Strategies

Momentum Up-Down Bars Foreign exchange Buying and selling Technique

Easy buying and selling, it might not be interesting to many merchants, however this would possibly simply be the answer for a lot of new merchants.

Merchants typically search for complicated methods with the notion that complicated methods are those that work. Properly, complicated methods might additionally fail simply as a lot as easy methods do, and easy methods might achieve earnings simply as a lot as complicated methods might.

Typically it’s not a lot about what technique the dealer is utilizing however extra concerning the psyche of the dealer. It’s much less about which technique is greatest, however extra of which technique most closely fits the dealer’s temperament. A fancy technique might work properly for one however might be too tough to implement for one more. A easy technique may not appear adequate for one dealer however might produce constant earnings for one more.

Momentum Up-Down Bars Foreign exchange Buying and selling Technique is a quite simple technique that might be applied by most merchants. It gives entries based mostly on a confluence of momentum reversal alerts coming from two complementary momentum indicators.

Up-Down Bars Indicator

Up-Down Bars indicator is a customized oscillating indicator which helps merchants determine momentum. This indicator counts the variety of bullish bars (shut – open) and the variety of down bars (open – shut).

The indicator shows its readings as histogram bars. Constructive bars point out a bullish momentum whereas detrimental bars point out a bearish momentum.

Crossovers from detrimental to optimistic point out a bullish momentum reversal whereas crossovers from optimistic to detrimental point out a bearish momentum reversal.

Ind-GG01 Indicator

Ind-GG01 indicator is a customized technical indicator which identifies momentum based mostly on a number of components.

This indicator components in shifting averages, Parabolic Cease and Reverse (PSAR), and Bollinger Bands inside its computation. In a method, this indicator is predicated on a confluence of a number of components.

Ind-GG01 signifies pattern course by displaying dots and arrows on the worth chart. Lime arrows pointing up point out a bullish momentum bias, whereas blue dots point out a bearish momentum bias.

Buying and selling Technique

This buying and selling technique trades on confluences coming from the Up-Down Bars indicator and the Ind-GG01 indicator.

Every time a powerful momentum reversal happens, the 2 indicators have a tendency to provide reversal alerts on the identical time. Trades which can be taken at any time when the 2 indicators present alerts which can be aligned have a tendency to provide positive factors on the subsequent few candles.

These momentum shifts have a tendency to start out a brand new pattern. It’s throughout these commerce setups when merchants might achieve extra pips in a single commerce. Merchants who can maintain these trades longer can achieve extra pips on profitable trades.

Nonetheless, there are additionally cases whereby the momentum shift wouldn’t end in a pattern reversal. Throughout these instances, value would journey in favor of the commerce for a number of candles previous to reversing. Because of this, it’s best to exit the commerce when both one of many indicators present indicators of a reversal.

Indicators:

Ind-GG01 (default settings)
UpDownBars

Most well-liked Time Frames: 5-minute, 15-minute, 30-minute, 1-hour, Four-hour and every day charts

Forex Pairs: main and minor foreign exchange pairs

Buying and selling Session: Tokyo, London and New York periods

Purchase Commerce Setup

Entry

Worth ought to cross above the Ind-GG01 dots and arrows.
The Ind-GG01 ought to begin printing lime arrows pointing up indicating a bullish momentum reversal.
The Up-Down Bars ought to cross above zero indicating a bullish pattern.
These bullish momentum alerts ought to be carefully aligned.
Enter a purchase order on the affirmation of the situations above.

Cease Loss

Set the cease loss a number of pips under the low of the entry candle.

Exit

Shut the commerce as quickly because the Ind-GG01 indicator begins printing blue dots.
Shut the commerce as quickly because the Up-Down Bars cross under zero.

Momentum Up-Down Bars Forex Trading Strategy

Momentum Up-Down Bars Forex Trading Strategy 2

Promote Commerce Setup

Entry

Worth ought to cross under the Ind-GG01 dots and arrows.
The Ind-GG01 ought to begin printing blue dots indicating a bearish momentum reversal.
The Up-Down Bars ought to cross under zero indicating a bearish pattern.
These bearish momentum alerts ought to be carefully aligned.
Enter a promote order on the affirmation of the situations above.

Cease Loss

Set the cease loss a number of pips above the excessive of the entry candle.

Exit

Shut the commerce as quickly because the Ind-GG01 indicator begins printing lime arrows pointing up.
Shut the commerce as quickly because the Up-Down Bars cross above zero.

Momentum Up-Down Bars Forex Trading Strategy 3

Momentum Up-Down Bars Forex Trading Strategy 4

Conclusion

This technique might work properly for merchants who’ve the self-discipline on exiting trades at any time when there are indicators of a reversal.

Entries based mostly on this technique have an honest accuracy. If traded proper, this technique might produce trades that may end in earnings extra typically.

Since commerce entries utilizing this technique is a given, it’s the commerce administration ability of a dealer which might matter.

Some merchants who nonetheless haven’t developed the self-discipline of exiting trades on indicators of a reversal might see their trades lose some pips when in reality the commerce had been within the optimistic territory beforehand.

Merchants who can exit previous to the reversal are inclined to have a extra constant revenue. Win are often greater for these merchants. Some merchants who’ve realized to exit trades based mostly on value motion indications of a reversal are inclined to have probably the most earnings. They’ll exit trades on the primary signal of a reversal permitting them to money in whereas positive factors are nonetheless excessive.


Foreign exchange Buying and selling Methods Set up Directions

Momentum Up-Down Bars Foreign exchange Buying and selling Technique is a mix of Metatrader Four (MT4) indicator(s) and template.

The essence of this foreign exchange technique is to rework the collected historical past knowledge and buying and selling alerts.

Momentum Up-Down Bars Foreign exchange Buying and selling Technique gives a possibility to detect numerous peculiarities and patterns in value dynamics that are invisible to the bare eye.

Based mostly on this data, merchants can assume additional value motion and alter this technique accordingly.

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The right way to set up Momentum Up-Down Bars Foreign exchange Buying and selling Technique?

Obtain Momentum Up-Down Bars Foreign exchange Buying and selling Technique.zip
*Copy mq4 and ex4 information to your Metatrader Listing / specialists / indicators /
Copy tpl file (Template) to your Metatrader Listing / templates /
Begin or restart your Metatrader Consumer
Choose Chart and Timeframe the place you need to take a look at your foreign exchange technique
Proper click on in your buying and selling chart and hover on “Template”
Transfer proper to pick out Momentum Up-Down Bars Foreign exchange Buying and selling Technique
You will notice Momentum Up-Down Bars Foreign exchange Buying and selling Technique is obtainable in your Chart

*Notice: Not all foreign exchange methods include mq4/ex4 information. Some templates are already built-in with the MT4 Indicators from the MetaTrader Platform.

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