The Trend Trading System For MT4 is based on current market trend identification and join the rally from a minor correction. This strategy will use multiple indicators to increase the trades probability and enter the trade only when all conditions are met.
In the following section, we will see the basic to this strategy’s core function, including the specific entry conditions in both bullish and bearish environments.
Before proceeding further, let’s get introduced to the trading elements first.
Elements of The Trend Trading System For MT4
In any trend continuation method, it is vital to determine the significant trend first and then join the minor correction rally.
This concept comes from the forex market’s general structure, where the price moves like a ZigZag.
If you have seen any forex chart, you should know that the price does not move straight up or down; instead, the price moves lower even if the primary trend is bullish. Such movement is the international transaction where people and institutes buy and sell currencies at both higher and lower prices.
Therefore, this system’s core trading idea is to wait for a correction and avoid trading if there is no correction.
Let’s see the trading tools of this system:
- Buy Sell
- iFractals
- Mega-Trend
- Target
The above image shows the list of indicators in the chart.
Now, we will move to a short description of these tools:
iFractals
This indicator is similar to the traditional Fractal indicators where the price direction is shown with a bullish and bearish arrow.
The iFractal will provide sell signals if it appears above the price and provides buy signals if it appears below the price.
Therefore, we will anticipate the trend by observing the location of iFractals and move to other tools and see how they send the price direction.
Mega-Trend
The main aim of the Mega Trend is to identify the long term trend of the price. The blue color means buy trend, and the red color is sell trend.
Therefore, the price is bullish above the blue colored line and bearish below the red colored line. We will determine the trend using the price and color location and move to other indicators to increase the probability.
Target
The target indicator is the Pivot Point, and we will use this indicator to set the take profit level.
The pivot point is the price level where buyers’ and sellers’ activity is the same in any chart. Therefore, our view should be neutral at the pivot level, and we will identify the major trend once the price starts to move from Pivot Point.
Later on, the move may hold at any support and resistance levels where the take profit is located.
The Trend Trading System For MT4
In this trading system, we should determine the trend direction from the indicators mentioned above and consider the trend as established if all indicators show the same sentiment.
The forex market is unpredictable, where no one can say the exact price direction in any direction. Therefore, we use multiple tools to increase the trading probability and combine them to find the exact trading direction.
In the following section, we will see the exact trading strategy, including conditions and entry rules.
Bullish Trend Trading System For MT4
There are many trend trading systems in the forex market, where all strategies follow the same concept. The best benefit of this strategy is that you can apply it in any currency pairs and any timeframe.
Based on the fractal concept, the price action is the same in any timeframe, but the higher timeframes provide accurate directions.
Follow these conditions to enter the trade:
- The price is moving higher in one timeframe higher (if you are trading in H1, focus on the H4 trend, and if you are trading on H4, focus on the daily trend).
- Later on, move to the lower timeframe and confirm a bullish iFractals below the price and wait for a candlestick confirmation.
Entry
After observing the suitable market condition, wait for bearish rejection candles. It might be a bullish pinbar, engulf bar, or two bar reversal. Enter the trade once those criteria are filled up.
Stop Loss
As the price moves within a bullish trend, there might be some minor correction in the swing that you should consider while setting the stop loss. Make sure to use some buffer in SL levels to avoid unexpected SL hit.
Take Profit
The price may move higher if above the Pivot Point level, but there is some barrier in the price in the R1 or R2 levels, where you should close the trade.
Bearish Trend Trading System For MT4
The best benefit of this strategy is that you can apply it in any currency pairs and any timeframe.
Based on the fractal concept, the price action is the same in any timeframe, but the higher timeframes provide accurate directions. Follow these conditions to enter the trade:
- The price is moving lower in one timeframe higher (if you are trading in H1, focus on the H4 trend, and if you are trading on H4, focus on the daily trend).
- Later on, move to the lower timeframe and confirm a bearish iFractals above the price and wait for a candlestick confirmation.
Entry
After observing the suitable market condition, wait for Bullish rejection candles. It might be a bearish pinbar, engulf bar, or two bar reversal. Enter the trade once those criteria are filled up.
Stop Loss
As the price moves within a bearish trend, there might be some minor corrections in the swing that you should consider while setting the stop loss. Make sure to use some buffer in SL levels to avoid unexpected SL hit.
Take Profit
The price may move higher if it is below the Pivot Point level, but there is some barrier in the price in the S1 or S2 levels, where you should close the trade.
Conclusion
The Trend Trading System For MT4 is a very profitable strategy, distinguishing the trend and range market.
Overall, you can create a strong portfolio with this trading system.
