The TTF Histogram forex trading strategy is deployed to spot trends early and to generate powerful buy and sell forex signals.
The strategy combines basic indicators that when considered together offer a simple setup for just about anyone in the currency trading niche.
Chart Setup
MetaTrader4 Indicators: TTF_hist.ex4 (Inputs Variable modified; TTFbars=18), Keltner_Channel.ex4 (default settings), IDWma.ex4 (default settings)
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:
- If the red line of the IDWma.ex4 custom indicator intersects the middle blue line of the Keltner_Channel.ex4 indicator bottom up as shown on Fig. 1.0, price is said to be pushed higher, hence a trigger to go long on the pair of interest.
- If the light sea green histograms of the TTF_hist.ex4 custom indicator aligns above the 0.00 signal level as illustrated on Fig. 1.0, price is said to be bullish.
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 take precedence:
- If the red line of the IDWma.ex4 custom indicator crosses the middle blue line of the Keltner_Channel.ex4 indicator top downward during an ongoing buy trend, it is an indication of weaning bulls’ power, hence an exit or take profit trigger is needed.
- If the light sea green histograms of the TTF_hist.ex4 custom indicator readjust to form below the 0.00 level during an ongoing buy signal in the market, it is a push to exit or take profit at once.
Sell Entry Rules
Take up sell position(s) if the following holds true:
- If the red line of the IDWma.ex4 custom indicator intersects the middle blue line of the Keltner_Channel.ex4 indicator top downward as illustrated on Fig. 1.1, price is said to be pressured lower, hence a trigger to sell the designated forex pair.
- If the light sea green histograms of the TTF_hist.ex4 custom indicator aligns below the 0.00 signal level as seen on Fig. 1.1. The sentiment in the market is said to be bearish i.e. a sell trigger.
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 holds sway:
- If the red line of the IDWma.ex4 custom indicator crosses the middle blue line of the Keltner_Channel.ex4 indicator in a bottom up fashion during an ongoing sell alert, it is an indication of halting bears’ power, hence an exit or take profit trigger is recommended.
- If the light sea green histograms of the TTF_hist.ex4 custom indicator readjust to form above the 0.00 level during an ongoing sell signal in the market, it is a push to exit or take profit without delay.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Keltner_Channel.ex4 custom indicator became renowned in Kester Cheltner’s book “How to Make Money in Commodities” and is essentially a volatility-based envelope that is placed above and below an exponential moving average.
The Inverse Distance Weighted Moving Average (IDWma) is a custom indicator that is most sensitive to price moves and has its MA period set at a default of 14.
The TTF_hist.ex4 is made of light sea green histograms and a dotted red line and will most align above/below the 0.00 level to define bulls/bears market conditions.