Place stop loss 5 pips above the brown middle line of the Quantile bands indicator.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If the middle line of the Quantile_bands_1.3 custom indicator turns lime green during a bearish signal, it is indicative of a bullish reversal, as such an exit or take profit will do.
- If an orange histogram forms above the 0.00 level as exemplified on Fig. 1.1, while a sell alert is ongoing, price is said to be making a likely U-turn, hence an exit or take profit is recommended.
Sell Trade Example
About The Trading Indicators
The Quantile_bands_1.3.ex4 is a custom indicator that is designed to take after the Bollinger Bands, here its middle line is a combination of the two outer quantiles.
If both outer quantiles are showing the same trend i.e. color, those of the middle quantile is same as those of the other quantiles, else it is undetermined i.e. silver if you deploy the default settings.
The eWAVES.ex4 indicator deploys a colored histogram that is derived from Bill Williams Awesome Oscillator.
The histogram data calculates Elliot Waves 3, 4, and 5 and plots the count on the histogram window and the activity chart.