The Spectrum Forex Trading System represents a trend-following day trading strategy for MT4. It combines dynamic trendlines and smoothed moving averages with multiple trend oscillators for determining potential buy-sell signals.
Technically, Spectrum Forex Trading System works better on shorter timeframes and perfectly suits scalping or day trading. While backtesting, we’ve found the indicator works best in between 5-minute to 30-minute charts.
The Spectrum Forex Trading System comprises moving average crossovers and Buy Sell Magic, ensuring the signals are perfectly aligned within the current market trend. Moreover, it applies a triple trend filtering system so traders can precisely assess the current trend condition.
Spectrum Forex Trading System Explanation
The 11 MA(red) and the 21 MA(white) generate crossover trend signals. These moving averages are technically smoothed and work as dynamic support/resistance levels.
After getting a trend confirmation, use the Buy Sell Magic arrow signal to make your primary trading decision. Besides, the Pivot Points Multi-Timeframes indicator plots horizontal lines showing key support resistance levels of the price.
Before confirming an order, verify the signal using the RSI Filter, RBCI Hist, and Solar Wind trend oscillators. These indicators plot blue and red bars, providing buy-sell confirmations and useful trend information. Additionally, you can decide on a trade exit whenever the Solar Wind signals an opposite trend to your entry.
Spectrum Forex Trading System: Buy Conditions
The 11 MA moves above the 21 MA
Buy-Sell Magic plots a green arrow
The price breaks above the immediate pivot resistance
RSI Filter bars turn blue
RBCI hist and Solar Wind plots blue bars, showing positive values
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.
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.
