The nature of the forex market requires caution, adequate information and the execution of a well laid out plan and strategy.
So many traders miss out on this, and tend to have a sour experience, with bitter stories to tell.
To avoid such scenarios, you’ll need to enter the market using a great strategy such as the one below.
The Ribbon Squeeze Light forex trading strategy will deliver prompt and accurate tradable signals once it is plugged in the price chart.
Its uniqueness is hinged on its ability to spot volatility in the market, considering that it uses the my_squeeze_Light.ex4 custom indicator and also measure price lag through the 28 SMA.
MetaTrader4 Indicators: MA ribbon filled.89.21.ex4 (Inputs Variable Modified; MA1Period=18), 28 SMA.ex4 (Parameters Modified; Shift=2, Style=Blue), my_squeeze_Light.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 displayed:
- If the blue line of the 28 SMA (simple moving average) intersects the lines (red & lime) of the MA ribbon filled.89.21 custom indicator in a bottom up manner 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 histograms (blue & lime) of the my_squeeze_Light.ex4 custom indicator gets positioned above the 0.00 level as indicated on Fig. 1.0, a buy signal is said to be looming.
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 takes precedence:
- If while a buy signal is ongoing, price closes below the blue line of the 28 SMA indicator, it is a signal to exit or take profit at once.
- If a histogram (most likely red or blue) forms below the 0.00 level while a buy signal is running, it is a signal to exit or take profit without delay.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue line of the 28 SMA MT4 indicator intersects the lines (lime & red) of the MA ribbon filled.89.21 custom indicator in a top downward fashion as depicted on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the currency pair of interest.
- If the histograms (red & blue) of the my_squeeze_Light.ex4 custom indicator gets placed below the 0.00 level as seen on Fig. 1.1, a sell signal is said to be imminent.
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 center stage:
- If while a sell signal is running, price closes above the blue line of the 28 SMA indicator (refer to Fig. 1.1), it is a signal to exit or take profit forthwith.
- If a histogram (blue or lime) forms above the 0.00 level while a sell signal is ongoing, it is a signal to exit or take profit straight away.
Sell Trade Example
About The Trading Indicators
The MA ribbon filled.89.21.ex4 is a custom indicator designed for Metatrader 4 platforms that is based on moving average.
The indicator offers a simple and quick way to determine the trend direction and possible price reversals.
The my_squeeze_Light.ex4 custom indicator is designed from the Bollinger Squeeze along with the MACD, and deploys colored (lime, red and blue) histograms to determine price swings.
The 28 SMA is a simple moving average (SMA), which is the average price over a given number of time periods, and we did set it at 28 periods.