160# SFI Trading Strategy - Trend and Wavetrend Oscillator

The SFI Trading Strategy is a trend-following and momentum-based system.

It combines directional bias from a channel of moving averages with precise buy/sell signals from the SFI indicator and confirmation

from the WaveTrend Oscillator.

Setup

Platform: MetaTrader 4 (MT4)

Time Frames: M30, H1, H4

Pairs: All major and minor forex pairs

MT4 Indicators Used

SFI Indicator (default settings) – Generates BUY/SELL arrows.

Channel Moving Averages:

100-period Moving Average (High)

100-period Moving Average (Low)

WaveTrend Oscillator – Confirms momentum strength and exhaustion.

Trading Rules

Buy

Trend Filter: Price is above the MA Channel (both MA 100 High and Low).

SFI Buy Signal: A green upward arrow appears.

WaveTrend Confirmation:

Green line crosses above red line from below.

Oscillator value rises or stays above mid-level (typically 0 or 50).

Histogram bars turn positive or grow in size.

Entry: At the close of the signal candle (after the green arrow).

Exit

Opposite SFI sell signal (red arrow).

WaveTrend crosses down or shows divergence.

Take-profit at previous high/resistance.

Or risk-reward ratio of at least 1:1 to 1:1.2

Sell

Trend Filter: Price is below the MA Channel (both MA 100 High and Low).

SFI Sell Signal: A red downward arrow appears.

WaveTrend Confirmation:

Green line crosses below red line from above.

Oscillator value drops or stays below mid-level.

Histogram bars turn negative or grow in size downward.

Entry: At the close of the signal candle (after the red arrow).

Exit:

Opposite SFI buy signal (green arrow).

WaveTrend crosses up or shows divergence.

Take-profit at previous low/support.

Or risk-reward ratio of at least 1:1 to 1:1.2

Important Notes

Trade only in the direction of the main trend filtered by the moving average channel.

Avoid trading in sideways markets – when price is within the MA channel and indicators show no clear direction.

Multiple time frame analysis is recommended. E.g., use H4 for trend bias, H1 for entries.

Conclusion

The SFI Trading Strategy provides a structured approach to trend trading using a confluence

of moving averages, momentum confirmation, and algorithmic entry signals. When applied with discipline and sound risk management,

it can offer high-probability setups across various forex pairs and time frames.