47# Trend Detector Trading Strategy

Submit by Just Edd  10/2024

Trend Detector is trend action strategy.

Time Frame: 30-minute and 60-minute charts (best 60 min).
Currency Pairs: Any (recommended: major pairs for liquidity)
Platform: MetaTrader 4 (MT4)

Time Frame: 30-minute and 60-minute charts
Currency Pairs: Any (recommended: major pairs for liquidity)
Platform: MetaTrader 4 (MT4)

Indicators Used

• ArrZZ (default settings)

• DJPVT

• Bank Levels

• Symbol Changer

• Super Trend Averages (default settings)

• Currency Strength Alerts

• MT4 Breakout Box (default settings)

• Daily Percentage Change

• Breakout Arrow (default settings)

Sub-windows:

• XBD4 (default settings)

• Genesis Matrix (default settings)

Objective of the System:

The Trend Detector system aims to generate strong trend signals and identify high-probability trading opportunities by utilizing a combination of indicators, price levels, and currency strength data. The system provides clear buy and sell signals by confirming a confluence of indicator readings and key price level breaks.

Entry Criteria (for Buy and Sell Signals)

1. Confirm Trend Direction:

   • All main indicators (ArrZZ, DJPVT, Super Trend Averages, and Genesis Matrix) must align in one direction—either BUY or SELL.

     • For a BUY signal: All indicators should show a bullish trend.

     • For a SELL signal: All indicators should show a bearish trend.

2. Price Break Confirmation:

   • Price must break through both the Bank Levels and the MT4 Breakout Box in the direction of the trend (up for a buy, down for a sell).

   • Breakout Arrows provide confirmation of price movement through the breakout box, indicating momentum.

3. Currency Strength Dashboard:

   • Confirm the trade by checking the Currency Strength/Weakness Dashboard.

   • For a BUY trade: The base currency should show strength, and the quote currency should show weakness.

   • For a SELL trade: The base currency should show weakness, and the quote currency should show strength.

4. Daily Percentage Change:

   • Ensure the daily percentage change is in alignment with the trend. For example, if you are looking for a BUY signal, the daily percentage change should show positive movement.

Example Buy Setup:

1. Indicator Alignment: ArrZZ, DJPVT, Super Trend Averages, and Genesis Matrix all show a bullish trend.

2. Price Action: Price breaks through the Bank Levels and the MT4 Breakout Box upwards.

3. Currency Strength Confirmation: The base currency (e.g., EUR) is strong, while the quote currency (e.g., USD) is weak.

4. Breakout Arrow: The Breakout Arrow confirms the bullish breakout.

5. Daily Percentage Change: The daily percentage change is positive, confirming the upward momentum.

Buy Entry: Enter a long position after all indicators and levels confirm the buy setup.

Example Sell Setup:

1. Indicator Alignment: ArrZZ, DJPVT, Super Trend Averages, and Genesis Matrix all show a bearish trend.

2. Price Action: Price breaks through the Bank Levels and the MT4 Breakout Box downwards.

3. Currency Strength Confirmation: The base currency (e.g., USD) is weak, and the quote currency (e.g., JPY) is strong.

4. Breakout Arrow: The Breakout Arrow confirms the bearish breakout.

5. Daily Percentage Change: The daily percentage change is negative, supporting the downward momentum.

Sell Entry: Enter a short position once all criteria are aligned for the sell setup.

Exit Strategy:

1. Key Levels: Exit at the next major support/resistance levels shown by the Bank Levels.

2. Opposing Signals: Close the trade if the indicators start showing the opposite direction (e.g., a shift from buy signals to sell signals).

3. Manual Stop Loss and Take Profit:

   • Stop Loss: Place a stop loss below the previous low (for a buy) or above the previous high (for a sell).

   • Take Profit: Set take profit at a ratio of 1.5 to 2 times the risk or based on the nearest strong support/resistance level identified by the Bank Levels.

Risk Management:

• Position Sizing: Use 1-2% of your account balance per trade.

• Risk-to-Reward Ratio: Maintain a minimum 1:1.5 risk-to-reward ratio on all trades.

• Trailing Stop: Implement a trailing stop to lock in profits as the price moves in your favor.

Additional Notes:

• Market Conditions: This system works best in trending markets. Avoid choppy or sideways market conditions.

• Multiple Confirmations: Always wait for all indicators to align before entering a trade. Avoid jumping into a trade based on a single indicator or price level break.

Summary:

The Trend Detector trading system is designed to capture strong market trends and high-probability trades by combining a variety of technical indicators and price action tools. Key to the system is the alignment of indicators in one direction, confirmation of currency strength/weakness, and the breaking of important price levels. Following these guidelines will help you identify the best buy and sell opportunities, manage risk, and optimize trade exits.