This trading strategy is mainly based on price action context, where the Trend Bolt indicator adds a confluence to it. As it is based on highly accurate indicators and raw price action, this trading strategy can generate modest outcomes. Moreover, the trading method is so simple that a novice trader can make a good outcome from it. Furthermore, we will use only one technical indicator called Trend Bolt, but it works based on Moving Average, MACD, and Stochastic calculations to understand the market momentum.
What Is the Trend Bolt Trading Strategy?
The Trend Bolt Trading Strategy is a trend following strategy, where the Trend Bolt indicator shows the strength of the ongoing trend. In the right corner of the chart, you will see the indicator showing green and red arrows under Moving Average, MACD, and Stochastic, which are separated by various timeframes from M1 to D1. Trend Bolts indicator calculates the high and low of the market on each timeframe and provides the best trading conditions. The higher the percentage of the trend strength it shows, the higher the probable trade you will get. Along with this, you have to understand the price action context properly. Without knowing the price action, you may not be able to trade this trading method accurately.
What Is Price Action?
Regarding the movement of market prices, all monetary markets make information throughout fluctuating time spans. And that information is shown on the price charts. Consider that price charts depict the convictions and activities of all market members. Whether human or PC, trading a market during a specific timeframe, those convictions are shown on a market’s price chart as forex price action. For some random time-span, lagging price indicators such as the Moving Average Convergence Divergence (MACD), the Stochastic Oscillator, and the Relative Strength Index (RSI) make the most use since a market’s price action depicts all the factors affecting that market. On the contrary, other indicators can now and then be an exercise of futility. There are traders who may state that price movement gives all the forex price action signals you will actually have to plan a productive and high-possibility trading framework. Those signals are aggregately known as price action trading techniques. They convey a method of sorting out a market’s price movement. As the same as helping with foreseeing its future movement, with a serious level of precision, that allows you a high-possibility trading technique.
The Trend Bolt Trading Strategy for MT4
As the Trend Bolt indicator shows the market momentum and trend strength, we also look at the price action and possible support and resistance levels to enter and exit a trade. However, there is no 100 percent guarantee that you can win each and every trade in forex trading. So, you have to build a trading strategy combining indicator and price action context that gives you high exactness.
Let’s look at the trading indicator we are using in The Trend Bolt Trading Strategy for MT4:
- Trend Bolt Indicator
Trend Bolt Indicator
The Trend Bolt Indicator is one of the most anticipated MetaTrader4 indicators that has ever been made. Trend Bolt indicator helps traders to identify the market bias in a very easy way. However, if you are a forex trader, you better know how difficult it is to identify the market trend. Trend Bolt helps traders to know which way the market is heading and what the strength of the trend is.
How Does It Work?
- Trend Bolt helps to identify the bias of the given market and shows the best direction to trade.
- It shows trend strength in the percentage.
- You can apply it on any timeframe.
- It analyses three indicators (MACD, MA, Stochastic) to cross-relevance the patterns.
Let’s look at the indicator we are using in the Trend Bolt Trading Strategy for MT4:
Bullish Trading Strategy
You can use any timeframes from 5 minutes to daily to trade the Trend Bolt Trading Strategy for MT4. However, it works very well in 1-Hour and 4-Hour timeframes as it cancels the noise of the short term impacts of the fundamental events.
In addition, you can choose any currency pairs from the market watch. For instance, AUDUSD, EURUSD, USDJPY, GBPUSD, EURJPY, USDCAD, USDZAR, GBPJPY, EURNZD and many more.
Bullish Trading Conditions
- The market is trending upward.
- Trend Bolt indicator shows more than 60% of the bullish strength.
Entry
If the market is showing an upward trend and the trend bolt indicator displays more than 60% of the trend strength, then you can enter a buy trade. However, you can wait for an impulsive bullish candle close to executing a buy trade as well.
Stop Loss
As this trading strategy is based on market trends, the current bias is expected to continue as long as the price trading is above the recent swing low. So, place your stop-loss order below the ongoing swing low level with a minimum of 10 to 15 pips buffer.
Take Profit
By calculating a 1:2 or 1:5 risk-reward ratio, you should target your profit. Otherwise, you can target the upcoming prospective resistance level to take the profit.
Bearish Trading Strategy
In a bearish trading strategy, you can also use any time frame from 5 minutes to days to trade the Trend Bolt Trading Strategy for MT4. However, it works very well in 1-Hour and 4-Hour timeframes as it cancels the noise of the short-term impacts of the fundamental events.
In addition, you can choose any currency pairs from the market watch. For instance, AUDUSD, EURUSD, USDJPY, GBPUSD, EURJPY, USDCAD, USDZAR, GBPJPY, EURNZD and many more.
Bearish Trading Conditions
- The market is trending downward.
- Trend Bolt indicator shows more than 60% of the bearish strength.
Entry
If the market is showing a downward trend and the trend bolt indicator displays more than 60% of the trend strength, then you can enter a sell trade. However, you can wait for an impulsive bearish candle close to executing a sell trade as well.
Stop Loss
As this trading strategy is based on market trends, the current bias is expected to continue as long as the price trading is below the recent swing high. So, place your stop-loss order above the ongoing swing high level with a minimum of 10 to 15 pips buffer.
Take Profit
By calculating a 1:2 or 1:5 risk-reward ratio, you should target your profit. Otherwise, you can target the upcoming prospective support level to take the profit.
Conclusion
The Trend Bolt trading strategy for MT4 is the best as well as the most reliable trading system because it is based on price action context. However, to achieve a better outcome from this trading method, you have to manage your trades very well. Moreover, always follow the money management rules to prevent unwanted losses.
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