Free Forex Systems (MT4), Trend Following Systems

Ultimate Oscillator with Envelopes

Ultimate Oscillator with Envelopes is a trend following trading system which gives breakout trades in the favor of the major trend. This trading system gives a buy and sell signal at the beginning of the trend and traders can ride the entire trend.

Taking entry once a trend has started can be very difficult for traders. Also trading Breakout without confirmation of trend can be a non-profitable trading strategy.

This trading system removes the above two difficulties and gives a breakout entry at beginning of a trend. Let’s try to see how this system works with various examples.

Ultimate Oscillator with Envelopes Overview

Ultimate Oscillator is a banded oscillator value of which fluctuates between 0 and 100. Its calculated by combining the short-term, medium-term, and long-term momentum, and then this value is plotted on a single panel below the price.

Ultimate Oscillator with Envelopes Overview

This indicator gives better signals as compared to other oscillators which depend on a single time frame momentum calculation.

When the value of the Ultimate oscillator moves above 50 that means bulls are in control and when the value moves below 50 that means prices are in a bear trend. Further 70 and 30 levels are used in this indicator for confirmed breakout trades.

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Ultimate Oscillator with Envelopes Explanation

The second indicator of this trading system is Envelopes which plots the upper and lower band on a 45-period exponential moving average. This indicator is also trend following indicator and used as confirmation for taking the trades.

Ultimate Oscillator with Envelopes Explanation

When price moves above the envelopes and the value of the Ultimate oscillator moves above 50 traders should look for long trades’.When price moves below the envelopes and the value of the ultimate oscillator moves below 50 then traders should look for short trades in the market.

Ultimate Oscillator: Buy Conditions

Ultimate Oscillator Buy Parameters
  • Fresh Upside breakout from Envelopes.
  • The ultimate oscillator should give a breakout from 70.
  • Traders can hold the trade till the time price trades above the Envelopes.

Also Read: Exness Review – Forex Broker Reviews

Ultimate Oscillator: Sell conditions

Ultimate Oscillator Sell Parameters
  • A fresh breakdown from Envelopes.
  • The ultimate oscillator should give a breakdown from 30.
  • Traders can hold the trade till the time price trades below the Envelopes.

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which 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.