Simple Trend Forex Signals Trading Strategy

You don’t want to be caught on the wrong side of a trend, as this could be quite a painful experience.

Most times traders could decide on being patient with the market until it gets back to their favored direction or some investors might just go ahead on cutting their losses.

None of the decisions aforementioned comes easy, the former might prompt the need for refunding current positions that are in massive drawbacks, while the later just means forfeiting a chunk of your equity.

The Simple Trend forex signals trading strategy is designed to keep you away from such market eventualities.

Chart Setup

MetaTrader4 Indicators: -wmmm-twoPoleButterworth.ex4 (Input Variable Modified; CutoffPeriod=30), Volatility Hyper Trend.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 pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy position if the following indicator or chart setup gets displayed:

  1. If the blue upward pointing arrow of the Volatility Hyper Trend custom indicator get aligned below the candlesticks as shown on Fig. 1.0, price is said to be pressured higher i.e. a signal to buy the designated currency pair. The thick red line of the Volatility Hyper Trend custom indicator crosses its thin green line in a bottom up fashion within its window, as further confirmation of a buy signal.
  2. If the blue line of the -wmmm-twoPoleButterworth.ex4 custom indicator get aligned somewhat below the candlesticks as depicted on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to buy the asset of choice.

Stop Loss for Buy Entry: Place stop loss 1 pip below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. Watch out for the red line of the Volatility Hyper Trend custom indicator, if it changes to blue during the course of a buy trend, an exit or take profit is recommended.
  2. If the blue line of the -wmmm-twoPoleButterworth.ex4 custom indicator suddenly becomes red while a buy signal is running, an exit or take profit should be considered.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow of the Volatility Hyper Trend custom indicator get aligned above the candlesticks as seen on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the designated forex pair. The thick blue line of the Volatility Hyper Trend custom indicator crosses its thin green line in a top downward manner within its window, as further confirmation of a sell signal.
  2. If the red line of the -wmmm-twoPoleButterworth.ex4 custom indicator get aligned somewhat above the candlesticks as illustrated on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to sell the asset of choice.

Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. Watch out for the blue line of the Volatility Hyper Trend custom indicator, if it turns red during the course of a sell trend, an exit or take profit is advised.
  2. If the red line of the -wmmm-twoPoleButterworth.ex4 custom indicator suddenly becomes blue while a sell signal is running as seen on Fig. 1.1, an exit or take profit should be considered.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The -wmmm-twoPoleButterworth.ex4 custom indicator is a modified moving average indicator that is deployed in measuring trend.

The Volatility Hyper Trend custom indicator is a custom MT4 indicator that does not repaint and delivers alert signals.