249# Dual Trend Confluency Trading Strategy MT4

Janus Trader 2025

The Dual Trend Confluence Strategy is a short-term day trading system designed for volatile Forex pairs (e.g., GBPJPY, EURJPY, GBPUSD, XAUUSD).
It operates on the M5 and M15 timeframes and combines multi-timeframe trend envelopes with momentum oscillators to identify high-probability reversal and continuation setups.

The concept is simple:

Two trend indicators on the main chart must agree on direction.
At least one momentum indicator below the chart must confirm the same bias.
Only when this confluence occurs is a trading signal generated.

Indicators Used

On the main chart

Trend Envelopes (MTF) – two instances:
- One calculated from the next higher timeframe (e.g., M15 if trading on M5).
  
  The second calculated from two timeframes higher (e.g., M30 if trading on M5).
  When both are aligned, the trend bias is confirmed.
Falcon Zone / ADR Levels – to visualize intraday support and resistance.
Daily Open Line – helps identify whether the price is trading above (bullish) or below (bearish) the daily bias.

In the sub-windows

MARSI CD or Ehlers Fisher Transform – measures momentum strength and exhaustion.
OBOSS (Overbought/Oversold Oscillator) – confirms the exhaustion or continuation phase.

Dual Trend Confluency Trading Strategy MT4

Entry Conditions

Buy Setup

Trend Confluence
- Both Trend Envelopes (1TF higher and 2TF higher) turn bullish (price above both lines, colors aligned up).
Momentum Confirmation
- At least one momentum indicator (MARSI CD or OBOSS) turns green or crosses upward from the oversold area.
Optional Confluence
- A blue or green diamond appears (TrendEnvelopes-alert or Falcon Zone signal).
  
  Price bounces from a blue demand zone or below the 25–50% ADR retracement line.
Trigger
- Enter on the next candle after all confirmations appear.

Sell Setup

Trend Confluence
- Both Trend Envelopes (1TF higher and 2TF higher) turn bearish (price below both lines, colors aligned down).
Momentum Confirmation
- At least one momentum indicator (MARSI CD or OBOSS) turns red or crosses downward from the overbought area.
Optional Confluence
- A pink or red diamond appears (TrendEnvelopes-alert or Falcon Zone signal).
  
  Price rejects from a yellow or red supply zone or above the 50–75% ADR retracement line.
Trigger
- Enter on the next candle after all confirmations appear.

Exit Rules

Take Profit
- Target the next ADR level (25%, 50%, or 100%) or the next opposite zone (support/resistance).
  
  Alternatively, use a fixed reward-to-risk ratio (e.g., 1.5:1 or 2:1).
Stop Loss
- Place below the last swing low for buys or above the last swing high for sells.
Early Exit
- If the lower momentum indicator changes color or crosses against your position before TP is reached, close 50% or the entire trade.

Additional Tips

Avoid trading mid-ADR ranges (low volatility periods).

Focus on London and New York sessions when volatility peaks.

Use pairs with high ADR (GBPJPY, GBPUSD, EURJPY, XAUUSD).

Do not take trades when the two envelopes are flat or overlapping.

Filter fake signals using price action or round number zones (e.g., 150.000, 151.000).