There’s a vast amount of information that can be obtained from price action, even so, traders are always pleased to see the correct market trend.
A trading strategy that can catch the trend will always be every trader’s delight and we have designed one that can do just that, with a lot more other fun capabilities.
Learn how the Trend Magic forex strategy works below:
Chart Setup
MetaTrader4 Indicators: Trend Magic.ex4 (default setting), Flat_Trend_RSI.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
Download
Download the Trend Magic Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart setup is put on display:
- If the blue line of the Trend Magic custom indicator gets drawn somewhat below the candlesticks as depicted on Fig. 1.0, price is said to be taken higher i.e. a signal to go long on the FX pair of interest.
- If the deep sky blue vertical bars of the Flat_Trend_RSI.ex4 custom indicator is seen to be positioned above the 0.00 level (refer to Fig. 1.0), it is a trigger to buy the asset of choice.
Stop Loss for Buy Entry: Place stop loss 5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take precedence:
- If while a buy trend is ongoing, the line of the Trend Magic custom indicator turns red as seen on Fig. 1.0, an exit or take profit is duly recommended.
- If the Flat_Trend_RSI.ex4 custom indicator displays red vertical bars that are arranged below the 0.00 level, a bearish reversal is said to be looming, hence an exit or take profit will do.
Sell Entry Rules
Take up sell position(s) if the following holds true:
- If the red line of the Trend Magic custom indicator gets plotted somewhat above price bars as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the designated currency pair.
- If the red vertical bars of the Flat_Trend_RSI.ex4 custom indicator gets plotted below the 0.00 level as shown on Fig. 1.1, it is a trigger to sell the specified forex pair.
Stop Loss for Sell Entry: Place stop loss 5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during a sell alert the Trend Magic custom indicator line turns blue as illustrated on Fig. 1.1, it is a signal that points to weaning bears power, hence an exit or take profit is advised.
- If the Flat_Trend_RSI.ex4 custom indicator reverts to deep sky blue vertical bars that are placed above the 0.00 level during a sell signal, a bullish reversal is said to be imminent, hence an exit or take profit will suffice.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Flat Trend RSI is an enhanced Relative Strength Indicator that has its default period set to 14.
The Trend Magic custom indicator is a trend following indicator that combines both the CCI and the ATR indicators.