AVQ Trend Forex Trading Strategy

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AVQ Trend Forex Trading Strategy 1

Trend following strategies are some of the more higher return trading strategies that could also have high probability trades. One of the keys to success when implementing trend following strategies is identifying market conditions with decent trend strength.

The AVQ Trend Forex Trading Strategy is a strategy that allows traders to easily scan for markets and determine if the market has a decent trend strength using a couple of complimentary indicators.

The AVQ Trend Indicator

The AVQ Trend indicator is a trend following custom indicator. It paints bars on the price chart overlaid on the candlesticks. These bars are painted a certain color when the market is bullish and another when the market is bearish. For this template, we have set the indicator to paint green bars for bullish trends and brown bars for bearish trends.

The AVQ Trend indicator is particularly excellent in determining the short-term trend. It hugs price closely yet allows traders to determine the short-term trend quite clearly. It also doesn’t change colors too often. This allows traders to trigger trade entries based on trends without worrying too much if the trend change is just a short run which may reverse immediately. Although it is not perfect, it works quite well as an entry trigger based on the short-term trend reversals.

GG RSI CCI Indicator

The GG-RSI-CCI indicator is a custom MT4 indicator which is also works well as a trend following indicator. It is based on the confluence of the direction indicated by the RSI and CCI indicators.

This indicator prints bars on its own window which changes color whenever the trend direction changes. For this template, we have set the colors to be green for bullish trends, red for bearish trends, and yellow when the market is still indecisive.

Trading Strategy Concept

This strategy is a trend following strategy based on the confluence of the above custom trend following indicators.

The GG-RSI-CCI indicator would be our initial trend filter. Whenever this indicator starts printing green bars, we will consider the market to be bullish, thus we will only be looking for buy trade setups. On the other hand, if the GG-RSI-CCI indicator starts printing red bars, we will consider the market bearish and would only be taking sell trade setups.

We then take our entry trigger based on the AVQ Trend custom indicator. We will be taking the trade as soon as the AVQ Trend bars changes color. On a bullish market, we will enter a buy trade once the AVQ Trend indicator starts printing green bars. If the market is bearish, we will take a sell trade once the AVQ Trend indicator prints a brown bar.

We will then be holding on to the trade until the market shows signs of a slowing trend strength. We will then exit the trade as soon as the market starts to slow down. This will be based on the GG-RSI-CCI indicator changing to color yellow.

Indicators:

  • AVQ_trend
    • Length: 15
  • GG-RSI-CCI
    • Avg_Period1: 4
    • Avg_Period2: 6
    • Ind_Period: 25
  • Fractals

Timeframe: 15-min, 30-min, 1-hour, 4-hour charts

Currency Pair: any major and minor pair plus some crosses

Trading Session: any

Buy (Long) Trade Setup

Entry

  • The GG-RSI-CCI indicator should be printing green bars indicating that the market is bullish
  • Enter a buy order as soon as the AVQ Trend indicator starts printing green bars

Stop Loss

  • Set the stop loss at the fractal below the entry candle

Exit

  • Close the trade as soon as the GG-RSI-CCI indicator bars changes to yellow

AVQ Trend Forex Trading Strategy 1

AVQ Trend Forex Trading Strategy 2

Sell (Short) Trade Setup

Entry

  • The GG-RSI-CCI indicator should be printing red bars indicating that the market is bearish
  • Enter a sell order as soon as the AVQ Trend indicator starts printing brown bars

Stop Loss

  • Set the stop loss at the fractal above the entry candle

Exit

  • Close the trade as soon as the GG-RSI-CCI indicator bars changes to yellow

AVQ Trend Forex Trading Strategy 3

AVQ Trend Forex Trading Strategy 4

Conclusion

This strategy is an excellent trend following strategy which could allow for high return trade setups. Because this strategy makes use of complimentary indicators and takes trades on the confluence of such indicators, it assumes that the trend strength is indeed strong. Since trend strength is behind the trades, this allows traders to take trades that have a tendency to produce high returns as the market starts to rally on the direction of the trend.

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