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Forex Strategy Master-High probability low risk profit system-

Forex Strategy Master is a trend following strategy The purpose of Forex Strategy Master is a system that identifies high probability lo...

Forex Strategy Master is a trend following strategy
The purpose of Forex Strategy Master is a system that identifies high probability low risk profitable trades. We will be using the custom indicator, Support and Resistance, along with exponential moving averages and the MACD to look for trades.
Time frame 5 min or higher.
Currency pairs: major and minor (from 15 min time frame).
This strategy works good in trendin market.
Metatrader 4 Indicators:
1. SuppRTF;
2. Exponential Moving Averages;
a. 15 EMA applied to High;
b. 15 EMA applied to Low;
c. 200 EMA applied to Close;
3. MACD (12, 26, 9 applied to Close).
Forex Strategy Master
SuppRTF (Support & Resistance Timeframe)
This indicator are the blue and red dots that form a line along swing highs and swing lows. It works like fractals but better because it’s easier to tell if price exceeds the swing levels, which is an important condition for finding trades. Here, a swing high is formed if a candle is preceded by 3 candles with lower highs and followed by another 3 candles with lower. The opposite goes for a swing low. Blue dots mark the swing highs while red dots mark the swing lows.
Forex Strategy Master
The levels indicated by the SuppRTF indicator can be considered as minor support and resistance levels of the particular timeframe they are found.
On the image above, the blue dots along the swing high represent the resistance level while the red dots along the swing low represent the support level. If price exceeds them, it means price will most likely continue to move in that direction.
Exponential Moving Average
15 EMA applied to the high (Dodger Blue)
15 EMA applied to the low (Magenta)
200 EMA (White)
These moving averages will help us identify when and where we will enter our trades. I’ve added the moving averages over our first indicator below.
Forex Strategy Master
 The 15 EMAs will be used to identify the following:
1. Direction of the short term trend.
2. Point of entry.
3. Stop loss and Trailing stop levels.
The magenta and dodger blue 15 EMA lines form a channel, which helps us identify whether price is in an uptrend, downtrend, or ranging.
Price is in an uptrend if it is above the dodger blue line, and it is in a downtrend if it’s found below the magenta line. However, if price is suspended within the channel, we are in a range-bound market. As we already know, we only buy in an uptrend, sell in a downtrend, and enter no trades in a range-bound market. However, because the 15 EMAs are short term moving averages, they are limited in their ability to identify the general trend and can give out false signals if we do not consider the bigger picture. This is where the 200 EMA comes into play. If our channel forms above the 200 EMA, then we need to be looking for buy trades only.
Forex Strategy Master
If it’s under the 200 EMA, then we look to place sell trades only.
Forex Strategy Master
 Remember, we want to get the highest probability of winning trades while risking very little. That can only be possible if we enter in the right direction at the right time. Let the big guys start to move the market before we enter our trade, enjoy the ride and bail out before the market runs out of steam. I’ll show you more about this as we go along.
Moving Average Convergence Divergence (MACD)
The MACD will also help us confirm the trend of the market. This is based on the convergence or divergence of moving averages set in its parameters. I like this indicator because of its ability to signal the early onset of a change in the trend and thus prevent us from entering a trade late in the game.
The MACD has 3 basic parts: the zero line, histogram and the signal line. The zero line serves as the midline or borderline between uptrend and downtrend. If the histogram forms above this zero line, the market is considered to be in an uptrend, while it is in a downtrend if the histograms form below it. The signal line helps to identify points of entry and gives warning signs for price reversals. The histograms cross above the signal line if price is moving up and they cross under the signal line if price is moving down.
Below, you can see that price was initially in an uptrend. The price was above the dodger blue line, the channel was above the 200 EMA, and the MACD as above the zero line. But as price began to move down, MACD histograms also started to cross under the zero line. This meant that price is now beginning to reverse. Not long after, price had crossed under the 200 EMA, pulling with it the channel that also crossed under the 200 EMA. At that point, the MACD is totally under the zero line, confirming the down trend.
Forex Strategy Master
Long Entry Rules
1. Price and EMA channel are above 200 EMA.
2. Price makes a swing low above the 200 EMA, which means red SR dots must form above 200 EMA.
2. Price closes above the dodger blue EMA 15 (applied to high).
3. Enter a buy trade if MACD histogram is above the signal line. For additional confirmation (optional), the MACD histogram is above the zero line as well.
4. Stop loss along the magenta EMA 15 (applied to close).
5. Take profit at 1:1. You have an option to trail your stops instead of, or along with, placing a hard target. Trail your stop under every new swing low or magenta 15 EMA line.
Long Example :
Here’s a trade on the GBPUSD 4 hour chart.
The 200 EMA is way below the price and the 15 EMA channel. Price closed above the upper channel line and the previous SuppRTF level before closing. At this point, the MACD histogram is above the zero line and crossed above the signal line, so we can place a buy trade.
Set the stop loss along the lower channel line and the take profit at the same distance as the stop loss. If you have time to monitor the trade, you may trail the stop loss along the magenta line then under every new swing low that formed, based on the newly formed red SuppRTF dots.
Short Entry Rules
1. Price and EMA channel are under 200 EMA.
2. Price makes a swing high under the 200 EMA, which means blue SR dots must form under 200 EMA.
2. Price closes under the magenta EMA 15 (applied to close).
3. Enter a sell trade if MACD histogram is under the signal line. For additional confirmation (optional), the MACD histogram is below the zero line as well.
4. Stop loss along the dodger blue EMA 15 (applied to high).
5. Take profit at 1:1.You have an option to trail your stops instead of, or along with, placing a hard target. Trail your stop above every new swing high or dodger blue 15 EMA line.
Short Example :
Below is a sell trade on the USDCHF 1 hour chart. Price and the 15 EMA channel had been under the 200 EMA for some time now indicating a down trending market.
 Price breaks under the magenta line and the red SuppRTF. At the bottom, we can see that the MACD histogram is below the zero line and the signal line, so we can place a sell trade at the close of the candle.
Set the stop loss along the blue channel line and the take profit at 1:1. In less than 30 minutes, price tagged the take profit and the trade was closed.
Written by Russ Horn”

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