Trend Lord Arrows Forex Trading Strategy

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Trend Lord Arrows Forex Trading Strategy

Traders look for trading strategies that could produce high yields with a high win rate and this is rightfully so. These are the main ingredients of a winning trading strategy. This is easier said than done. Traders look for the perfect pattern or the “Holy Grail” of trading indicators to accomplish this. However, this often does not come from one source. In fact, it should be a variety of factors, clues and indications that should point traders to the right trading direction. This is called confluence.

One of the most important factors for getting a good quality setup is confluence. It significantly increases the probability of having price move in the direction of the trade. It also allows traders to be more accurate with trade entries. This results in trades that have lesser drawdowns, higher yields and a higher win rate.

Trend Lord Arrows Forex Trading Strategy is a strategy that produces trade setups based on a confluence of two high probability trading indicators. This puts traders in a position wherein they could take trades that have a relatively high probability of producing profits while keeping drawdowns at a minimum and maximize yields.

Trend Lord

As the name suggests, Trend Lord indicator is a custom technical indicator that helps traders identify trend direction.

Trend Lord is an oscillating indicator that is displayed using histogram bars. The bars could rise and fall depending on the direction of the trend. The bars also change color to help traders identify if the trend is bullish or bearish. Steel blue bars indicate a bullish trend, while crimson bars indicate a bearish trend.

The Trend Lord indicator could be used in a couple of ways. First, it could be used as a trend filter. Traders would often want to align their trades with a bigger picture trend. Because the Trend Lord indicator is geared towards the mid-term trend, traders could use it to filter out trades that are not inline with the trend while taking momentum-based trades.

It could also be used as an entry trigger. Because Trend Lord indicator produces bars that change colors, it is quite easy for traders to identify possible trend reversal points. Traders could use this signal in confluence with another high probability trend indicator to produce high quality trend reversal setups.

Buy Sell Arrow Scalper

Buy Sell Arrow Scalper is a trend following indicator which helps traders identify trend direction and trend reversals. It plots a line on the price chart moving along with where price is going. The color of the line indicates the direction of the trend. A blue line indicates a bullish trend while a red line indicates a bearish trend. The line also has bars attached to it. During bullish markets, the bars are attached below the line. During bearish markets, the bars are attached above the line. Lastly, the indicator also plots an arrow to indicate trend reversals. These arrows occur whenever the line changes color and points the direction of the trend reversal.

Although this indicator is named as Buy Sell Arrow Scalper, it is not exclusive only for scalpers. It is applicable in any timeframe and could reliably indicate trend direction. This allows day traders and swing traders alike to trade using this valuable technical trading indicator.

Trading Strategy

This trading strategy produces trade signals simply based on the confluence of the Trend Lord indicator and the Buy Sell Arrow Scalper.

On the Trend Lord indicator, signals are considered whenever the bars change color. On the Buy Sell Arrow Scalper, signals are considered whenever the line changes color and an arrow is plotted on the chart.

The key to trading this strategy well is by looking for signals that occur at the same time. Confluences that are closely or perfectly aligned tend to occur whenever the market is gaining momentum opposite the current trend direction. Having signals that occur exactly at the same time or at most lag by one bar tend to produce high quality trade signals.

Trades are kept open until any of the two indicators show signs of a probable trend reversal. The stop loss should also be trailed as price moves in the direction of the trend in order to protect profits coming from sudden trend reversals.

Indicators:

  • Buysellarrowscalper (default settings)
  • TrendLord (default settings)

Preferred Time Frames: 15-minute, 30-minute, 1-hour and 4-hour charts

Currency Pairs: major and minor pairs

Trading Sessions: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • The Trend Lord indicator should change to steel blue.
  • The Buy Sell Arrow Scalper indicator should change to blue and plot an arrow pointing up.
  • These bullish signals should be closely aligned.
  • Enter a buy order on the confirmation of the conditions above.

Stop Loss

  • Set the stop loss below the Buy Sell Arrow Scalper bar.

Exit

  • Close the trade as soon as the Trend Lord bar changes to crimson.
  • Close the trade as soon as the Buy Sell Arrow Scalper indicator changes to red and plots an arrow pointing down.

Trend Lord Arrows Forex Trading Strategy

Trend Lord Arrows Forex Trading Strategy 2

Sell Trade Setup

Entry

  • The Trend Lord indicator should change to crimson.
  • The Buy Sell Arrow Scalper indicator should change to red and plot an arrow pointing down.
  • These bearish signals should be closely aligned.
  • Enter a sell order on the confirmation of the conditions above.

Stop Loss

  • Set the stop loss above the Buy Sell Arrow Scalper bar.

Exit

  • Close the trade as soon as the Trend Lord bar changes to steel blue.
  • Close the trade as soon as the Buy Sell Arrow Scalper indicator changes to blue and plots an arrow pointing up.

Trend Lord Arrows Forex Trading Strategy 3

Trend Lord Arrows Forex Trading Strategy 4

Conclusion

This trading strategy could produce good quality setups in markets that have a strong propensity to reverse strongly. These are trendy markets that could easily develop a trend whether it is bullish or bearish.

It is not advisable to use this strategy in a choppy market as this could produce signals that do not result in a trend and could cause some minor losses. If used in the right market condition, this strategy could do wonders.

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