Simple Fisher Forex Trading Strategy

The Simple Fisher forex trading strategy is designed to keep you on the right side of the market. Being on the right side of the market means more profits!

This strategy uses the popular Donchian indicator to help you plan your trades and also trade the plan.

The concept is quite simple and I’ll advice that you start learning this awesome strategy now to increase the number of your profitable trades.

Chart Setup

MetaTrader4 Indicators: FBS Fisher.ex4 (Input Variable Modified; period=24), Doda-Donchian.ex4 (Colors Width Modified; #2=2), 14 EMA

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

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the red line of the Doda-Donchian.ex4 custom indicator crosses the blue 14 EMA line in a bottom up fashion, price is said to be taken higher, hence a signal to buy the designated currency pair.
  2. If the gold and red vertical bars of the FBS Fisher custom MT4 indicator get aligned above the 0.00 level as shown on Fig. 1.0, price is said to be pressured higher i.e. a trigger to buy the stipulated forex pair.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price closes below the red line of the Doda-Donchian.ex4 custom indicator or if the red Doda-Donchian.ex4 custom indicator line intersects the blue 14 EMA line as shown on Fig. 1.0, an exit or take profit is duly advised.
  2. If while a buy alert if running, the gold histograms of the FBS Fisher custom MT4 indicator forms below the 0.00 level, bulls power is said to be halting, as such an exit or take profit is recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red line of the Doda-Donchian.ex4 custom indicator intersects the blue 14 EMA line in a top downward manner, price is said to be pushed lower, hence a signal to sell the currency pair of interest.
  2. If the gold and lime vertical bars of the FBS Fisher custom MT4 indicator get aligned below the 0.00 level as depicted on Fig. 1.1, the prevalent market sentiment is said to be bearish, as such a sell alert is on the horizon.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price closes above the red line of the Doda-Donchian.ex4 custom indicator (refer to Fig. 1.1) or if the red Doda-Donchian.ex4 custom indicator line intersects the blue 14 EMA, an exit or take profit is recommended.
  2. If while a bears market is ongoing, the gold histograms of the FBS Fisher custom MT4 indicator forms above the 0.00 level, it is pointing towards weaning bears power, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The FBS Fischer custom indictor is a technical tool that tries to pinpoint trend direction, trend changes and trend strength in view of market action.

The Doda-Donchian.ex4 is a custom indicator produced by Gopal Krishan Doda and popularly known as the turtle indicator.

It is a trend following indicator that deploys the EMA (120) coupled with other values to eliminate noise when scanning the market for trend changes

The 14 EMA is an exponential moving average that has its period set at 14 and reduces the lag by adding more weight to recent price.

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