Trend reversal trading strategies are probably one of the most profitable trade setups if you catch one. Imagine being able to enter a trade just as the trend reverses and riding that trend until the end. These types of trade setups could give you the most band for your buck. You would be risking little with an opportunity to earn so much.
Although, trend reversal strategies seem to be very profitable setups, the question is how do you catch one? There are many different ways to enter a trend reversal trade setup. Crossover strategies are very popular trend reversal setups. Price action traders also make use of trend line breakouts and price patterns. Then, there are the indicator-based trend reversal strategies. Any of these types of strategies could work. The key is in finding the right tools for the job. For crossovers, it is about using the right moving average setups. For price action setups, it is about being familiar with high probability price patterns. For technical indicator-based trend reversal setups, it is about using the right indicator or set of indicators.
Half Trend Indicator
Table of Contents
- 1 Half Trend Indicator
- 2 Buy Sell Secret Indicator
- 3 Trading Strategy Concept
- 4 Conclusion
The Half Trend custom indicator is quite a popular trading indicator. It is an indicator based on the direction of a modified simple moving average, with special consideration on breaching the recent highs or lows.
Signals based on the Half Trend custom indicator are quite easy to interpret. Entry signals are based on the changing of the color of the Half Trend line. With this particular Half Trend indicator, buy signals are generated whenever the Half Trend line changes to dodger blue and sell signals when it changes to red.
With the right parameters, the Half Trend custom indicator seems to work well in determining established trends, while managing to be less lagging as compared to other trading indicators.
Buy Sell Secret Indicator
The Buy Sell Secret Indicator is a custom indicator which is plotted as a histogram. Although the developer of this custom indicator has not divulged clearly the mathematical formula used as a basis for the indicator, just by visually assessing the Buy Sell Secret indicator you would notice how accurate it is in determining mid-term trends. It also prints arrows that indicate when a trend is changing direction. These arrows are printed both on the chart and on the indicator window.
Trading Strategy Concept
This strategy is a trend reversal trading strategy based on technical indicators.
The first filter to be considered would be the Buy Sell Secret indicator’s line color. Bullish markets should cause the Buy Sell Secret indicator to change to blue. On the other hand, bearish markets should cause the Buy Sell Secret indicator to change to yellow. This represents the changing of the slope of the Buy Sell Secret indicator’s line. Trade direction should be taken based on this filter.
If the Buy Sell Secret indicator line filter has changed, we then wait for the Half Trend indicator to agree with it. If the trend reversal does continue, the Half Trend indicator line should also change color. It is also accompanied by an arrow pointing the direction of the entry signal. These will be the actual entry signals that we should take.
Lastly, the exit will be based on the arrows printed by the Buy Sell Secret indicator. These are larger arrows printed on the price chart accompanied with arrows printed on the Buy Sell Secret indicator window. We exit the trade whenever an arrow opposing our trade direction is printed.
- Amplitude: 12
- Signal Period: 60
- Dee Period: 76
- Filter Number: 3.0
Timeframe: 15-min, 30-min, 1-hour, 4-hour and daily charts
Currency Pair: any major and minor pair plus some crosses
Trading Session: any
Buy (Long) Trade Setup
- The Buy Sell Secret indicator line should change to color blue indicating a probable bullish trend
- The Half Trend indicator should change to dodger blue accompanied by an arrow pointing up
- Enter a buy order on the confluence of the above conditions
- Set the stop loss below the Half Trend indicator
- Close the trade as soon as red arrows pointing down appears on the price chart and the Buy Sell Secret indicator window
Sell (Short) Trade Setup
- The Buy Sell Secret indicator line should change to color yellow indicating a probable bearish trend
- The Half Trend indicator should change to red accompanied by an arrow pointing down
- Enter a sell order on the confluence of the above conditions
- Set the stop loss above the Half Trend indicator
- Close the trade as soon as blue arrows pointing up appears on the price chart and the Buy Sell Secret indicator window
The Half Trend indicator is an excellent indicator to use as a focal point for a strategy. It changes direction only when the trend reversal is established. For this reason, it usually results to a high probability trade setup based on direction alone. Although it is not perfect, it does yield a very high win rate with a relatively high reward-risk ratio.
Forex Trading Strategies Installation Instructions
Half Trend Reversal 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.
Half Trend Reversal 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 Half Trend Reversal Forex Trading Strategy?
- Download Half Trend Reversal 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 Half Trend Reversal Forex Trading Strategy
- You will see Half Trend Reversal 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.
Click here below to download: