The forex trend trading is based on three dynamic lines defining long-term and medium-term trends in any financial market. Like other trading strategies, this system focuses on multiple indicators to get a better outlook on the price.
The following section will see details of this strategy, including trading tools, entry, stop loss, and trade management ideas.
The Forex Trend System For MT4
This trading strategy has multiple indicators to ensure the quality of signals. So that if you want to build a professional trading portfolio, this strategy is suitable for you.
Before moving further, we should see the list of indicators used here:
- T1 T2 T3 Lines
- T Stop
- T Alert
- Market Data
- Pivot Points.
- T Long Short
The image below defines these indicators in the MetaTrader 4 chart:
In this strategy, the T1 T2 T3 are dynamic lines that will provide the price’s clear trend. The market outlook is bullish above these lines, and the market outlook is bearish below these lines.
Therefore, we aim to get the price outlook by observing whether it is above or below these lines. If you look carefully, you would see these lines move with a parallel gap that shows three-level dynamic support and resistance lines, and rejection from these levels indicates a sharp movement.
On the other hand, we will focus on the T stop to identify the stop loss level in dots above or below the price. You should find it above the price for a bearish entry and below the bullish entry price.
The market data will also show important market information like the candlesticks open and low price, spread, high price, low price, time, etc. The T Alert will send trading notifications through email or MT4 chart that is effective when traders are busy with other works.
After taking the trade, we will see Pivot Points to determine the SL and TP levels. Usually, we will close buy trades on R1, R2, and R3 levels and close sell trades on S1, S2, and S3 levels.
Bullish Forex Trend System for MT4
This trading strategy is beneficial in both bullish and bearish market conditions. You can apply buy trades in any trading assets in the forex market. However, while trading in major currency pairs, there is a possibility of getting maximum benefit.
On the other hand, you can choose any timeframe that suits your personality. There are no specific rules of the timeframe in this strategy. However, it is recommended to choose the right timeframe as it is directly related to trading psychology.
Conditions of Buy Trade
- The price is residing above the T1, T2, T3 lines and corrects lower.
- After the correction, the price rejects the T lines with an appropriate candlestick pattern.
- T Stop is below the price.
- T Long Short is Bullish and shown in Blue color.
Post Trading Guideline
The entry is valid after matching all conditions. Therefore, you can take the trade after a closing candle with appropriate money management rules.
However, make sure to use stop loss and take profit in every trade as it is a significant risk management rules. The forex market is uncertain, and any unexpected move may happen that can kill your trading balance.
However, the stop loss should be below the T Stop lines and keep a gap between the T Stop Dot and the stop loss.
On the other hand, you can draw necessary static horizontal support and resistance levels and observe the profit price.
If the price slows down from a static resistance level, you can close the trade. Otherwise, you can hold the trade until the next resistance level.
Bearish Forex Trend System for MT4
You can apply bearish trades in any trading assets in the forex market. However, while trading in major currency pairs, there is a possibility of getting maximum benefit.
On the other hand, you can choose any timeframe that suits your personality. There are no specific rules of the timeframe in this strategy.
Conditions of Sell Trade
- The price is residing below the T1, T2, T3 lines and correct higher.
- After the correction, the price rejects the T lines with an appropriate candlestick pattern.
- T Stop is above the price.
- T Long Short is Bearish and shown in red color.
Post Trading Guideline
The entry is valid after matching all conditions. Therefore, you can take the trade after a closing candle with appropriate money management rules.
Make sure to use stop loss and take profit in every trade as it is a significant risk management rules. The forex market is uncertain, and any unexpected move may happen that can kill your trading balance.
The stop loss should be above the T Stop lines. Make sure to keep a gap between the T Stop Dot and the stop loss.
On the other hand, you can draw significant static horizontal support levels and observe the price for taking the profit.
If the price shows down from any static support level, you can close the trade; otherwise, you can hold the trade until the next support level.
Pros and Cones of The Forex Trend System For MT4
This section will see some usefulness and disadvantages of this system that will help you make a proper trading decision.
Pros
- This trading system is profitable in every trading instrument and every timeframe.
- The highest profit will come from the trending market.
- This strategy includes a risk management system by including take profit and stop losses.
- Indicators in this system is custom made with some very useful logics.
Cons
- Does not provide profitable trades in a volatile market.
- Less fortunate in lower timeframes.
- Does not include fundamental events and their effect.
Conclusion
The Forex Trend System For MT4 is suitable for any level of trades from novice to pro. Moreover, this strategy is very easy that will help coders and programmers to automate it.
However, the biggest drawback of this strategy is that it is not profitable in the volatile market. Therefore, you should avoid trading when important news comes.
