Price charts are sometimes a cluttered mess. This is very true for brand spanking new traders. Latest traders would take a look at chart and would often feel flustered not knowing find out how to make sense of what the chart is showing.
While it’s true that almost all tradeable market is a chaotic confusion of price movements and that the forex market is one of the crucial volatile and unpredictable market, there are lots of instances wherein the value chart is showing clear signals regarding what it desires to do. Traders who can read what the market is about to do are those who can consistently earn profits from the forex market.
So, how can we make sense of an otherwise confusing price chart? Latest traders may find it difficult to decipher what the market is doing on a unadorned price chart. Latest traders could make use of technical indicators to assist them see clearly what the market is doing. The appropriate combination of complementary technical indicators can mean the difference between having no clue regarding market movements and making sense of what the market might probably do. Indicators don’t give the precise answer as to what future prices could be, however it provides traders some clues.
Some indicators help traders discover trend direction. Some indicators help traders discover overbought and oversold market prices. Some indicators give traders a clue if the market is about to reverse. An excellent mixture of such indicators may help traders discover trade direction and potential trade setups.
Fast Signals
Fast Signals is a custom technical indicator which helps traders discover potential mean reversal signals based on reversals coming from extreme price points.
The Fast Signals indicator plots two dotted lines that forms a channel like structure, which might normally envelope price motion. The lower line is a blue dotted line which acts as a dynamic support. The upper line is a red dotted line which acts as a dynamic resistance line.
Price tends to push towards the extremes. This is able to cause price to cross beyond the range of the channel. The market will be considered overbought if price crosses above the upper line of the channel. The market will also be considered oversold if price crosses below the lower line of the channel.
Nevertheless, price would typically reverse towards its mean after being overbought or oversold. The Fast Signals indicator plots an arrow pointing the direction of a reversal at any time when it detects a possible mean reversal. These arrows can function an entry signal for mean reversal setups.
Stochastic Oscillator
The Stochastic Oscillator is a classic momentum technical indicator which many traders use. It detects momentum, trend and overbought or oversold price conditions.
The Stochastic Oscillator plots two lines derived from historical price movements. These lines oscillate throughout the range of 0 to 100.
Trend or momentum will be identified based on how the 2 stochastic lines overlap. Momentum is bullish if the faster line is above the slower line. Momentum is bearish if the faster line is below the slower line. Crossovers between the 2 lines are regarded as a reversal signal.
The Stochastic Oscillator range also typically has markers at level 20 and 80. These levels indicate price extremes. Stochastic lines dropping below 20 indicate a mathematically oversold market. Stochastic lines breaching above 80 indicate a mathematically overbought market. Crossovers occurring in these areas could indicate a high probability of a possible mean reversal.
Trading Strategy
Fast Signal Mean Trend Forex Trading Strategy is a mean reversal strategy which isolates trades which agree with the direction of the long-term trend.
The direction of the long-term trend is identified based the 100-period Exponential Moving Average (EMA) line. This is predicated on the placement of price motion in relation to the 100 EMA line, in addition to the slope of the 100 EMA line. Trend direction must also be visually confirmed based on the swing points of price motion. Trade setups should only be taken within the direction of the long-term trend.
The Fast Signals channel would function a marker to assist us discover overbought or oversold price candles on the value chart. Overbought and oversold prices should then be confirmed by the Stochastic Oscillator.
As price starts to revert back to its mean, the Fast Trend indicator should plot an arrow pointing the direction of the reversal. This could then be followed by the crossing over of the Stochastic Oscillator lines coming from an overbought or oversold level.
Indicators:
- Fastsignals
- 100 EMA
- Stochastic Oscillator
Preferred Time Frames: 30-minute, 1-hour, 4-hour and every day charts
Currency Pairs: FX majors, minors and crosses
Trading Sessions: Tokyo, London and Latest York sessions
Buy Trade Setup
Entry
- Price motion ought to be above the 100 EMA line.
- Price motion ought to be in an uptrend.
- The 100 EMA line should slope up.
- The Fast Signals channel should slope up.
- Price should pull back below the dotted blue line.
- The Stochastic Oscillator lines should drop below 20.
- The Fast Signals indicator should plot an arrow pointing up.
- Enter a buy order as soon because the faster line of the Stochastic Oscillator crosses above the slower line.
Stop Loss
- Set the stop loss on the support below the entry candle.
Exit
- Close the trade as soon because the Fast Signals indicator plots an arrow pointing down.
Sell Trade Setup
Entry
- Price motion ought to be below the 100 EMA line.
- Price motion ought to be in a downtrend.
- The 100 EMA line should slope down.
- The Fast Signals channel should slope down.
- Price should pull back above the dotted red line.
- The Stochastic Oscillator lines should breach above 80.
- The Fast Signals indicator should plot an arrow pointing down.
- Enter a sell order as soon because the faster line of the Stochastic Oscillator crosses below the slower line.
Stop Loss
- Set the stop loss on the resistance above the entry candle.
Exit
- Close the trade as soon because the Fast Signals indicator plots an arrow pointing up.
Conclusion
This strategy is mean reversal strategy.
Although this strategy is just not perfect, it does produce trade setups with an honest combination of fine win rates and risk-reward ratios.
This strategy has the potential to provide consistent profits when utilized in the fitting market condition.
Forex Trading Strategies Installation Instructions
Fast Signal Mean Trend Forex Trading Strategy is a mix of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to remodel the accrued history data and trading signals.
Fast Signal Mean Trend Forex Trading Strategy provides a possibility to detect various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
Really useful Forex MetaTrader 4 Trading Platform
- Free $50 To Start Trading Immediately! (Withdrawable Profit)
- Deposit Bonus as much as $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The 12 months
>> Claim Your $50 Bonus Here <<
Click Here for Step-By-Step XM Broker Account Opening Guide
install Fast Signal Mean Trend Forex Trading Strategy?
- Download Fast Signal Mean Trend Forex Trading Strategy.zip
- *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you must test your forex strategy
- Right click in your trading chart and hover on “Template”
- Move right to pick Fast Signal Mean Trend Forex Trading Strategy
- You will notice Fast Signal Mean Trend Forex Trading Strategy is obtainable in your Chart
*Note: Not all forex strategies include mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download:
Get Download Access