Momentum is the name of the game. Although there are many other types of strategies in forex trading, one of the most effective ways to trade the market is through momentum trading. This is because trading is about having an educated guess where price could move to in the future. One of the telltale signs that price is about to move in a certain direction is through momentum.
Often, as price moves strongly in one direction, tilting the momentum, the market tends to follow. It is almost like a generally accepted signal that traders look out for.
Since many traders are looking for momentum signals, the trend that happens after the momentum signal becomes a self-fulfilling prophecy. As soon as traders see a bullish momentum signal, traders buy starting bullish trend. On the flip side, if they see a bearish momentum signal, then they would start selling, starting a bearish trend.
Trend Trigger Mod Forex Trading Strategy is a strategy that banks on momentum. It detects trend direction by using multiple indicators and generates signals that are confirmed to have a strong momentum using the Trend Trigger Mod indicator.
Trend Trigger Mod
Trend Trigger Mod is an oscillating technical indicator which indicates momentum based on recent price movements.
Trend Trigger Mod is an oscillator based on the Trend Trigger indicator. Since the Trend Trigger indicator is a moving average type of indicator, its characteristics also carry on with the Trend Trigger Mod indicator.
This indicator is a smoothened type of oscillator. It displays a line that oscillates around zero. A positive line indicates a bullish trend bias while a negative line indicates a bearish trend bias.
It also has a marker at around +/- 60. A Trend Trigger Mod line that breaches these levels could indicate a strong momentum.
Guppy Multiple Moving Average Long
Table of Contents
Guppy Multiple Moving Average (GMMA) is a technical indicator that identifies trends by using a set of moving averages that are stacked together.
The classic GMMA indicator has two sets of six moving averages, for a total of 12 moving average lines. The sets are classified as short-term moving averages and long-term moving averages. Trade signals are often generated whenever the moving averages crossover each other and whenever the two sets are in confluence.
GMMA Long forgoes the short-term moving average set and uses only the long-term moving average set. This allows traders to focus on long-term trade signals.
Parabolic Close Indicator
Parabolic Close indicator is a trend following and momentum indicator which is an enhanced version of the Parabolic Stop and Reverse indicator (PSAR).
This indicator detects price changes and indicates the trend direction by plotting a line on the price chart. Trend direction is interpreted based on where the Parabolic Close line is in relation to price.
A Parabolic Close line that is formed below the price candles indicate a bullish trend. On the other hand, the Parabolic Close line shifts above price during a bearish trend.
This trading strategy provides trade signals based on confluences between the Trend Trigger Mod, Guppy Multiple Moving Average (GMMA) Long, and Parabolic Close indicator. These indicators are complementary trend and momentum indicators. Confluences between these three indicators tend to result in a trend.
The Parabolic Close indicator serves as an initial indication of a trend reversal. Parabolic Close signals are generated whenever the Parabolic Close line shifts above or below price.
The Guppy Multiple Moving Average (GMMA) Long indicator serves as the secondary trend indicator. Trend signals are generated whenever the fastest moving average line (gold) intersects the slowest moving average line (green) and the GMMA Long lines start to fan out.
Finally, the Trend Trigger Mod indicator serves as a confirmation of momentum. To identify momentum, the Trend Trigger Mod line should breach the dotted blue or red lines. In a bullish trend, the Trend Trigger Mod line should cross above the dotted blue line. In a bearish trend, the Trend Trigger Mod line should cross below the dotted red line.
- Parabolic-close (default settings)
- GMMA_Long (default settings)
- TrendTriggerMod (default settings)
Preferred Time Frames: 15-minute, 30-minute, 1-hour and 4-hour charts
Currency Pairs: major and minor pairs
Trading Session: Tokyo, London and New York sessions
Buy Trade Setup
- Price should cross above the GMMA Long lines.
- The Parabolic Close line (red) should be shifted below price.
- The gold GMMA Long line should cross above the green line.
- The Trend Trigger Mod line should breach above the dotted blue line.
- Price Action should exhibit bullish momentum.
- Enter a buy order on the confirmation of the conditions above.
- Set the stop loss on the fractal below the entry candle.
- Close the trade as soon as the Parabolic Close line is shifted above price.
Sell Trade Setup
- Price should cross below the GMMA Long lines.
- The Parabolic Close line (red) should be shifted above price.
- The gold GMMA Long line should cross below the green line.
- The Trend Trigger Mod line should breach below the dotted red line.
- Price Action should exhibit bearish momentum.
- Enter a sell order on the confirmation of the conditions above.
- Set the stop loss on the fractal above the entry candle.
- Close the trade as soon as the Parabolic Close line is shifted below price.
This trading strategy could work well for momentum traders who are adept at trade management.
Because of the confluence of trend and momentum, there will always be a high probability that price would go in the direction of the trend.
However, there are instances when price would reverse after a trending or momentum move. In order to protect profits, traders should move the stop loss to breakeven whenever possible. Then, the stop loss should be trailed as soon as price starts to trend. If price shows signs of reversing such as the shifting of the Parabolic Close line, then the trade should be manually closed.
Forex Trading Strategies Installation Instructions
Trend Trigger Mod 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 Trigger Mod 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 Trend Trigger Mod Forex Trading Strategy?
- Download Trend Trigger Mod 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 Trigger Mod Forex Trading Strategy
- You will see Trend Trigger Mod 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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