Prime 5 finest Foreign exchange tendencies for methods that work

Trend following strategies are trading strategies in which traders only trade in a trend market and trading directions go in the direction of the trend. If the price keeps rising, traders should buy. If the price keeps falling, traders should sell the market or sell it short.

Trend trading sticks to the idea that trades should take place where the market is flowing. It is a very logical trading philosophy, since trading the market flow is supposed to be easier than trading it. Imagine swimming upstream against the river. Wouldn't it be easier to swim downstream? The same idea applies to trend following. Traders try to identify the direction of the trend and trade with it.

There are many ways to trade the trend. Some trade retracements while others trade at the beginning of a dynamic. Others only trade technical indicator signals, while others only trade price movements.

Below are five different strategies that traders can use in an established trend market.

MA Retrace Forex Trend by Strategy

Trading established trends is very logical. If you look at historical graphs and use an indicator that could help traders identify the trend, you'll see how predictable price movements are once the trend is identified.

Despite its seemingly very predictable movement patterns, trading with established trends is often very difficult. This is because most trend-following strategies require traders to trade when the price is at its peak in its current expansion phase.

Instead of buying when the market is at the height of an upward trend or at the low of a downward trend, traders should trade on the retracements. Traders who have learned the ability to schedule retracement entries could easily make money from a trend market.

Guppy multiple moving average

Moving averages are probably the simplest types of indicators. However, this simple indicator is probably one of the most effective tools that traders could use in a trendy market environment.

The price moves in a series of expansions and retracements during a trend market. The price would quickly move in the direction of the trend and then return to its average. Logic would tell us that it is best to enter trades during a retracement in the direction of the trend and exit the trade in the expansion phase. However, this is easier said than done. It is quite difficult to schedule retracements.

Moving averages are often used as a measure of the depth of a retracement. This way, traders can better judge whether or not the price has dropped low enough to warrant an entry based on traceability. The price often recovered from the moving averages and is therefore often used as a dynamic support and resistance area.

The Guppy Multiple Moving Average (GMMA) is a trend following indicator that uses multiple moving averages. This creates a band of moving averages that expand and contract during a trend market as the trend wears off.

It is also an effective tool to use as a dynamic area of ​​support and resistance. The price often returned to moving averages and recovered during a trendy market situation.

MUV display

The MUV indicator is a modified moving average indicator based on Tom Demark's TD Moving Average.

This custom moving average indicator should identify stop loss placements and exit points. However, in a trend market with multiple retracements, it can also be used to identify the end of a retracement. This is the case when the price closes after retracing an uptrend above or retracing a bearish trend below.

Trading strategy

This trading strategy is a simple trend-following strategy that provides entries immediately after a retracement.

It uses the guppy multiple moving average indicator as the basis for the depth of retracement and the dynamic range of support and resistance. The price should go back towards GMMA and then bounce off. When the price bounces off the GMMA lines, it should close beyond the MUV line to indicate that the retracement has ended and the price is ready to begin a new phase of expansion towards the trend.

In order to adapt the trades to the long-term trend, the 200 Exponential Moving Average (EMA) is used as a trend filter. The price as well as the MUV and GMMA lines should be on the right side of the 200 EMA according to the trend direction.

Indicators::

  • 200 EMA
  • MUV.ex4
  • GMMA_Long.ex4

Time frame: 15-minute, 30-minute, 1-hour, 4-hour and daily charts

Currency pairs: Main and secondary pairs

Trading session: Meetings in Tokyo, London and New York

Buy trade setup

entry

  • The price, the MUV line and the GMMA line should be above 200 EMA, which indicates an upward trend.
  • The 200 EMA should trend higher, indicating a bullish long-term trend.
  • The price should go back towards and bounce off the GMMA lines.
  • The price should then close above the MUV line and indicate the end of the retracement and the likely start of a bullish expansion phase.
  • Place a purchase order upon confirmation of the above conditions.

Stop loss

  • Set the stop loss on the fractal below the entry candle.

Take profit

  • Set the take profit target to 1.5 times the risk for the stop loss.

MA Retrace Forex Trend by Strategy 1

MA Retrace Forex Trend by Strategy 2

Sell ​​Trade Setup

entry

  • The price, the MUV line and the GMMA line should be below 200 EMA, indicating a downward trend.
  • The 200 EMA should fall, indicating a declining long-term trend.
  • The price should go back towards and bounce off the GMMA lines.
  • The price should then close below the MUV line and indicate the end of the decline and the likely start of a declining expansion phase.
  • Enter a sales order upon confirmation of the above conditions.

Stop loss

  • Set the stop loss on the fractal above the entry candle.

Take profit

  • Set the take profit target to 1.5 times the risk for the stop loss.

MA Retrace Forex Trend by Strategy 3

MA Retrace Forex Trend by Strategy 4

Conclusion

This type of trading strategy is one of the most basic types of trend-following strategies. It offers reentries based on retracements towards a dynamic range of support or resistance, so traders can enter trades at a better price instead of tracking the price in the expansion phase.

This strategy uses a fixed 1.5x reward-risk ratio. However, traders with a different risk appetite could optimize this. A higher multiplier for the take-profit goal offers a better reward-risk ratio, but could probably lower the profit ratio, while lower multipliers could improve the profit ratio and lower the reward-risk ratio.

Other traders choose to end trades manually instead of using a fixed profit rate. In theory, this should give the best results, but fear, greed, and other emotional factors often cause traders to either exit trading too early or close profitable trading too late. This often leads to lower growth expectations for the trading account.

Fisher Optimum Forex Trend by Strategy

Another key to identifying trade entry opportunities in a trendy market environment is to use disruptions and realignment of mergers as an indication of a temporary retracement and a resumption of a trend.

Conflicts are an integral part of most strategies, and trend-following strategies are no exception. Traders often start trading when trading signals coming from different indications match. Trades that come from a confluence of factors often lead to a trend. There are cases where one or two of the factors that indicate the trend direction would temporarily reverse. This is often the case when there is a retracement. However, it is only temporary. The trend can resume its original trend direction as soon as the confluence coincides.

The Fisher Optimum Forex trend following strategy is a strategy that uses an indicator to identify short term retracements during an emerging market situation.

i-AMA Optimum

The i-AMA Optimum indicator is a custom indicator based on the Adaptive Moving Average (AMA) developed by Perry Kaufman.

The i-AMA Optimum is a modified indicator for the moving average, which is optimized to identify medium and long-term trends. It is characterized by a moving average line that closely follows the price in a low-noise market environment, but also tends to be smoother than other moving averages in a troubled market.

Fisher Yur4ik

The Fisher Yur4ik indicator is an oscillating indicator that displays histogram bars to indicate the trend direction. Positive bars indicate an upward trend, while negative bars indicate a downward trend.

The Fisher Yur4ik indicator thrives on the short and medium term trends. Brief fluctuations due to retracements can cause the Fisher Yur4ik indicator to temporarily reverse, even if the long-term trend is still there.

Trading strategy

The Fisher Optimum Forex trend following strategy is a strategy that deals with retracements towards the medium term mean while the long term trend still exists and is clearly in trend.

The 200 Exponential Moving Average (EMA) line is used to identify the long-term trend direction. The trend direction is based on the price location in relation to the 200 EMA. A price above 200 EMA indicates an upward trend, while a price below 200 EMA indicates a downward trend. In addition to the price, the i-AMA Optimum should also be on the right side of the 200 EMA. The i-AMA Optimum line should be in an upward trend above the 200-EMA line and in a downward trend below the 200-EMA line.

Aside from the position of the price and the i-AMA line, the slope of the 200 EMA would also be used to indicate the trend direction. Upward 200 EMAs indicate an upward trend, while downward 200 EMAs indicate a bearish trend. Steeper slopes indicate a stronger trend, while flat slopes indicate a weak trend.

In order to identify a valid entry, the price should decrease in the direction of the i-AMA Optimum range. This retracement should cause the Fisher Yur4ik bars to temporarily reverse. It is assumed that the trend will resume its original direction as soon as the Fisher Yur4ik indicator matches the trend direction of the 200 EMA. This should also be reconciled with the price crossing using the i-AMA optimum indicator in the direction of the prevailing trend.

Indicators:

  • 200 EMA
  • i-AMA-Optimum.ex4
  • Fisher_Yur4ik.ex4

Time window: 15-minute, 1-hour and 4-hour charts

Currency pairs: Major and minor pairs

Trading session: Meeting in Tokyo, London and New York

Buy trade setup

entry

  • The price should be above 200 EMA, indicating a bullish long-term trend.
  • The i-AMA Optimum line should be over 200 EMA.
  • The 200 EMA line should fall higher, indicating a bullish long-term trend.
  • The price should go in the direction of the i-AMA Optimum line.
  • The Fisher Yur4ik display should temporarily display negative red histogram bars during the retracement.
  • Place a purchase order as soon as the Fisher Yur4ik bars become a positive lime histogram while the candle holder closes as a bullish candle.

Stop loss

  • Set the stop loss on the fractal below the entry candle.

output

  • Close the trade as soon as the Fisher Yur4ik indicator prints negative red bars.

Fisher Optimum Forex Trend by Strategy 1

Fisher Optimum Forex Trend by Strategy 2

Sell ​​Trade Setup

entry

  • The price should be below 200 EMA, indicating a declining long-term trend.
  • The i-AMA Optimum line should be below 200 EMA.
  • The 200 EMA line should fall lower, indicating a declining long-term trend.
  • The price should go in the direction of the i-AMA Optimum line.
  • The Fisher Yur4ik indicator should temporarily display positive lime histogram bars during the retracement.
  • Place a sell order as soon as the Fisher Yur4ik bars receive a negative red histogram while the candle holder closes as a bear candle.

Stop loss

  • Set the stop loss on the fractal above the entry candle.

output

  • Close the trade as soon as the Fisher Yur4ik indicator prints positive lime bars.

Fisher Optimum Forex Trend by Strategy 3

Fisher Optimum Forex Trend by Strategy 4

Conclusion

This trading strategy is an excellent trend-following strategy that deals with retracements. Trading setups with potentially high reward-risk ratios are created. This enables traders to make big profits with just a few trades. However, tight stop losses often result in trades being stopped prematurely. This is because the Fisher Yur4ik indicator can sometimes be a little early to reverse. Traders could choose to place the stop loss a bit further so that the price has some leeway. This would reduce the reward-risk ratio but improve the profit ratio.

It is also best to use this strategy in conjunction with a price action strategy. It could be either a breakout of a support or resistance line or a candle pattern. Trades combined with price promotions often produce better results.

Fibonacci pullback forex trend by strategy

Although trading in price promotions seems to contrast strongly with trading technical analysis based on technical indicators, trading in price promotions is another form of technical analysis that works well in trading. In fact, there are traders who swear to only trade on bare charts and price action analysis.

The nice thing about trading price movements is that they are based on analyzes that theoretically have little delay. The only delay that traders get is when they wait for the candle to close. This enables traders to plan the entry more effectively at their own discretion. However, traders who are fairly new to trading due to price movements tend to be less accurate in identifying effective entries. This skill comes with practice, screen time, and experience. However, traders who have mastered it tend to enter trades at just the right time and are able to get most pips out of a single trade.

Trading in price promotions is a very effective time of strategy when used in a trendy market situation. The trend is easy to spot as the market typically has higher highs and lows in a bullish market and lower highs and lows in a declining market. This enables retailers to determine the trend direction very precisely.

Anticipating where the price would go is another story. Using a bare chart, it is quite difficult for most new traders to identify where the pullback would arrive. This is where the Fibonacci ratios come into play. The price tends to withdraw to certain levels of a Fibonacci relationship. There are no clear explanations for why it works, but it does. The price tends to fall back to 38.2 during an extremely strong momentum trend and around 50 and 61.8 during a moderate trend. The Fibonacci Pullback Forex trend following strategy uses this information to anticipate pullbacks and make entry decisions based on price movements in these areas.

Zigzag display

The ZigZag indicator is a very valuable tool that traders could use. This indicator identifies swing heights and swing lows and connects these points with a line that forms a zigzag pattern. In this way, traders can visually see where the swing points are and use this information for their trading strategies.

Traders trading reversals at support and resistance points or supply and demand zones could use the swing points as the basis for a horizontal support or resistance zone or a supply and demand zone.

Price action traders could also use this indicator to identify the trend direction. Markets that are constantly reaching highs and lows are technically a bullish trend market. On the other hand, markets that are constantly reaching lower and lower lows are seen as a declining trend market.

Fibonacci retracement ruler

The Fibonacci retracement ruler is basically a tool that is integrated on every MT4 platform. However, many new retailers overlook this tool because they don't know how to use it.

To use the Fibo ruler, traders attached one end of a ruler to a swing point and connected it to connect the other end to another swing point. The tool then shows the price points at which the conditions of a pullback or retracement are expected.

Trading strategy

This strategy is a simple trend following strategy that deals with pullbacks found using the ZigZag indicator under current market conditions.

To identify a trend market, traders need to monitor whether the swing highs and swing lows as indicated by the ZigZag indicator are either higher highs and lows or lower highs and lows. In this case, the market could be seen as a trend.

The Fibonacci retracement ruler is then connected from one pivot point to the other to identify the price range of the ratios.

This strategy is based on deep retracements that can be found in regularly trendy markets. Therefore, after a retracement in the range between 50 and 76.4, we expect the price to be rejected and reversed. A rectangular box could be placed in this area to mark where we would look for signs of price refusal and reversal.

A trade entry could be considered if a reverse candle pattern occurs in this area. If a price action indicates that the price could reverse, a trade could be completed. If the pivot point is accurate, this is confirmed by an arrow indicated by the zigzag arrow display and soon connected to a line coming from the zigzag display.

The take profit goals are set to the opposite swing point. Although the price should violate these points, we will use these take profit goals as a conservative goal.

Indicators:

  • ZigZagFirst.ex4
  • zigzagarrows.ex4

Time window: 15-minute, 30-minute, 1-hour and 4-hour charts

Currency pairs: Major and minor pairs

Trading session: Meetings in Tokyo, London and New York

Buy trade setup

entry

  • The zigzag indicator should indicate that the market is consistently making higher and higher lows, indicating that the market is in an upward trend.
  • Adjust the Fibonacci retracement ruler along the zigzag line from high swing to low swing.
  • Wait for the price to decrease towards the Fibonacci ratio of 50 and 76.4.
  • Place a buy order as soon as a bullish reverse candlestick pattern is seen in this area.

Stop loss

  • Set the stop loss on the fractal below the entry candle.

Take profit

  • Set the take profit target to swing high based on the ZigZag line.

Fibonacci Pullback Forex Trend by Strategy 1

Fibonacci Pullback Forex Trend by Strategy 2

Sell ​​Trade Setup

entry

  • The zigzag indicator should indicate that the market is consistently making lower highs and lower lows, indicating that the market is in a downward trend.
  • Adjust the Fibonacci retracement ruler along the zigzag line from low to high swing.
  • Wait for the price to decrease towards the Fibonacci ratio of 50 and 76.4.
  • Enter a sell order as soon as a bearish reverse candle pattern is visible in this area.

Stop loss

  • Set the stop loss on the fractal above the entry candle.

Take profit

  • Set the take profit target to swing low based on the ZigZag line.

Fibonacci Pullback Forex Trend by Strategy 3

Fibonacci Pullback Forex Trend by Strategy 4

Conclusion

Price promotions and nude chart traders usually trade this way. However, it requires skill and experience to correctly identify the swing points. This method using the ZigZag indicator enables traders to easily identify swing points and thus effectively trade with retracements.

Some price promoters prefer setting a higher take profit target, as recommended in this strategy. Traders with a higher appetite for risk may choose to do the same. Some would choose to set the take profit target based on the length of the current ZigZag line, while others would use and expand the Fibonacci ratio to set the target. Others would not set a take profit target and would instead use candle patterns to determine the price where they would like to go. Another option would be to take some profit at the swing point and set a different take profit goal based on the above methods.

Channel Waves Forex Trend By Strategy

Another way to trade an established trend is to use indicators with bands or channels. These types of indicators are very useful for most traders, whether trend reversers, medium reversers or momentum traders.

Trend following strategies are no different. Traders who trade trend-following strategies also benefit from these types of indicators. This is because these indicators can also be used to monitor momentum and trend direction and at the same time an average price line is shown on the chart. In this way, traders can easily see in which direction they are trading and where they can observe price drops in order to effectively trade on an existing trend.

The Channel Waves Forex trend following strategy offers trading setups based on the direction of the existing trend and entries based on retracements to the mean.

Donchian canals

The Donchian Channel is a technical indicator developed by Richard Donchian.

This indicator provides information about the average price and overbought or oversold price ranges.

The oversold line is based on the highest highs for a period of n years, while the oversold line is based on the lowest lows for a period of n years. In an extensive market, the price would normally remain in the range of these lines without moving the outer lines too often. However, during a trend market, the price would normally break either higher highs or lower lows. This causes the outer lines to move continuously higher or lower. This property enables retailers to identify trends and impulses based on the outer lines.

The mean or center line is also based on the outer lines. This is basically the average price of the top and bottom lines. It could be used as a moving average. However, unlike a standard moving average line, the centerline of a Donchian channel tends to be more responsive to price movements during a trend market and is more stable in an area with a stable reach.

Fisher indicator

The Fisher indicator is an oscillating technical indicator that shows the trend direction using histogram bars. Positive bars indicate an upward trend, while negative bars indicate a downward trend. Positive bars are also lime-colored, while negative bars are colored green.

Transitions from positive to negative or vice versa could be used as a trend reversal signal. However, this should not be used as a stand-alone signal.

The Fisher indicator tends to react very strongly to price movements. For this reason, the Fisher indicator could show a reversal even with a short row of retracement candles. Therefore, the Fisher indicator works best when short-term trends are traded with the goal of getting in and out of trading early.

Trading strategy

This trading strategy is a trend-following strategy based on price declines at the median Donchian Channel price.

To effectively trade this strategy, the trades need to be adjusted to the general trend. The trend direction is based on a 50-period simple moving average (SMA). The price and centerline of the Donchian Channel should be on the right side of the 50 SMA based on the trend. The 50 SMA should also fall to indicate that the market is trending strongly enough.

The outer lines of the Donchian Channels should also move constantly, indicating that depending on the direction of the trend, either higher highs or lower lows are formed.

The price should then go back to the Donchian Canal center line and temporarily cross it, temporarily reversing the Fisher indicator.

Trades are made as soon as the Fisher indicator shows that the trend has resumed and the price has crossed the Donchian Channel's midline again in the direction of the trend.

Indicators::

  • 50 SMA
  • DonchianChannels.ex4
  • Fisher.ex4

Time window: 1-hour and 4-hour charts

Currency pairs: Major and minor pairs

Trading session: Meetings in Tokyo, London and New York

Buy trade setup

entry

  • The price should be over 50 SMA.
  • The center line of the Donchian Canal (blue) should be over 50 SMA.
  • The 50 SMA should trend up, indicating an upward trend.
  • The price should be below the center line of the Donchian Canal.
  • The Fisher ad should temporarily print negative red bars during the retracement.
  • Place a buy order as soon as the Fisher indicator prints a positive lime bar and the price closes above the center line of the Donchian Canal.

Stop loss

  • Set the stop loss below the bottom line of the Donchian Canal (green).

output

  • Close the trade as soon as the Fisher indicator prints a negative red bar.

Channel Waves Forex Trend by Strategy 1

Channel Waves Forex Trend by Strategy 2

Sell ​​Trade Setup

entry

  • The price should be less than 50 SMA.
  • The center line of the Donchian Canal (blue) should be below 50 SMA.
  • The 50 SMA should fall, indicating a downward trend.
  • The price should be above the center line of the Donchian Canal.
  • The Fisher indicator should temporarily print positive lime bars during the retracement.
  • Place a sell order as soon as the Fisher indicator prints a negative red bar and the price closes below the center line of the Donchian Channel.

Stop loss

  • Set the stop loss above the top line of the Donchian Canal (red).

output

  • Close the trade as soon as the Fisher indicator prints a positive lime bar.

Channel Waves Forex Trend by Strategy 3

Channel Waves Forex Trend by Strategy 4

Conclusion

This trend following strategy is a variation of other trend following strategies based on band or channel indicators. Other variations use the Bollinger bands and trade bounces from an outer band when the price crosses the center line.

The key to this strategy lies in correctly identifying the trend markets and trading in retracements and overloads. It is also best to adjust trading to the higher timeframe trend as this usually leads to better results.

Fantastic Bollinger Forex trend by strategy

Another way to act effectively in an established trend market is to enter the market as the market picks up pace with increasing momentum.

Strong trend markets are typically characterized by cycles of a strong momentum push in the direction of the trend, a temporary sideways or retracement process, another momentum push and a renewed sideways or retracement process. This cycle repeats itself until the trend wears off.

Trading shortly before a strong momentum push is a good way to enter the market in a very trendy market. This is because the dynamics confirm that the trend is still going on. This enables us as traders to assume that there is a high probability that the price will reach a reasonable take profit target. We could also assume that the price would not reverse significantly in the foreseeable future.

The Awesome Bollinger Forex trend following strategy confirms the trend direction based on reliable trend indicators and provides entry signals based on momentum candles that indicate the beginning of a strong momentum push.

Ingenious oscillator

The Awesome Oscillator (AO) is a trend following indicator with which traders can objectively identify the trend direction.

This oscillating display shows histogram bars to indicate the trend direction. The bars are based on the difference between a simple moving average (SMA) with 5 and 34 periods. However, the moving averages used are not based on closing the candle. Instead, this indicator uses the median high and low of a candle as the basis for calculating the SMA.

Positive Histogramme zeigen eine bullische Trendrichtung an, während negative Histogramme eine rückläufige Trendrichtung anzeigen. Die Balken ändern auch ihre Farben, je nachdem, ob der aktuelle Balken eine größere Zahl als der vorherige Balken hat. Balken mit einer größeren Zahl als der vorherige Balken sind grün gefärbt, während Balken mit einer kleineren Figur als der vorherige Balken rot gefärbt sind. Dies würde als Hinweis darauf dienen, ob sich die Kluft zwischen 5 und 34 SMA vergrößert oder verkleinert.

Bollinger Bands

Die Bollinger Bands sind ein weiterer Trend nach dem technischen Indikator, den John Bollinger in den 1980er Jahren entwickelt hat. Dieser Indikator zeigt die Trendrichtung, Volatilität und Dynamik an und bietet den Händlern eine gute Perspektive auf die Marktentwicklung.

Diese Anzeige zeigt drei Linien an – eine Mittellinie und zwei äußere Linien. Die Mittellinie ist im Grunde ein gleitender Durchschnitt, normalerweise ein einfacher gleitender Durchschnitt (SMA). Die äußeren Linien sind Abweichungen von der Mittellinie.

Die drei Komponenten der Bollinger-Bänder könnten genügend Informationen für Händler liefern. Die Mittellinie könnte als normaler gleitender Durchschnitt verwendet werden. Es könnte die Trendrichtung und die Stärke des Trends basierend auf seiner Steigung anzeigen. Die äußeren Linien könnten Informationen über Volatilität, überverkaufte und überkaufte Bedingungen und Dynamik liefern.

Während einer Marktbedingung mit hoher Volatilität, die typischerweise in Marktexpansionsphasen zu finden ist, vergrößern sich die äußeren Linien tendenziell und vergrößern den Abstand zwischen den drei Linien. Andererseits neigen während einer Bedingung mit geringer Volatilität, die typisch für eine Marktkontraktionsphase ist, auch die äußeren Linien dazu, sich zusammenzuziehen.

Ein Preis, der die äußeren Linien berührt, könnte für verschiedene Händler auch unterschiedliche Bedeutungen haben. Mittlere Umkehrhändler würden diese als überkaufte oder überverkaufte Bedingungen identifizieren. Momentum-Händler hingegen würden Preisschließungen über die Grenzen hinaus als Anzeichen für Momentum betrachten. Es hängt alles von den Parametern ab, die zum Einstellen der äußeren Linien und den Eigenschaften der Kerzen verwendet werden, wenn diese die äußeren Linien berühren. Eine Preisverweigerung beim Berühren der äußeren Linien könnte zu einer mittleren Umkehr führen, während starke Impulskerzen, die über die äußeren Linien gehen, den Beginn eines neuen Impulses bedeuten könnten.

Trading strategy

Diese Strategie bestätigt die Trendrichtung basierend auf dem Awesome Oscillator und einem 50-Perioden-Simple Moving Average (SMA).

Die Trendrichtung des Awesome Oscillator hängt davon ab, ob die Balken positiv oder negativ sind. Die Balken sollten für die meisten Teile des Trends auch aus einem beträchtlichen Abstand von der Mittellinie kommen. Wenn der Preis zu schrumpfen beginnt oder sich dem Mittelwert nähert, ist es normal zu beobachten, dass sich die Balken der Mittellinie nähern. Die Balken sollten jedoch nicht zu nahe sein, da dies bedeuten kann, dass der Trend möglicherweise endet.

Der 50 SMA wird als Standard-Trendrichtungsfilter verwendet. Der Trend basiert auf dem Standort des Preises in Bezug auf die 50 SMA. Während der Trendbedingung sollte der Preis die 50 SMA nicht berühren und einen beträchtlichen Abstand von ihr haben. Die Trendrichtung würde auch auf der Steigung des 50 SMA basieren. Ein steiler abfallender 50 SMA wäre gut, da dies auf einen starken Trend hinweist.

Die Bollinger-Bänder werden verwendet, um Kontraktionen und Impulse zu identifizieren. Diese Strategie verwendet zwei Bollinger-Band-Sets. Eine hat eine Standardabweichung von 0,5 und eine andere eine Standardabweichung von 1. Dies würde es uns ermöglichen, leichter zu visualisieren, ob der Markt schrumpft oder expandiert und ob der Preis auf der Grundlage der Bollinger-Bänder in Richtung des Mittelwerts zurückgegangen ist. Während einer Expansionsphase eines stark tendierenden Marktes würde der Preis typischerweise über oder nahe den äußeren Bändern bleiben. Wenn der Markt zu schrumpfen beginnt, tritt der Preis normalerweise in die Mittellinien der Bollinger-Bänder ein und berührt manchmal sogar das gegenüberliegende äußere Band und lehnt es ab. Wenn sich der Trend fortsetzt und eine Momentumkerze erscheint, schließt der Preis normalerweise außerhalb des äußeren Bandes in Richtung des Trends. Dies bedeutet den wahrscheinlichen Beginn eines neuen Impulsschubs in Richtung des Trends.

Indicators:

  • Bollinger Bands
    • Zeitraum: 20
    • Abweichungen: 0,5
  • Bollinger Bands
    • Zeitraum: 20
    • Abweichungen: 0,5
  • 50 SMA
  • Awesome.ex4 (Standardeinstellungen)

Zeitfenster: 15-Minuten-, 30-Minuten-, 1-Stunden- und 4-Stunden-Charts

Currency pairs: Haupt- und Nebenpaare

Trading session: Sitzungen in Tokio, London und New York

Buy trade setup

entry

  • Price should be above the 50 SMA.
  • The Bollinger Bands should be above the 50 SMA.
  • The 50 SMA should be sloping up indicating a bullish trend.
  • The bars on the Awesome Oscillator should be positive indicating a bullish trend.
  • As price pulls back, price should be closing inside the Bollinger Band lines.
  • The Bollinger Bands should also start to contract.
  • The Awesome Oscillator should stay positive despite the pull back.
  • Enter a buy order as soon as a momentum candle closes above the top outer line of the Bollinger Bands.

Stop loss

  • Set the stop loss at the fractal below the entry candle.

Take profit

  • Set the take profit target at 2x the risk on the stop loss.

Awesome Bollinger Forex Trend Following Strategy 1

Awesome Bollinger Forex Trend Following Strategy 2

Sell ​​Trade Setup

entry

  • Price should be below the 50 SMA.
  • The Bollinger Bands should be below the 50 SMA.
  • The 50 SMA should be sloping down indicating a bearish trend.
  • The bars on the Awesome Oscillator should be negative indicating a bearish trend.
  • As price pulls back, price should be closing inside the Bollinger Band lines.
  • The Bollinger Bands should also start to contract.
  • The Awesome Oscillator should stay negative despite the pull back.
  • Enter a sell order as soon as a momentum candle closes below the bottom outer line of the Bollinger Bands.

Stop loss

  • Set the stop loss at the fractal above the entry candle.

Take profit

  • Set the take profit target at 2x the risk on the stop loss.

Awesome Bollinger Forex Trend Following Strategy 3

Awesome Bollinger Forex Trend Following Strategy 4

Conclusion

This strategy works very well on an established trend that is trending strongly. It is based on momentum pushes that are gauged using the Bollinger Bands.

The key to successfully using this strategy is by applying it on a strong trending market. This is characterized by a steep sloping moving average.

It is also important to note that momentum tends to fizzle out as the trend is prolonged. Trends could have multiple pullbacks, however trading on later pullbacks tend to have lower probability.

last words

These trading strategies are tools that you could use to profit from the market. It helps you identify trading opportunities which you would have otherwise overlooked. However, none of these are Holy Grails of trading. In fact, there is no Holy Grail in trading. Trading is about probabilities and observations of market behaviors.

The key to trading is in correctly identifying the market’s behavior for the moment. As soon as you could identify these behaviors, then you could apply the correct strategy.

Forex Strategies Download

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<h3><span id=Forex Strategies Installation Guide

    • Download the Zip File
    • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
    • Copy tpl file (Template) to your Metatrader Directory / templates /
    • Start or restart your Metatrader Client
    • Select Chart and Timeframe where you want to test your forex system
    • Right click on your trading chart and hover on “Template”
    • You will see Setup is available on your Chart

Click here below to download:

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