Maximo Trader 2025

The Donchian Flat Reversal Strategy is a Forex reversal trading system designed for MetaTrader 4 (MT4).
It aims to capture trend exhaustion and market reversals when price reaches extreme levels and momentum becomes neutral.

This strategy combines:

• Donchian Reversal Indicator (default settings)

• Trend Direction Force (TDF) indicator (default settings)

It works best during consolidation or low-momentum phases before a new move begins.

Market & Timeframe

• Currency pairs: Any

  Timeframe: M5 or higher (M5, M15, M30 recommended)

  Market type: Ranging / transition phases (flat momentum)

Indicators (Default Settings)

1. Donchian Reversal Indicator

   • Generates arrow signals at upper/lower Donchian levels

2. Trend Direction Force (TDF)

   • Used to identify flat / neutral momentum

Market Condition (Very Important)

Trade only when the Trend Direction Force is flat, meaning:

• The TDF line is near the zero level

  No strong bullish or bearish momentum

  Market is losing directional strength

This condition filters out false reversal signals.

Trading Rules

BUY Reversal Setup

1. Trend Direction Force is flat (near zero, no strong spikes)

2. Price touches or slightly breaks the lower Donchian band

3. Donchian Reversal BUY arrow appears

4. Enter BUY at market at the close of the signal candle

Stop Loss

• Below the recent swing low

  Or a few pips below the lower Donchian band

Take Profit

• Middle Donchian level (conservative)

  Opposite Donchian band (aggressive)

  Or fixed Risk:Reward minimum 1:1.1 or 1:1,25

SELL Reversal Setup

1. Trend Direction Force is flat

2. Price touches or slightly breaks the upper Donchian band

3. Donchian Reversal SELL arrow appears

4. Enter SELL at market at the close of the signal candle

Stop Loss

• Above the recent swing high

  Or a few pips above the upper Donchian band

Take Profit

• Middle Donchian level (conservative)

  Opposite Donchian band (aggressive)

  Or fixed Risk:Reward minimum 1:1.1 or 1:1,25

Trade Management (Optional)

• Move stop loss to break-even once price reaches 50% of target

  Partial close at the middle Donchian line

  Exit early if TDF starts showing strong momentum against the trade

Strategy Logic Summary

• Donchian identifies price extremes

  Trend Direction Force confirms lack of trend

  Arrows act as precise reversal triggers

  Trades are taken against the previous move, targeting mean reversion

Best Conditions

✅ Asian session
✅ Pre-London consolidation
✅ After strong impulsive moves that lose momentum

❌ Avoid high-impact news
❌ Avoid strong trending markets (TDF strongly positive or negative)

Final Notes

This is a reversal strategy, not a trend-following system.
Patience and discipline are key — only trade when momentum is flat and Donchian arrows appear.

Submit by Nico 10/02/2012

Time Frame 4H or daily.

Currency pairs: all.

Indicators:

HMA,

Stochastic momentum

Open a deal to Buy as soon as the line of the indicator rising HMA (colored in green) and SMI indicator crosses its signal (dotted) line from the bottom up, under these conditions, the indicator forex SMI should not be in overbought condition (be higher 70). If it is currently higher than 70, then the transaction must be concluded, after it falls below this level.

Starting a safety stop-loss should be placed under a local minimum.

 When the profit of 100-150 points -stop-loss at break even.

The deal closed when the reverse lights.

For SELL - opposite conditions.