Up Down Bars Forex Trading Strategy

The Up Down Bars forex strategy offers traders an easy way to spot new buy and sell trading signals on the currency chart for any currency pair.

It consists of two simple to understand custom MT4 build technical analysis indicators that anyone can start using for free!

Let me explain below how this strategy works:

Chart Setup

MetaTrader4 Indicators: Ind-GG01.ex4 (default setting), UpDownBars.ex4 (Input Variable modified; period=65)

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

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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 lime upward pointing arrow of Ind-GG01.ex4 custom indicator gets displayed as shown on Fig. 1.0, price is said to be pressured to the upside, hence a trigger to buy the desired currency pair.
  2. If the red vertical bars of the UpDownBars.ex4 custom indicator gets displayed within the indicator window as illustrated on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to buy the designated currency pair.

Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the gold colored rhombus shaped objects of the Ind-GG01.ex4 custom indicator pops up on the activity chart as seen on Fig. 1.0, it is an indication that sellers are outnumbering buyers in the market, hence an exit or take profit will do.
  2. If red vertical bars of the UpDownBars.ex4 custom indicator realign below the 0.00 level when a bullish signal is ongoing, it points to weaning bulls power in the market, as such an exit or take profit will do.

Sell Entry Rules

Initiate a sell entry if the following holds true:

  1. If the gold colored rhombus shaped objects of the Ind-GG01.ex4 custom indicator gets displayed on the activity chart as seen on Fig. 1.1, price is said to be pushed lower, hence a trigger to sell the currency pair of focus.
  2. If the red vertical bars of the UpDownBars.ex4 custom indicator takes up space below the 0.00 level within the indicator window as shown on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to sell the specified forex pair.

Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds sway:

  1. If the lime colored upward pointing arrow of the Ind-GG01 custom indicator pops up on the activity chart as seen on Fig. 1.1, it is an indication that buyers are outnumbering sellers in the market, hence an exit or take profit will suffice.
  2. If vertical bars of the UpDownBars.ex4 custom indicator readjust to form above the 0.00 level, it points to halting bears power in the market, as such an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The UpDownBars.ex4 custom oscillator indicator counts the number of up bars (Close-Open) and down bars (Open-Close).

The Ind-GG01 custom indicator gives you a Buy or Sell signal. It uses Moving Averages, Parabolic SAR and Bollinger Bands in doing this.

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