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Butterfly Forex System

Butterfly forex system is a trend following trading system. Butterfly forex system features: Type: Trend Following. Style: Scalping, Day trq...

Butterfly forex system is a trend following trading system.

Butterfly forex system features:

Type: Trend Following.

Style: Scalping, Day trqading, Swing Trading.

Time Fram 1 min or higher.

Currency pairs: any.

Terminal: Metatrader 4.

Profittability 60%.

The Butterfly Forex system works on any time frame from M1 up to the monthly.

For scalping purposes, use M1 and M5 trading charts.

For day trading, use the M5 and M15 charts. For swing trading,

I recommend using the M30, H1 and H4 trading charts.

How To Trade With The Butterfly Forex System

1. Buy Signal Only 3 simple steps needed

1 Open New BUY trade when both the Butterfly Forex triangle and square buy/sell signal are colored GREEN.

2 Place stop loss below the most recent swing low price.

3Take profit when an opposite signal appears on the chart or at a fixed profit target (see more below). It’s that easy!

Looking at the M15 USDCHF chart below, both colors are GREEN (square + triangle), so we open a BUY trade with a stop placed below the most recent swing low! 

Butterfly forex System

Ignore any red sell square signal when the triangle is colored GREEN!

Exit the buy trade (3 options):  Exit the trade for a fixed profit target*  Exit the trade when the triangle (right upper corner of the chart) changes color from GREEN to RED  Exit the trade near the previous swing high level (resistance) *About the fixed profit target: The vast majority of traders prefer to go for a fixed profit target. It’s simple and you don’t need to calculate anything. Below you will find some typical take profit targets for the different time frames:

M1 chart: Aim for 10-25 pips

M5 chart: Aim for 20-35 pips

M15 chart: Aim for 25 -40 pips

M30 chart: Aim for 30-75 pips

H1 chart: Aim for 50-120 pips

H4 chart: Aim for 80-200 pips

D1 chart: Aim for 125-300 pips

Sell Signal

Only 3 simple steps needed…

1 Open New SELL trade when both the Butterfly Forex triangle and square buy/sell signal are colored RED.

2 Place stop loss above the most recent swing high price.

3Take profit when an opposite signal appears on the chart or at a fixed profit target (see more below). It’s that easy! Looking at the M15 EURUSD chart below, both colors are RED (square + triangle), so we open a SELL trade with a stop placed above the most recent swing high!

butterfly Forex

 
Neutral trend or range-bound price action

In this case, ignore all buy and sell square signals on the chart until a trend forms again, either up or down. You can stick with your current open position, if any.

Examples of trades

Butterfly forex system

Butterfly forex system

Download Butterfly Forex System.


2 comments

  1. hi

    I don't get a Triangle on the screen, it is an "r". Any ideas how to fix it? Thanks

    ReplyDelete
    Replies
    1. When the trend change notification or signal arrives, the triangle disappears

      Delete