Sen Kaufman 34 Forex Trading Strategy

Traders start out by overcomplicating things when they get started in the currency trading market.

A lot of times, they feel a complex trading strategy with many technical indicators must be better, instead of trying to keep things as simple as possible.

The Sen Kaufman 34 forex trading strategy has a simple buy and sell trade setup that allows you view the currency market from a very modest viewpoint.

Learn how to trade with this strategy:

Chart Setup

MetaTrader4 Indicators: kijun_sen_and_envelope.ex4 (Default Setting), KAMA.ex4 (Default Setting), 5_34_5.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 forex pair, Precious metals, BitCoin,..

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart setup gets put on display:

  1. If the dodger blue middle line of the kijun_sen_and_envelope.ex4 custom MT4 indicator crosses the thicker blue line of KAMA custom indicator in a bottom up fashion as seen on Fig. 1.0, price is said to be pushed higher i.e. a trigger to buy the stipulated currency pair.
  2. If the red line of the 5_34_5.ex4 custom indicator break above the 0.00 level as shown on Fig. 1.0, the sentiment in the market is said to be bullish, hence a trigger to buy the specified currency pair.

Stop Loss for Buy Entry: Place stop loss 1 pip below short-term support level.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a buy signal is ongoing, price closes below the dodger blue middle line of the kijun_sen_and_envelope.ex4 custom MT4 indicator, it is a signal to exit or take profit at once.
  2. If red line of the 5_34_5 custom indicator break below the 0.00 level as depicted on Fig. 1.0 while a buy signal is ongoing, more bulls are said to be closing their positions, hence an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the dodger blue middle line of the kijun_sen_and_envelope.ex4 custom MT4 indicator intersects the thicker blue line of KAMA custom indicator in a top downward manner (refer to Fig. 1.), price is said to be pushed lower i.e. a trigger to sell designated forex pair.
  2. If the red line of the 5_34_5 custom indicator break below the 0.00 level as seen on Fig. 1.1, the sentiment in the market is said to be bearish, hence a trigger to sell the currency pair of focus.

Stop Loss for Sell Entry: Place stop loss 1 pip above short-term resistance level.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell signal is running, price closes above the dodger blue middle line of the kijun_sen_and_envelope.ex4 custom MT4 indicator, it is a signal to exit or take profit without delay.
  2. If red line of the 5_34_5 custom indicator break above the 0.00 level as illustrated on Fig. 1.1 while a sell signal is continuing, more bears are said to be closing their positions, hence an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

Download the Sen Kaufman 34 Forex Trading Strategy

About The Trading Indicators

The Kaufman’s Adaptive Moving Average (KAMA) indicator for MetaTrader4 was developed by Perry Kaufman, to account for noise and volatility in the market.

Kama will carefully align with prices even when price swings are somewhat small and the noise is low.

The KAMA indicator can be used to determine time turning points, spot overall trend and filter price movements.

The Kijun_sen_and_envelope.ex4 custom indicator is an important member of the the Ichimoku Kinko Hyo indicator family and can be used to measure medium-term momentum.

The 5_34_5.ex4 is a custom indicator with an obvious strange name and oscillates around the 0.00 signal level.

It pops up in its own indicator window and comprises of two lines (light blue and a red).

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