Simple Line Forex Trading Strategy

When searching the market for interesting trades, one thing that comes to mind is having the right tool that will allow you do this.

The Simple Line forex trading strategy is a trading strategy that is designed to spot trendy currency markets and allow you profit from such moves.

Chart Setup

MetaTrader4 Indicators: (T_S_R)-Execute Line.ex4 (Input Variable Modified; period=22), 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 (London, New York, Tokyo)

Currency Pairs: Any pair

Download

Download the Simple Line Forex Trading Strategy

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 (T_S_R)-Execute Line indicator turns yellow with price aligned somewhat above the line, it is an indication of upward price pressures, hence a trigger to buy the designated currency pair.
  2. If the red line of the 5_34_5 custom indicator breaks above the 0.00 level as seen on Fig. 1.0, it is an indication of bullish sentiment, hence a trigger to buy the specified currency pair.

Stop Loss for Buy Entry: Place stop loss 5 pips below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions are in place:

  1. If the (T_S_R)-Execute Line indicator turns magenta during an ongoing buy signal, a possible price reversal is said to be looming i.e. an exit or take profit is recommended.
  2. If the red line of the 5_34_5 custom indicator break below the 0.00 level during a bullish trend, it is an indication of weaning bulls power, hence an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the (T_S_R)-Execute Line indicator turns magenta with price trading somewhat below the line as illustrated on Fig. 1.1, it is an indication of downward price pressures i.e. a signal to sell the currency pair of focus.
  2. If the red line of the 5_34_5 custom indicator falls below the 0.00 level as seen on Fig. 1.1, it is an indication of a looming bearish sentiment, hence a trigger to sell the listed forex pair.

Stop Loss for Sell Entry: Place stop loss 5 pips above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the (T_S_R)-Execute Line indicator turns yellow during an ongoing sell alert, a possible price reversal is said to be forthcoming i.e. an exit or take profit is advised.
  2. If the red line of the 5_34_5 custom indicator break above the 0.00 level during a bearish signal, it is an indication of halting bears power, hence an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

Download the Simple Line Forex Trading Strategy

About The Trading Indicators

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).

The (T_S_R)-Execute Line is a moving average indicator line that has a default period and method of 5 and 3 respectively.

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