Often times, the market seems difficult to decipher. It is often hard to predict which way the market is heading. However, if you’d come to think of it, the market moves only in two directions, up or down. And often times, the market tends to have a trend which shows us which way the market is more likely to go. It is not perfect but the probability of having the trade direction right would be higher if we trade with the flow of the market. The question is how do we get the trend direction right?
The Yang Trader Main Indicator
Table of Contents
- 1 The Yang Trader Main Indicator
- 2 The William 36 Histogram Waller Test Indicator
- 3 Trading Strategy Concept
- 4 Conclusion
The Yang Trader Main custom indicator is one of the indicators that could point which direction the market is generally heading. The indicator itself is based on a modified moving average. It draws a single line on the chart which would slope up and down as the market changes direction. However, this indicator has another feature that points the direction of the trend even before the market actually changes trend direction. It does this by printing arrows pointing which direction the market is heading. The arrows are printed a bit earlier than the actual reversal of the moving average. This also usually occurs when there is a momentum candle going the opposite direction or if several candles have been pushing price to reverse. These arrows serve as an early warning letting us know that the market might reverse trend.
The William 36 Histogram Waller Test Indicator
The William 36 Histogram Waller Test custom indicator is an oscillating indicator that also identifies trend direction. It is a bounded oscillating indicator that allows the histograms to be printed from -50 to +50. This indicator also has a marker on +/- 15 mark which allows traders to determine if the trend has actually started or if a candle has enough momentum to change the trend direction.
Trading Strategy Concept
This strategy aims to use the Yang Trader Main indicator as an early warning device, pointing which direction we should start looking for a trade. As soon as an arrow appears, we would get ready for a trade if the trend actually changes. This should be accompanied by price staying at the correct side of the modified moving average line and the moving average hooking towards the direction of the trend. If an arrow pointing up appears on the chart, that is a sign that the market might start to get bullish. Then, price should be staying above the modified moving average line and the moving average line should start sloping up. If on the other hand, an arrow pointing would appear, the reverse should also happen. Price should stay below the modified moving average line and the moving average line should slope down.
The change in trend should be confirmed by the William 36 Histogram Waller Test indicator. As price reverses, the histogram bars would start crossing over the midline. However, this doesn’t confirm the momentum of the change in trend. To confirm the change in trend, we would have to wait for the histogram bars to cross over the +/- 15 mark. If the trend is bullish, the histogram bar should cross above + 15, If the market is bearish, the histogram should cross below – 15. This would serve as our entry signal.
The stop loss would be placed either on the high or low of the entry candle. This would be a tight stop loss but since we are trading momentum setups, having an aggressive stop loss would be good. The take profit target would also be a conservative 1.5x the risk on the stop loss. This allows the trade to have a higher probability even with a tight stop loss.
- YangTraderMain (default settings)
- William36WallerTest (default settings)
Timeframe: 5-min, 15-min, 30-min, 1-hour, 4-hour and daily charts
Currency Pair: any major and minor pair plus some crosses that have enough volatility
Trading Session: any trading session if on the higher timeframe; lower timeframes should be on sessions with volume
Buy (Long) Trade Setup
- The YangTraderMain indicator should print an arrow pointing up
- The modified moving average line should start bending up
- Price should stay above the modified moving average line
- The William36WallerTest indicator should start printing positive histogram bars
- Enter a buy order as soon as a histogram bar crosses above +15
- Set the stop loss a few pips below the low of the entry candle
- Set the take profit target at 1.5x the risk on the stop loss
Sell (Short) Trade Setup
- The YangTraderMain indicator should print an arrow pointing down
- The modified moving average line should start bending down
- Price should stay below the modified moving average line
- The William36WallerTest indicator should start printing negative histogram bars
- Enter a sell order as soon as a histogram bar crosses below -15
- Set the stop loss a few pips above the high of the entry candle
- Set the take profit target at 1.5x the risk on the stop loss
This strategy is a momentum based strategy that makes use of the YangTraderMain indicator as the trend direction filter and the William36WallerTest indicator as the basis for the momentum entry. This strategy is not perfect, there will be some losing trades due to the tight stop loss. However, because of the fixed 1.5x reward-risk ratio, the strategy should allow for a positive outlook in the long run.
The key to this strategy is in catching the right trend with a strong momentum behind it.
Forex Trading Strategies Installation Instructions
Yang Trader 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.
Yang Trader 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 Yang Trader Forex Trading Strategy?
- Download Yang Trader 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 Yang Trader Forex Trading Strategy
- You will see Yang Trader 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: