Ribbon Trend Line Forex Trading Strategy
The Ribbon Trend Line forex trading strategy is a versatile good working system that allows traders check in on market trends, while pinpointing tradeable opportunities.
It deploys three simple technical indicators into a single setup mechanism, to give the strategy its characteristic trend spotting, support/resistance level finder and price reversal finder respectively.
MetaTrader4 Indicators: MA ribbon filled.89.21.ex4 (Default Setting), Linear_Regression_Line.ex4 (Inputs Variable Modified; LRLPeriod=36), Forex_Trend_Signalsv1.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
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the red line of the MA ribbon filled.89.21 custom indicator intersects the blue Linear_Regression_Line.ex4 indicator in a bottom up manner as seen on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the stipulated forex pair.
- If the histograms (lime & yellow) of the Forex_Trend_Signalsv1 MT4 indicator gets aligned within the indicator window (see Fig. 1.0), the overall market sentiment is said to be bullish, as such a buy trigger is looming.
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 line of the MA ribbon filled.89.21 custom indicator intersect the blue Linear_Regression_Line.ex4 indicator to stay above it (refer to Fig. 1.0), bulls power is said to be weaning, hence an exit or take profit will suffice.
- If a red histogram gets displayed within the Forex_Trend_Signalsv1 MT4 indicator window as illustrated on Fig. 1.0, an exit or take profit is recommended.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the red line of the MA ribbon filled.89.21 custom indicator intersects the blue Linear_Regression_Line.ex4 indicator in a top downward fashion as depicted on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the selected currency pair.
- If the histograms (red & yellow) of the Forex_Trend_Signalsv1 MT4 indicator gets placed within the indicator window as exemplified in Fig. 1.1, the overall market sentiment is said to be bearish i.e. a trigger to go short on the pair of interest.
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 red line of the MA ribbon filled.89.21 custom indicator intersect the blue Linear_Regression_Line.ex4 indicator to stay below it (refer to Fig. 1.1), bears power is said to be halting, hence an exit or take profit will do.
- If a lime histogram gets displayed within the Forex_Trend_Signalsv1 MT4 indicator window during a sell alert, an exit or take profit is advised.
Sell Trade Example
About The Trading Indicators
The MA ribbon filled.89.21.ex4 is a custom indicator designed for Metatrader 4 and is based on moving averages.
The indicator offers a simple and quick way to determine trend direction and possible price reversals.
The Linear_Regression_Line.ex4 custom indicator is primarily used in determining the direction of a trend.
The indicator essentially measures the line of best fit for a price series.
The Forex_Trend_Signalsv1.ex4 custom indicator is made up of two moving averages and the CCI MT4 indicator period set at 236.
The lime colored vertical bars within the chart window indicates a bullish trend, the red vertical indicates a bearish trend and the yellow bars shows range-bound trend.