Momentum forex strategy based in 6 candle chart formation. Strategy looks to define sudden price momentum by both candle and oscillator – CCI. Once it does enter the trade, profits are ceaselessly protected by trailing stop adjusted after each candle close.
Get MT4 Expert Advisor trading this Forex strategy ↴
Backtest and optimize for any currency pair. Trade multiple instruments simultaneously, day and night.
Trade automatically, without errors and emotions. Save your time and energy.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Strategy simply finds a candle, that is larger than any of previous 5 candles. It must also overcome low/high of the formation in the direction of the trend. Trend is defined by CCI indicator. The free expert advisor is provided freely for our readers. If you find it useful let us know in the comments !
Used forex tools and indicators
Following setting have been used to achieve provided results in 1h chart of EURUSD (test since 2013).
Commodity channel index (CCI 500). Central zone is added to the oscillator window to distinguish between uptrend and the downtrend. Price moving in a central (no trade) zone indicates momentum that is not suitable for entry and it is not traded.
BIG candle. Candle with defined size (min max in experts inputs). Signal candle has wider body than any of previous 5 candles. It also closes beyond low/high of first candle of the formation.
Universal trailing stop. Trailed behind each closed candle. Extra deviance can be applied in expert inputs to make the room for market breathing larger.
Forex strategy rules
SELL
CCI trending below -25 zone (or any other defined by user: sell below CCI line input). This is considered to be downward market momentum. Sell only conditions are applied.
Big candle. Larger than any of previous 5 candles. Closes below the low of candle at the beginning of signal formation.
We enter short once the candle closes. Trailing stop is placed 130 pips above the high of signal candle.
Take profit is applied at value of 90 pips.
BUY
CCI trending above zone (or any other defined by user: buy above CCI line input). This is considered to be upward market momentum. Buy only conditions are applied.
Big candle. Larger than any of previous 5 candles. Closes above the high of candle at the beginning of signal formation.
We enter long once the candle closes. Trailing stop is placed 130 pips below the low of signal candle.
Take profit is applied at value of 90 pips.
Get MT4 expert advisor trading this forex strategy
We recommend you to use this forex strategy with one of our trusted forex brokers
(STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.
