Simple candle signal is used, but combined with confirmation by the volumes reading. Trend and momentum are established using two in one solution – ADX forex indicator. System can work both as a scalper in lower time frames and also as a trend following and more conservative day trading strategy.
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.
When used for day trading, it is conservative, with high profit factor and low drawdown. Also, it opens just a few trades per year.
The strategy was tested for profitability on historical data since 2003 (EURUSD 1H tick). It is provided with expert advisor created by theforexkings.com.
Used tools and indicator
Average directional movement index (ADX 500). Position of DI- and DI+ will identify trend. Draw additional line(10 value) in the chart with value. Main ADX line trending above that value will signalize threshold trend momentum. Main ADX line will confirm its sufficient strength of trend.
Candles signal (defined range 20 – 150 pips) Candle with defined range.
Volumes. Volume on signal candle is larger than on any pf previous two candles. Activity is growing and the effect of growing activity is larger candle closing in the direction of trend (effort and adequate result).
Trailing stop (TS extra deviation 60 pips) TS is trailed after each candle close.
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.
Take profit and stop loss. Strategy also uses take profit and stop loss levels. Those are especially useful in lower time frames and when using this trading system as a scalper (expert adivsor).
Forex strategy rules
SELL
ADX mail line trending above line with value of 10. Momentum confirmed.
DI+ line trending below DI- line. Downtrend confirmed.
We will be looking for bearish signal candle with defined range. Volume on signal candle is larger than on any of two previously closed candles. We enter the trade short on signal candle close. TS is placed at the high of candle + extra deviation applied above.
Take profit : 80 pips
Stop loss: not used in test (only TS)
BUY
ADX mail line trending above line with value of 10. Momentum confirmed.
DI+ line trending above DI- line. Uptrend confirmed.
We will be looking for bullish signal candle with defined range. Volume on signal candle is larger than on any of two previously closed candles. We enter the trade long on signal candle close. TS is placed at the low of candle - extra deviation applied below.
Take profit : 80 pips
Stop loss: not used in test (only TS)
Get MT4 expert advisor trading this forex strategy
For best results, 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.
