The Trend Navigator Strategy for MT4 is a profitable strategy based on some indicators to identify market moves. In this strategy, we will use some indicators to determine or get a better outlook on the market. Moreover, this is a very profitable strategy and could be used by entry-level traders. This strategy is for daytime trading.
The Trend Navigator Strategy for MT4
A very known proverb we all know at this (Forex) market is “Trend is always your friend,” which means if anyone can identify the trend and with some technical knowledge can easily make more winning trades than losing ones. In this strategy, we will see the market/chart at 15 min and 30 min timeframes for daytime trading only (Not for the long term).
Here in this strategy, we will use ‘Trend Navigator,’ a slow trend indicator that can be easily filtered. The filter chosen is the ‘profiter’ with a fast setting where the results are promising. The best of this indicator is that it does not recalculate. Moreover, this strategy applies to both major and cross currency pairs.
Currency pairs
AUD/USD, AUD/CAD, AUD/NZD, NZD/USD, USD/JPY, EUR/USD, EUR/AUD, EUR/NZD, EUR/JPY, AUD/JPY, NZD/CAD, CAD/JPY.
Let’s have a look at the trading tools used in this strategy:
- Trend Navigator
- Moving Average Convergence and Divergence (MACD 2 line)- value (12,26,9)
- Protofilter fast- value (7 period)
- Symbol changer.
After applying these indicators, the chart will look like the image below:
In this trading strategy, we will follow the ‘Trend Navigator’ indicator to get enter or exit signals and other indicators like MACD 2 line (12, 26, 9), and Profitfilter fast (7 periods)) for adding confirmations. Additionally, we can see the live charts’ status from the ‘Symbol changer’ indicator.
Here MACD 2 contains three (12, 26, 9) periodic EMA. We all know that The Exponential Moving Average (EMA) is a reliable way to measure market trends. In the MACD, a window, there are two Moving averages to show the short-term market trend. If The blue line crosses above the red line, it will indicate buying pressure. On the other hand, if the blue line crosses down the red line, it will mean selling pressure.
Later on, the Protofilter fast (7 period) is a custom-made indicator that shows buyers’ and sellers’ density for a specific period with a Histogram. The Profitfilter Histogram will be green for the uptrend, and it will change to a red color for the downtrend.
Lastly, the Symbol changer indicator contains currency pairs (opened or selected at the symbols window of the MT4) and time frames (of MT4). Therefore, we can easily change the window of currency pairs and time frames by this indicator window.
After applying all this at MT4, the ‘Trend Navigator’ will send alerts when the market phase changes from bull to bear or bear to bull.
Bullish Trading Strategy
This strategy is applicable in the m15 and m30 timeframe. Therefore, it can apply it as an intraday trading strategy.
Moreover, this trading strategy works well in major currency pairs and cross pairs that have been listed above.
Additionally, there is no limitation for the trading session, so you can apply it at any time from Monday to Friday.
Bullish Trading Conditions
- The ‘Trend Navigator’ indicator shows a green (buy) arrow on a 15 min chart.
- MACD 2 line (12, 26, 9) blue EMA crosses the Red at the upside.
- Green bars start to show up at the ‘Protofilter fast (7 periods)’ indicator window.
Entry
When the market changes the trend, trend Navigator will send an alert. After that, we have to check out MACD and Protofilter fast for more confirmation. When the movement is being upside from sideway or downtrend, the blue EMA will cross the Red EMA (upside) in MACD, and bars of ‘Protofilter fast (7period)’ will be green. When the chart fulfills all these criteria, it confirms the buy order situation by this strategy, and that’s the entry point.
Stop Loss
Initial stop loss will be below the previous swing low. As this strategy is daytime trading, the stop loss will usually be below the last day’s or current day’s swing low.
Take Profit
Take profit or exit point should be the opposite arrow (red/bear arrow) created by the ‘Trend Navigator’ area.
Bearish Trading Strategy
The bearish trading strategy is also applicable in the m15 and m30 timeframe, and it works well in all major and cross pairs that have been listed above.
Additionally, there is no limitation for the trading session, so you can apply it at any time from Monday to Friday.
Bearish Trading Conditions
- The ‘Trend Navigator’ indicator creates a red (sell) arrow at a 15 min chart.
- MACD 2 line (12, 26, 9) blue EMA crosses the Red at the downside.
- Red bars start to show up at the ‘Protofilter fast (7 periods)’ indicator window.
Entry
When the market changes the trend, trend Navigator will send an alert. After that, we have to check out MACD and Protofilter fast for more confirmation.
When the movement is being downside from sideways or uptrend, the blue EMA will cross the Red EMA (downside) in MACD, and bars of ‘Protofilter fast (7period)’ will be red. When the chart fulfills all these criteria, it confirms the buy, and you should enter the trade as soon as the candle closes.
Stop Loss
Initial stop loss is above the previous swing high. As this strategy is based on day trading, the stop loss could be above the last day’s or current day’s swing high.
Take Profit
Take profit or exit point should be the opposite arrow (green/bull arrow) created by the ‘Trend Navigator’ area.
Conclusion
The Trend Navigator strategy for MT4 is a profitable and effective trading strategy. Therefore, even entry-level traders can also make a consistent profit each month if they follow this trading strategy accordingly.
However, while taking the trading decision, it’s better to avoid/be more careful to take entries during NFP, Interest Rate decisions, etc., when the market remains unstable/volatile economic events.
