Free Forex Systems (MT4), Trend Following Systems

Tom Demark Trend Following System

Tom Demark Trend Following System is a forex trading system which is completely based on trend following concept. The Tom Demark Trend Following System is a very simple forex trading system yet it is very powerful and generated above average results when back tested in past data. This trend following forex trading system is very dynamic. It can be used to trade multiple time frames and it can be used to trade almost every financial instrument available on metatrader platform. Traders should be very precise on defining the trend of the market. The point I am trying to clarify here is- you should never be trading against the prevailing trend of the market. Market should be trending in your favor at least on the timeframe you are watching.

Tom Demark Trend Following System Overview

Time Frame

Instruments Number of Indicators

Ratings

5 Min- Daily

Any instruments 3

8.5

 When you get your Tom Demark Trend Following System in your trading software, your chart will look like this:

Tom demark trend following system
Tom Demark Trend following system

 

Tom Demark Trend Following System Indicators

Main Chart Window

Indicator Window 1

Moving Average

Momentum
Moving Average

 

 A brief introduction to the indicators used in Tom Demark Trend Following System

  • Moving Averages

There are two moving averages used in this forex trading system. The golden color moving average uses 9- period moving average while the red moving average uses 30 bars to calculate its value.

  • Momentum

Momentum Indicator tells you if the bullish momentum is strong or the bearish. When this indicator is rising, it indicates increasing bullish momentum and when this indicator is falling it indicates increasing selling pressure in the market.

Tom Demark Trend Following System: Buy Parameters 

Tom Demark Trend Following System
Tom Demark Trend Following System
  • Market should be up trending.
  • Market should be bouncing from the recent support region.
  • Exchange rate should be above the both moving averages.
  • Momentum indicator should be trending higher.
  • Place your buy trade as soon as above conditions are met.
  • Set your stop loss just below the recent swing low.
  • Book your profits when the exchange rate falls below both of the moving averages.

 You Must Read: The Best Forex Trading Strategy Ever

Tom Demark Trend Following System: Sell Parameters 

Tom Demark Trend Following System
Tom Demark Trend Following System
  • Market should be down trending.
  • Market should be falling from the recent resistance region.
  • Exchange rate should be below the both moving averages.
  • Momentum indicator should be trending lower.
  • Place your sell trade as soon as above conditions are met.
  • Set your stop loss just above the recent swing high.
  • Book your profits when the exchange rate rises above both of the moving averages.
Download Tom Demark Trend Following System
Download Tom Demark Trend Following System
Share on:

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.

Leave a Comment

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.