Max Pips Arrows Forex Trading Strategy

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Max Pips Arrows Forex Trading Strategy

Entry setups are just a part of a bigger picture trading strategy and this is rightfully so. Traders should get their entry points right making their entry price as optimal as possible. This would allow traders to get in a trade at a price which would allow them to profit the most. Even if traders get trade direction right, if they get the entry point wrong, chances are they would still be losing money in an otherwise profitable setup.

There are several types of entry strategies that traders could use in conjunction with a bigger picture trade strategy. Traders often use crossovers, retracements or momentum to enter a trade. Crossovers usually pertain to a crossover of moving averages, but it could also mean crossovers of other indicator signals such as oscillators. These are often used in a trend reversal type of strategy. Retracements on the other hand pertain to the slight reversal of price towards the mean or a moving average line. This is often used in a trend following type of strategy and is used to enter trades at an optimal point. Then, there are the momentum entry setups. These pertains to entries based on a strong momentum candle. It is often used in conjunction with a breakout strategy.

Max Pips Arrows Forex Trading Strategy is a strategy that uses a classic momentum entry setup. One of the best implementations of a momentum entry setup is using it as a signal of a start of an expansion phase coming from a market contraction. In the right trade setup, it often leads to price being pushed in a profitable territory right from the start of a trade and could sometimes lead to huge profits if the momentum signal turns out to be a start of a trend.

Winmaxpips Indicator

Winmaxpips is a custom technical indicator used to identify trend direction.

It is an oscillator composed of histogram bars that are formed from a midpoint at 0. It could oscillate to be positive or negative depending on the direction of the trend. Positive bars indicate a bullish trend while negative bars indicate a bearish trend.

The Winmaxpips excels in identifying the mid-term trend. It responds quick enough to detect a reversal yet is also very stable and does not produce too much false signals.

The Winmaxpips indicator could be used as an entry signal based on the crossing over of the bars from negative to positive or vice versa. This could be a good mid-term trend reversal signal.

Another way to use it is as a trend direction filter. This would allow traders to avoid trades that are taken against the trade.

Arrows and Curves

Arrows and Curves is another custom indicator which provides trade entry signals based on momentum.

It is a band-based indicator that draws two lines enveloping price action. In a regular ranging or slow momentum market, price would typically range within the bands. However, as the market gains momentum, price would poke on the upper or lower lines. If the market has strong momentum, price would usually close outside of the channel. This would trigger the indicator to produce a momentum-based entry signal. The indicator would then plot arrows pointing the direction of the momentum shift.

Trading Strategy

This trading strategy is a classic momentum strategy based on a candle closing outside of a band indicator. The advantage of using this strategy is that it aligns the momentum breakout with the general trend direction.

First, trades are filtered based on the trend direction. To do this, we will be using the Winmaxpips indicator. The Winmaxpips indicator would be plotting positive histograms if the market is trending up, and negative histograms if the market is trending down.

Trend direction should also be observed visually based on price action. A bullish trending market would have price action constantly making new highs, while a bearish trending market would have price action constantly making new lows.

As soon as we identify trend direction, we should then wait for entry signals coming from the Arrows and Curves indicator pointing the direction of the trend.

Indicators:

  • ArrowsAndCurves (default setting)
  • Winmaxpips (default setting)

Preferred Time Frames: 1-hour and 4-hour charts

Currency Pairs: major and minor pairs

Trading Sessions: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • The Winmaxpips indicator should be printing positive histograms.
  • Price action should be consistently making higher swing highs and swing lows.
  • Enter a buy order as soon as the Arrows and Curves indicator prints an arrow pointing up.

Stop Loss

  • Set the stop loss a few pips below the lower line of the Arrows and Curves indicator.

Exit

  • Close the trade as soon as the Arrows and Curves indicator prints and arrow pointing down.

Max Pips Arrows Forex Trading Strategy

Max Pips Arrows Forex Trading Strategy 2

Sell Trade Setup

Entry

  • The Winmaxpips indicator should be printing negative histograms.
  • Price action should be consistently making lower swing highs and swing lows.
  • Enter a sell order as soon as the Arrows and Curves indicator prints an arrow pointing down.

Stop Loss

  • Set the stop loss a few pips above the upper line of the Arrows and Curves indicator.

Exit

  • Close the trade as soon as the Arrows and Curves indicator prints and arrow pointing up.

Max Pips Arrows Forex Trading Strategy 3

Max Pips Arrows Forex Trading Strategy 4

Conclusion

Momentum trading strategies using signals coming from breakouts of an envelope or band indicator usually works well with the right parameters. However, many traders still fail to trade these types of strategies successfully because often, traders disregard the general trade direction.

Often, when a momentum candle is produced in a direction going against the trend, price would have several hurdles to break to continue. This often causes price to bounce back causing traders to lose. Trading with the trend allows traders to take momentum signals in a direction that has less resistance.

This strategy works well when used in a market that is generally trending but is in a temporary retracement or contraction phase. Use this strategy in such situations and you would see profits in many of your trades.


Forex Trading Strategies Installation Instructions

Max Pips Arrows Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

Max Pips Arrows Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly.

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Click Here for Step By Step RoboForex Trading Account Opening Guide

How to install Max Pips Arrows Forex Trading Strategy?

  • Download Max Pips Arrows Forex Trading Strategy.zip
  • *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 strategy
  • Right click on your trading chart and hover on “Template”
  • Move right to select Max Pips Arrows Forex Trading Strategy
  • You will see Max Pips Arrows Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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