Trend Following Systems, Free Forex Systems (MT4)

Light Forex System

Light Forex System is an example of how to build a profitable Forex trading strategy by using some basic but best Forex indicators.

It is a trend-based Forex trading system that signals both the entry and exit of the market with fewer lagging problems. For its simplicity of use and easy chart reading, it is especially admired by newbie trend following Forex traders.

Light Forex System adjusts fine with all Forex currency pairs and fits well with any sort of timeframe chart. All you need to do is to follow its trading rules with proper discipline.

Light Forex System Overview

Once you are done with the installation of the Light Forex System at your Forex MT4 platform, your trading chart will appear as the following image:

Light Forex System Overview
Time FrameCurrency PirsIndicator FactorsRatings
AnyAny49.8/10

Light Forex System Anatomy

Light Forex System Anatomy
  • 28 SMA Set: This 28-day period Simple Moving Average set works as a trend decider. For a bullish trend, the price must close and hold its position above the SMA set level. On the other hand, price closing and holding below the SMA set level signals the bearish trend.
  • RSI: One of the best momentum indicators around the market. Its value above 50 signals bullish momentum and indicates bearish momentum whenever the value turns below 50. RSI at 70 signals the overbought condition and at 30 signals the oversold of condition respectively.
  • BBSqueeze: One of the very effective Forex trend indicators around the online trading world. Its bars turn green with positive value signals the bullish trend. On the other hand, its bars turn red carrying a negative value indicating the trend as bearish.
  • MACD: A widely popular and useful Forex momentum detector. MACD value above its zero level indicates the bullish momentum and turns below zero level to signal the bearish momentum of the market.

Light Forex System: Buy Parameters

Light Forex System Buy Parameters
  • Price closes above the 28 SMA Set level and forms a bullish candle
  • RSI value rises above 50
  • Both BBSqueeze and MACD represent the positive value
  • Buy triggers whenever the above conditions are met
  • Set stop-loss limit below the SMA Set level
  • Exit long/take profit whenever both RSI and BBSqueeze turn negative

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Light Forex System: Sell Parameters

Light Forex System Sell Parameters
  • Price closes below the 28 SMA Set level and forms a bearish candle
  • RSI value moves below 50
  • Both BBSqueeze and MACD represent the negative value
  • Sell triggers whenever the above conditions are met
  • Set stop-loss limit above the SMA Set level
  • Exit short/take profit whenever both RSI and BBSqueeze turn positive
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I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.