Signal Alert Forex Trading Strategy

The Signal Alert forex trading strategy consists of a trend following indicator and a buy/sell signal indicator.

It’s very easy to find profitable signals with this strategy if you follow the exact buy and sell trade rules of this FX strategy (as explained in detail below).

This strategy works best on low spread forex pairs, such as EUR/USD, USD/GBP and USD/JPY.

Chart Setup

MetaTrader4 Indicators: fxtrendpower.ex4 (default setting), HighLowsSignalAlert.ex4 (Inputs Variable Modified; HowManyCandles=4)

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 (preferred low spread pairs)

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the lawn green upward pointing arrow of the HighLowsSignalAlert.ex4 custom indicator gets positions below the candlesticks as shown on Fig. 1.0, it is an indication of a possible buy signal.
  2. If the blue horizontal base line of the fxtrendpower.ex4 custom indicator is seen within its indicator window, price is said to be pushed to the upside, hence a trigger to buy the stipulated currency pair.

Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the red downward pointing arrow of the HighLowsSignalAlert.ex4 custom indicator gets formed above the candlesticks during a buy alert, it is a trigger to exit or take profit at once.
  2. If the horizontal base line of the fxtrendpower.ex4 custom indicator turns gold while a buy signal is ongoing, price can be said to be reversing from its initial bullish stance, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow of the HighLowsSignalAlert.ex4 custom indicator gets placed below price bars as illustrated on Fig. 1.1, a sell signal is said to be looming.
  2. If the gold horizontal base line of the fxtrendpower.ex4 custom indicator gets placed within its indicator window, price is said to be pushed to the downside i.e. a signal to sell the asset of choice.

Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the lawn green upward pointing arrow of the HighLowsSignalAlert.ex4 custom indicator gets formed below price bars during a sell signal, it is a trigger to exit or take profit without delay.
  2. If the horizontal base line of the fxtrendpower.ex4 custom indicator turns blue while a sell signal is running, price can be said to be making a U-turn from its bearish stance, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The fxtrendpower.ex4 custom indicator deploys horizontal line in gold and blue colors to distinguish between bearish and bullish market signals respectively.

The HighLowsSignalAlert.ex4 custom indicator is a trend seeking technical study that displays lawn green and red arrows to define bullish and bearish market sentiments respectively.

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