Day Trade Forex Trend Following Strategy has been developed to assist trend-based intraday or day traders to carry out their daily trading task with consistent success. Besides, detecting the forex trend, it also signals the overbought and oversold condition of the market so that traders can be prepared in advance to catch the upcoming trend from the right place.
Day Trade Forex Trend Following Strategy works great at M5 to D1 timeframe charts as an intraday forex trading system. Moreover, this strategy can be applied to trade any forex currency pair available at the market.
Day Trade Forex Trend Following Strategy Overview
After the installation of Day Trade Forex Trend Following Strategy at your forex MT4 platform, your trading chart will appear like the following image:
|M5 to D1
Day Trade Forex Trend Following Strategy Anatomy
● EMA Set: This section of indicators has been combined with Exponential Moving Averages using from 6 to 21-day period of parameters. Price closes above the EMA Set cloud indicate the trend as bullish. For a bearish trend confirmation, the price must be closing below the EMA levels.
● RSI: One of the most popular forex momentum indicators around the market which stands as Relative Strength Index. RSI above 70 signals the overbought condition and its value reaches near 30 represents the oversold condition of the market. RSI value above 50 indicates the bullish strength and below 50 as the bearish strength of the respective market.
● MACD: MACD represents the trend strength level of the current market. It is also used as a filter of trend signals from other indicators of the strategy. MACD is positive means the trend is bullish and a negative value represents the bearish condition of the market trend.
Day Trade Forex Trend Following Strategy: Buy Parameters
● Price closes above the EMA Set cloud
● RSI moves above 50
● MACD turns positive
● But triggers when above conditions are met
● Set stop loss below the EMA Set level
● Exit long/take profit whenever RSI moves below its 50 level with MACD turned into negative at the same time.
Day Trade Forex Trend Following Strategy: Sell Parameters
● Price closes below the EMA Set cloud
● RSI moves below 50
● MACD turns negative
● Sell triggers when the above conditions are met
● Set stop loss above the EMA Set level
● Exit short/take profit whenever RSI moves above its 50 level with MACD turned into positive at the same time.
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