Vegas Forex Trading Strategy
The beauty of trading currencies online lies largely in its flexibility, ease and accessibility, where just about anyone can participate in the world’s biggest marketplace.
The Vegas forex trading strategy is one of such trading systems that delivers nice profits, easy to use and suitable for beginners and expert traders.
MetaTrader4 Indicators: Vortex Indicator.ex4 (Inputs Variable modified; VI_Length=60), Volume_Weighted_MA.ex4 (Inputs Variable modified; Period_MA=42), Vegas.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
Buy Trade Example
Long Entry Rules
Initiate a buy order if the following indicator or chart pattern gets displayed:
- If the lines (mostly red) of the Vegas custom indicator cuts through the deep pink line of the Volume_Weighted_MA.ex4 indicator bottom up as seen on Fig. 1.0, price is said to be taken higher, hence an alert to buy the fx pair of choice.
- If the green line of the Vortex Indicator aligns above the indicators’ red line, it is a signal of bullish sentiment. The more the gap/distance between the lines, the stronger the trend (refer to Fig. 1.0).
Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If price closes below the lines of Vegas custom indicator, it is a pointer to weaning Bulls power in the market, hence a trigger to exit or take profit at once.
- If the green line of the Vortex Indicator intersects its red line downwards as seen on Fig. 1.0, it is signal possible downward price pressures, hence an exit or take profit is recommended.
Sell Entry Rules
Initiate a sell trigger if the following holds sway:
- If the lines (mostly red) of the Vegas custom indicator cuts through the deep pink line of the Volume_Weighted_MA.ex4 indicator top downward as illustrated on Fig. 1.1, the sentiment in the market is said to be somewhat bearish, as such a sell trigger is advised.
- If the green line of the Vortex Indicator aligns below the indicators’ red line, it is an alert warning of a possible bearish price trend, as such short entries should be initiated without delay (refer to Fig. 1.1).
Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price closes above the lines of Vegas custom indicator, it is an indication that sellers are exiting the marketplace and downward momentum could revert i.e. an exit or take profit will suffice.
- If the green line of the Vortex Indicator intersects its red line upwards as shown on Fig. 1.1, it is a signal that points to a reversal away from the current trend, as such an exit or take profit is highly recommended.
Sell Trade Example
About The Trading Indicators
The Vortex Indicator is a volatility–modified trend indicator, that aids traders spot short term trends, trading opportunities and at the same time determine when a trend is absent.
It is made up of two lines that gauge upward and downward price movements.
The Volume_Weighted_MA.ex4 custom indicator shares a lot of similarity to the simple moving average; nevertheless, the Volume Weighted MA places a lot more emphasis on the volume in a given period of time.
The general concept about the Volume_Weighted_MA.ex4 indicator is that price is given more weight during heavy trading action.
The Vegas custom indicator is series of eight moving average lines that are drawn on the activity chart to define trend.