Traders make money by picking the right direction at the right time. Those who have mastered the art of getting these two things right stand to make a lot of money in the forex market. However, getting these two things right might be harder than it looks.
First, getting the trade direction right. Trade direction only has two options – up or down, buy or sell. Picking trade direction should give traders a 50-50 chance because there are only two options. Traders who have developed a method in picking trade direction could significantly increase their chances. Traders who pick trade directions methodically based on technical analysis could pick the right trade direction at around 60% of the time or better.
The second aspect, timing the market, is where things could get a bit difficult. Timing the market means picking the right candle to enter the trade out of an infinite number of options. This means if there are a hundred different options, blindly picking a candle would give you a 1% chance. That is too low if you are looking to make money out of the forex market.
The good thing is there are ways to narrow down your entry window depending on your trading strategy. Entries could be among a narrow window of 5 to 10 candles. That significantly improves your chances. There are also strategies that could pinpoint the exact entry candle for you.
Trend Forecaster Forex Trading Strategy is a strategy that helps traders identify the right entry candle. It uses two custom technical indicators that filters trades based on trend direction and points the right candle to enter the trade.
Table of Contents
Forex Forecaster is a custom oscillating indicator that indicates trend direction.
This indicator is displayed using two lines that oscillate freely from positive to negative and vice versa. The slower moving line is drawn as a dashed line while the faster moving line is drawn as a solid line. Having the faster line crossing above the slower line could indicate a bullish trend direction, while having the faster line falling below the slower line could indicate a bearish trend. The solid line changes color based on the direction of the trend. A green line indicates a bullish trend while a red line indicates a bearish trend.
Lines crossing above zero also indicate a bullish trend while lines crossing below zero also indicate a bearish trend.
Forex MT4 Trend Indicator
The Forex MT4 Trend Indicator is a trend-following indicator that indicates trend direction and provides trade entry signals based on the trend.
This indicator indicates trend direction by displaying bars on the price chart, which is based on the Exponential Moving Average (EMA). The bars changes color whenever it detects a change in trend direction. Blue bars indicate a bullish trend, while red bars indicate a bearish trend. The bars also become longer whenever the trend is becoming stronger, and smaller whenever the trend is becoming weaker.
Aside from the bars, this indicator also provides trade entry signals by placing arrows on the price chart whenever it detects a trend change. Blue arrows pointing up indicate a bullish trend, while red arrows pointing down indicate a bearish trend. The arrows appear on the second bar that displays the same color. In a way, this indicator provides trade signals on a confirmed trend reversal by waiting for the second bar to confirm the trend change.
This trading strategy trades on confluences between the Forex Forecaster indicator and the Forex MT4 Trend Indicator.
The Forex Forecaster indicator would serve as the initial trend reversal indication. Trend direction will be based on how the solid and dashed lines overlap, as well as the color of the solid lines. We should also observe where the solid and dashed lines are on the oscillator. It should show signs that it is about to cross from negative to positive or vice versa, indicating that price is about to reverse.
The Forex MT4 Trend Indicator would serve as our actual entry and exit signals. Entry signals will be based on the arrows that are printed by the indicator. Trade exits on the other hand should be based on the changing of the color of the bars. This would provide us a confirmed trade entry and an early exit signal.
- forex-mt4-trend-indicator (default setting)
- ForexForecaster (default setting)
Preferred Time Frames: 30-minute, 1-hour, 4-hour and daily charts
Currency Pairs: major and minor pairs
Trading Session: Tokyo, London and New York sessions
Buy Trade Setup
- On the Forex Forecaster indicator, the solid line should be above the dashed line.
- The solid line should be color green.
- The solid line should be sloping up indicating that it would cross above zero.
- The Forex MT4 Trend Indicator should be printing blue bars.
- A blue arrow pointing up should be printed below price.
- Enter a buy order on the confirmation of the conditions above.
- Set the stop loss a few pips below the Forex MT4 Trend Indicator bars.
- Close the trade as soon as the Forex MT4 Trend Indicator bars change to red.
Sell Trade Setup
- On the Forex Forecaster indicator, the solid line should be below the dashed line.
- The solid line should be color red.
- The solid line should be sloping down indicating that it would cross below zero.
- The Forex MT4 Trend Indicator should be printing red bars.
- A red arrow pointing down should be printed below price.
- Enter a sell order on the confirmation of the conditions above.
- Set the stop loss a few pips above the Forex MT4 Trend Indicator bars.
- Close the trade as soon as the Forex MT4 Trend Indicator bars change to blue.
This trading strategy works well as a trend following trading strategy. As such, traders should pick markets which are prime for a trending market move. This could be a clear trend on the higher timeframes, a sudden momentum move from a contraction phase, a breakout from a support or a resistance, or some other factors that could support a new trend.
Since this is a strategy that aims to trade on trends, trades that turn out to be new trends give traders most of their profits. However, there are trades that would not pan out to become a trend. Traders should move stop losses to breakeven whenever possible and trail stop losses in order to protect profits.
Traders who could pick the right trades and manage trades correctly would benefit the most from this type of strategy.
Forex Trading Strategies Installation Instructions
Trend Forecaster 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.
Trend Forecaster 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.
Recommended Forex MetaTrader 4 Trading Platform
- Free $50 To Start Trading Instantly! (Withdrawable Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
How to install Trend Forecaster Forex Trading Strategy?
- Download Trend Forecaster 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 Trend Forecaster Forex Trading Strategy
- You will see Trend Forecaster 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: