The Withe Tiger Trading System For MT4 is a swing trading system based on two custom made indicators. You can build a profitable trading portfolio and achieve an average monthly gain with this trading system.
In the following section, we will see details of The Withe Tiger Trading System For MT4 including the bullish and bearish trading strategy, take profit and stop loss idea, trade management rules, and trading psychology.
The Withe Tiger Trading System For MT4
This trading system focuses on momentum continuation where you should follow the major market trend from a minor correction.
As it is a purely technical analysis method, we should follow the list of technical indicators as listed below:
- SFCS 5 dynamic line
- SFCC 5
If we implement these indicators in the chart, it will be like this:
This trading system focuses on two confirmation in every trade from these two indicators. However, taking decisions from these indicators is very easy as most of the price direction is set based on the colour change.
Both indicators have Green and red colours, and when the red colour changes to green, it is an indication that the price context changed from bearish to bullish.
On the other hand, when the colour changes from green to red, the price may follow the bearish movement.
Considering the price movement and momentum, we will focus on taking the trading decisions based on these trading indicators and trade management techniques.
Remember that forex trading is a leveraged market, and there is a risk of losing all of the investment. Therefore, you should focus on trade management techniques in every system.
In the following section, we will see the exact trading strategy in both the bullish and bearish market conditions.
Bullish Withe Tiger Trading System For MT4
The bullish trading strategy is based on the minor bearish correction from a strong bullish leg that starts from a significant level.
As a trader, we aim to join the rally from the minor correction so that we can get a higher reward with a minimum risk.
This trading strategy is capable of providing profitable trades in the forex market. Therefore, you can use this system in any currency pairs available in your broker.
Moreover, there is no restriction on timeframes. In MT4, there are 9 timeframes from 1 minute to 1 month, and you can use this system in any timeframes.
Conditions for Bullish Trades
- Identify the market that is moving upside from an important support level.
- Identify strong bullish pressure and correction.
- The SFCS 5 dynamic line should change the colour from Red to Green.
- The SFCC 5 indicator in the separate window changes the colour from Red to Green.
Entry Guideline
At first, match trading conditions with the price and wait for a candle to come above the green line.
We are focusing on buy trade, so a bullish candle is significant. Later on, enter the trade after closing the candle and never take trades from a running candle.
Stop Loss Technique
If you are trading at a daily timeframe, the ideal stop loss will be 100 to 120 pips. On the other hand, if you are taking trades on 4-hour timeframes, the stop loss will be 50 to 70 pips. However, the stop loss might change based on the market structure, behaviour, fundamentals, and support levels.
Take Profit Levels
There are two ways to set the take profit in the bullish trading system. The first one is based on the 1:1 risk vs reward ratio, and the second one is based on price levels.
While setting the take profit based on price levels, consider the speed of price in those areas.
Bearish Withe Tiger Trading System For MT4
The bearish trading strategy is based on the minor correction from a strong bearish leg that starts from a significant resistance level.
This trading strategy is capable of providing profitable trades in the forex market. Therefore, you can use this system in any currency pairs available in your broker.
Moreover, there is no restriction on timeframes. In MT4, there are 9 timeframes from 1 minute to 1 month, and you can use this bearish system in any timeframes.
Conditions for Bearish Trades
- Identify the market that is moving downside from an important Resistance level.
- Identify strong bearish pressure and bullish correction.
- The SFCS 5 dynamic line should change the colour from Green to Red.
- The SFCC 5 indicator in the separate window changes the colour from Green to Red.
Entry Guideline
At first, match trading conditions with the price and wait for a candle to come below the Redline.
We are focusing on buy trade, so a bearish candle is significant. Later on, enter the trade after closing the candle and never take trades from a running candle.
Stop Loss Technique
If you are trading at a daily timeframe, the ideal stop loss will be 100 to 120 pips. On the other hand, if you are taking trades on 4-hour timeframes, the stop loss will be 50 to 70 pips. However, the stop loss might change based on the market structure, behavior, fundamentals, and support levels.
Take Profit Levels
There are two ways to set the take profit in the bearish trading system. The first one is based on the 1:1 risk vs reward ratio, and the second one is based on price levels.
While setting the take profit based on price levels, consider the speed of price in those areas.
Summary
Let’s summarise The Withe Tiger Trading System For MT4
- The Withe Tiger Trading System For MT4 is a continuation strategy as it focuses on momentum continuation.
- Trading decisions from this strategy is straightforward as most of the price direction is set based on the colour change.
- The bullish and bearish entry comes from the strong market trend and a minor correction.
- The SFCS 5 colour should indicate bullish and bearish entry in both types of trade.
- The Ideal stop loss is 100- 120 pips in D1, and for H4, the stop loss will be 50- 70 pips.
- Take Profit will be based on 1:1 R: R and major price levels.
