The 4H Trading System CMA For MT4 is a trend trading method with a CMA indicator where we can generate profitable trades in the 4H timeframe. This trading strategy uses the basic concept of identifying market momentum from the dynamic line and increase the trading probability from the Oscillator.
Overall, this trading strategy is applicable in any currency pairs and on any financial market, and traders from beginners to advance can profit from it.
Tools of The 4H Trading System CMA For MT4
This trading system uses two important trading indicator as listed below:
- Best Forex Signal
- CMA (Custom Indicator)
Setting these indicators in the MetaTrader 4 platform is very easy, where you can copy these files and paste them on Data Folder> MQL4> Indicators.
Later on, you have to restart the MT4 to see this indicator on the list and open it from the indicators list. Primarily they will be in the more section from the indicators group.
In the image above, we can see how the indicators look like in the chart. The above is the GBPUSD H4 chart, where we can see the price is moving up within an uptrend. Moreover, the price becomes more bullish as soon as it rejects the CMA Dynamic line.
In the below section, we will see a short brief of these trading tools:
Best Forex Signal
This indicator is the custom made indicator, represented in two lines. The blue colored line has a higher value, and it moves slower than the pink color line.
Therefore, when the pink color line crosses the Blue line, it will indicate a new trend. In an uptrend, the crossover will happen upside, and on a downtrend, the crossover will happen downside.
You can apply this indicator in any currency pairs and any timeframes, but this strategy focuses only on H4 timeframes as this timeframe can provide the best output.
CMA
CMA is a dynamic line shown in the main chart that works like the traditional Simple Moving Average.
This trading indicator’s principal significance is that it can provide a more reliable signal than the moving average, and traders can define the corrective and moving markets more precisely.
In this strategy, the buying sentiment is valid when the price rejects from the CMA level. On the other hand, the selling sentiment is valid when the price rejected bulls from this level.
Moreover, we can define the market context with these tools-
- when the price is above this indicator, the overall market sentiment is bullish
- when the price is below this indicator, the overall market sentiment is bearish
- If this indicator is making high or low, we may consider the trend as strong.
- If this indicator is flat, we may consider the trend as corrective.
The 4H Trading System CMA For MT4
The 4H Trading System CMA For MT4 is applicable in both bullish and bearish markets, and in the following section, we will see details of this strategy in both market conditions.
The main of this system is to find the market direction in both indicators. Therefore, the trade is valid only when the price is getting the same direction from these indicators.
In any case, if both indicators dont show the same direction, you can leave the chart and move to other markets.
There are no restrictions on the currency pairs to apply it in any currency pairs from majors to exotics.
Bullish 4H Trading System CMA
The bullish trading strategy applies to all financial markets, but you should apply it to major currency pairs to get the best output.
As the name says, this strategy is for 4-hour timeframes only. You can make a profitable swing trading method with the system where you dont need to worry about timing. You can take trades after confirming all conditions at any time within trading days.
Conditions For Buy Trades
- Price is moving up.
- Price corrects lower and rejects the CMA line, and a candle closes above it.
- The Best Forex Signal shows a Buy signal (The Pink line crosses the blue line upside).
Entry Idea
The closing candle is essential for this strategy. Therefore, you should enter the trade after the candle closes only.
While taking the entry, the candle should be bullish, and the location of the closure should be above the dynamic line.
Stop Loss Idea
The price should move higher or lower in trend trading by creating a lower high or higher low. When these levels violate, the price may start consolidating or reverse.
Therefore, for a bullish trade, stop loss must be below the swing low level.
Take Profit Idea
The best benefit of trend trading is that you can hold the trade as long as possible. Therefore, close 50% of the trade after 1:1 R: R and let the profit run until it reaches a vital resistance level.
Bearish 4H Trading System CMA
The Bearish trading strategy applies to all financial markets, but you should apply it to major currency pairs to get the best output.
Apply this strategy on 4-hour timeframes only to make a profitable swing trading method with the system where you dont need to worry about timing.
Conditions For Sell Trades
- Price is moving down.
- Price corrects higher and rejects the CMA line, and a candle closes below it.
- The Best Forex Signal shows a Sell signal (The Pink line crosses the blue line downside).
Entry Idea
You should enter the trade after the candle closes only. While taking the entry, the candle should be bearish, and the location of the closure should be below the dynamic line.
Stop Loss Idea
The price should move higher or lower in trend trading by creating a lower high or higher low. When these levels violate, the price may start consolidating or reverse.
Therefore, for a Bearish trade, stop loss must be above the swing low level.
Take Profit Idea
The best benefit of trend trading is that you can hold the trade as long as possible. Therefore, close 50% of the trade after 1:1 R: R and let the profit run until it reaches a vital Support level.
Conclusion
The 4H Trading System CMA For MT4 is a profitable swing trading strategy, where you can make a decent profit from the market at any market condition.
However, this strategy is very profitable, while the price is moving within a trend. So, it would help if you avoid trading in a volatile market condition.
