Why is it that some trades tend to work better than others? Why is it that some traders profit more often than other traders? There could be many reasons why some traders do better than others, but probably one of the biggest reasons is that some trade setups have confluences while others do not. Also, some traders trade only when there are confluences while others trade carelessly.
Confluence is simply the combination of different ideas and factors to support a trade setup or a trade plan. Technical analysts often look into confluences of different ideas that would support a buy or a sell trade. Complementary indicators could produce confluences that could result in a high probability setup.
Some traders create a trade plan with confluences for different trades. Others would setup a trade strategy that is based on confluences and take trades only when such conditions occur. While looking for different confluences for each trade could work, trading strategies that are based on confluences would create consistency. This allows traders to have an idea what are the probabilities that a trade would result in a win or a loss based on historical data.
Oracle Move Momentum Forex Trading Strategy is a strategy that trades on confluences based on multiple high-quality trend following indicators. Although trade setups tend to be fewer due to the filters, trades tend to produce profits more often due to the confluence of factors pointing the same trade direction.
Flat Trend RSI
Table of Contents
- 1 Flat Trend RSI
- 2 Oracle Move (100 Pips Momentum)
- 3 TSR Big Trend (Slope Direction Line)
- 4 Trading Strategy
- 5 Conclusion
Flat Trend RSI is a trend filter indicator based on the Relative Strength Index (RSI).
The classic RSI is an oscillating indicator developed by J. Welles Wilder. This oscillator identifies momentum, trend, and oversold or overbought market conditions based on historical price movements.
The RSI line oscillates between 0 to 100. An RSI line that is above 55 is generally indicative of an uptrend, while an RSI line that is below 45 is indicative of a downtrend. On the other hand, an RSI line that is above 70 indicates an overbought market condition, while an RSI line that is below 30 indicates an oversold market condition.
This RSI filter, however, interprets an RSI line that has breached above 70 as an indication of a bullish momentum and an RSI line that has fallen below 30 as an indication of a bearish momentum. It then displays its readings as bars. Deep sky-blue bars indicate a bullish momentum while red bars indicate a bearish momentum.
Oracle Move (100 Pips Momentum)
100 Pips Momentum or Oracle Move indicator is a trend following and momentum indicator which is based on the crossing over of two moving averages.
The moving averages used in this indicator are two short- to mid-term moving averages that are relatively smooth. The faster moving average is colored blue while the slower moving average is colored red. A crossover of the blue line above the red line indicates a bullish trend reversal, while a crossover below the red line indicates a bearish trend reversal.
TSR Big Trend (Slope Direction Line)
TSI Big Trend indicator is a Slope Direction Line indicator.
This indicator is a trend following indicator based on a moving average. The moving average line is a smooth moving average making it less susceptible to price spikes.
The line also changes color depending on the direction of its slope. If the line is sloping up, it is colored light blue indicating an uptrend. If the line is sloping down, it is colored tomato indicating a downtrend.
This strategy trades on confluences based on the three indicators mentioned above.
The RSI Filter indicator is our main trend and momentum filter. Trades are taken in the direction indicated by the RSI Filter indicator based on the color of the bars.
Then, Slope Direction Line would act as our next trend direction filter. Trades are taken based on the slope of the moving average line. Also, trades are taken based on the crossing over of the Oracle Move indicator lines and the Slope Direction Line.
Lastly, the Oracle Move indicator would be our short- to mid-term trend indicator. Trade signals are generated whenever the blue and red lines crossover, and when both lines crossover the Slope Direction Line.
- Flat Trend RSI (default setting)
- 100pips Momentum(default setting)
- (T_S_R)-Big Trend (default setting)
Preferred Time Frames: 1-hour and 4-hour charts
Currency Pairs: major and minor pairs
Trading Session: Tokyo, London and New York session
Buy Trade Setup
- The RSI Filter should be printing deep sky-blue bars.
- The Slope Direction Line should be color light blue.
- The blue line of the Oracle Move indicator should cross above the red line.
- Both lines of the Oracle Move indicator should cross above the Slope Direction Line.
- Enter a buy order on the confirmation of the conditions above.
- Set the stop loss below the Slope Direction Line.
- Close the trade as soon as the blue line of the Oracle Move indicator crosses below the red line.
- Close the trade as soon as the Oracle Move lines cross below the Slope Direction Line.
Sell Trade Setup
- The RSI Filter should be printing red bars.
- The Slope Direction Line should be color tomato.
- The blue line of the Oracle Move indicator should cross below the red line.
- Both lines of the Oracle Move indicator should cross below the Slope Direction Line.
- Enter a sell order on the confirmation of the conditions above.
- Set the stop loss above the Slope Direction Line.
- Close the trade as soon as the blue line of the Oracle Move indicator crosses above the red line.
- Close the trade as soon as the Oracle Move lines cross above the Slope Direction Line.
Trend following strategies that incorporate momentum is one of the most effective ways to trade the market. This is because confluences between a trend following strategy and a momentum strategy go hand in hand. Trend following strategies on short-term trends and momentum on the bigger picture usually equates to a winning trade.
This strategy is such kind of strategy that trades on confluences between momentum and a trend following strategy. This allows the strategy to produce high yielding trades with a relatively higher win rate compared to other trend following strategies.
Forex Trading Strategies Installation Instructions
Oracle Move Momentum 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.
Oracle Move Momentum 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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How to install Oracle Move Momentum Forex Trading Strategy?
- Download Oracle Move Momentum 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 Oracle Move Momentum Forex Trading Strategy
- You will see Oracle Move Momentum 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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