Trading currencies can be quite energetic, but with the right trading strategy it becomes an enjoyable task to get along with.
Intraday currency traders will find the UP/Down Bars forex strategy quite helpful, considering its high win rate and its simplicity.
Chart Setup
MetaTrader4 Indicators: UpDownBars.ex4 (default setting), Ultimate_MA.ex4 (default setting), Turn_Area_Chart.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 Forex Up/Down Bars 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:
- If the medium violet red line of the Ultimate_MA.ex4 custom indicator intersects the Turn_Area.ex4 indicator lines bottom up with price trading somewhat above as illustrated on Fig. 1.0, price is said to be pressured to the upside, hence a trigger to go long on the pair of interest.
- If the red bars of UpDownBars.ex4 custom indicator forms above the 0.00 level as shown on Fig. 1.0, the prevalent market sentiment is said to be bullish, as such a trigger to buy the designated currency pair.
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 takes precedence:
- If the medium violet red line of the Ultimate_MA.ex4 custom indicator crosses the Turn_Area.ex4 indicator lines top downward during a bullish trend, it is a signal of weaning bulls power i.e. an exit or take profit is recommended.
- If the red bars of the UpDownBars.ex4 custom indicator readjust to form below the 0.00 level during a buy alert, it is a signal to exit or take profit at once.
Sell Entry Rules
Take up sell position(s) if the following holds true:
- If the medium violet red line of the Ultimate_MA.ex4 custom indicator intersects the Turn_Area.ex4 indicator lines top downward with price trading somewhat below as seen on Fig. 1.1, price is said to be pushed lower, hence a trigger to go short on the asset of choice.
- If the red bars of UpDownBars.ex4 custom indicator pops up below the 0.00 level as depicted on Fig. 1.1, the dominant market sentiment is said to be bearish, as such a trigger to sell the selected fx pair.
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 takes center stage:
- If the medium violet red line of the Ultimate_MA.ex4 custom indicator crosses the Turn_Area.ex4 indicator lines bottom while a bearish trend is ongoing, it is a signal of halting bears power i.e. an exit or take profit is recommended.
- If the red bars of the UpDownBars.ex4 custom indicator readjust to form above the 0.00 level during a sell trigger, it is a signal to exit or take profit immediately.
Sell Trade Example
Fig. 1.1
Free Download
Download the Forex Up/Down Bars Forex Trading Strategy
About The Trading Indicators
The Ultimate_MA.ex4 is a modified moving average that computes the weighted average of 3 moving averages (Simple, Exponential, Smoothed or Linear Weighted).
It has been shown to follow trend better than the single moving average and a good alternative to EMA or SMA for traders who don’t like untidiness.
The Turn_Area_Chart.ex4 is a trend following custom indicator that incorporates the exponential moving average method and relative strength index in defining price action.
The UpDownBars.ex4 custom oscillator indicator that counts up bars (Close-Open) and down bars (Open-Close).