Trend Catching Modified Forex Trading System

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Trend Catching Modified Forex Trading System

The trend catching modified is a forex trading strategy that works best on a 15-minute timeframe or higher. This strategy is based on the bbstop and channel EMA indicators with other confirming indicators. The best pairs to use in this method is all currency pairs.

MT4 Indicators:

  • Bbstop,
  • Channel Ema,
  • Flat W MACD.

Long Entry:

  • The bbands indicator turns blue.
  • The blue moving average must cross and go upward. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the UP move.
  • The blue moving averages are above the white channel.
  • The MACD histogram is above the zero and the red line.
  • The Flat Trend is green.

These are the steps that you need to follow closely to identify a BUY setup. If you stick to these rules, you will end up with green pips most of the times. The major problem occurs when you try to burn one of the rules.

The take profit and stop loss is at your own discretion. These values depend on the charts on which you are working on.

Short Entry:

  • Open a SELL position exactly when the opposite of the Buy setup occurs which are as follows:
  • The bbands indicator turns red.
  • The blue moving average must cross and go downwards. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the DOWN move.
  • The blue moving averages are below the white channel.
  • The MACD histogram is below the zero line and also below the red line.
  • The Flat Trend is red

When not to trade:

  • When all these rules were not met.
  • When the blue moving averages are stuck to one another, this shows that the market is ranging and this system will not make money in ranging markets.

When to CLOSE your trade:

  • Close automatically if you already took the profit and stop loss in place. However, if you are available to monitor your trades, you can wait for an opposite signal to occur then you close your trade to open the opposite one. This makes you catch more pips than in a fixed take profit setup. Trailing Stop can also be good, however, it should not be too tight as you will be out of the good trades too soon.

Exit also When Flat W MACDchange color.

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