10# Trend Catching
Submit by Forexstrategiesresources
How to setup your
1. Compile the BBANDS indicator place it in your experts/indicator folder
2. Use the template and place in in the metatrader/templates folder
3. Apply the template on your chart.
Since the system uses a lot of moving averages, placing them manually can detailing them here can be confusing, so using the template provided here is the best solution. You can always study the setup from your charts directly and investigate into the moving averages and their individidual values. The setup is using 10 moving averages in all.
When to BUY
When the BBANDS indicator turns BLUE
When the Blue moving averages cross and go upwards. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the UP move.
When the Blue Moving averages are above the WHITE CHANNEL
When the MACD histogram is ABOVE the ZERO line and also ABOVE the RED line.
These are the steps that you need to follow closely to identify a BUY setup. If
you stick to these rules, you will end up with green pips most of the times. The major problem occurs when you try to burn one of the rules.
The Takeprofit and Stoploss is at your own discretion. These values depends on the charts on which you are working on. For example on the H1 chart, you should aim at a lower TP( e.g 60pips) and on the H4, you can aim at a higher TP(e.g 100pips+)
Refer to the screenshot above for the buy trading rules.
When to SELL
You open a SELL position exactly when the opposite of the Buy setup occurs which are as follows:
When the BBANDS indicator turns RED
When the Blue moving averages cross and go downwards. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the DOWN move.
When the Blue Moving averages are below the WHITE CHANNEL
When the MACD histogram is BELOW the ZERO line and also BELOW the RED line.
Refer to the screenshot above in order to get a clear idea on the SELL signal generated by this system. The same rules for the Takeprofit and Stoploss levels apply to the sell as well.
When not to trade
1. You should not be taking any trades when all these rules have not been met.
2. You should not be trading when the Blue moving averages are stuck to one another, this shows that the market is ranging and this system will not make money in ranging markets.
When to CLOSE your
Your trades should be closed automatically if you have takeprofit and stoploss in place. However, if you are available to monitor your trades, you can wait for an opposite signal to occur then you close your trade to open the opposite one. This make you catch more pips than in a fixed takeprofit setup. Trailing Stop can also be good, however it should not be too tight as you will be out of the good trades too soon.
Share your opinion, can help everyone to understand the forex strategy.