Trend Catching Forex Trading System use 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. The setup is using 10 moving averages in all.
If you want to profit take look chart 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.
How to setup your charts
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.
Long Entry:
- The bbands indicator turns blue.
- The blue moving average must cross and go upward. 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.
- The blue moving averages are above the white channel.
- The MACD histogram is above the zero and the red line.
- The Flat Trend is green.
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 take profit and stop loss is at your own discretion. These values depend on the charts on which you are working on.
Short Entry:
- Open a SELL position exactly when the opposite of the Buy setup occurs which are as follows:
- The bbands indicator turns red.
- The blue moving average must 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.
- The blue moving averages are below the white channel.
- The MACD histogram is below the zero line and also below the red line.
- The Flat Trend is red
When not to trade:
- When all these rules were not met.
- 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.
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.
Trend catching forex trading system
The Trend Catching Forex Trading System is a technical analysis-based system that utilizes the Bollinger Bands (BBands) indicator and moving averages (MAs) to identify trends in the forex market. The system is designed to capture profitable trends and provide clear entry and exit signals.
Key Components
- BBands Indicator: The system uses the BBands indicator to identify volatility and trend direction.
- Moving Averages: Multiple MAs are employed to create a channel, which helps to confirm trend direction and provide trade signals.
- Entry Signals: The system generates buy/sell signals when the Blue MAs cross above/below the White Channel, indicating a trend change.
- Take-Profit and Stop-Loss: Automatic take-profit and stop-loss levels can be set, or traders can manually adjust them based on market conditions.
System Rules
- Do Not Trade in Ranging Markets: The system advises against trading when the Blue MAs are stuck together, indicating a ranging market.
- Exit Strategies: Trades can be closed automatically with take-profit and stop-loss in place. Alternatively, traders can wait for an opposite signal to occur and close the trade to open a new one, potentially capturing more pips.
Additional Tips
- Use a Template: The system recommends using a pre-built template to apply the MAs and BBands indicator to the chart, rather than manually placing them.
- Trailing Stop: A trailing stop can be used to adjust the stop-loss level, but it should not be too tight to avoid missing out on profitable trades.
Comparison to Other Trend-Catching Systems
The Trend Catching Forex Trading System shares similarities with Master Trend Trading, another trend-following approach. Both systems focus on identifying and capitalizing on trends in various asset classes, including stocks, futures, and forex. However, the Trend Catching System is more specific to forex trading and utilizes the BBands indicator and MAs in a unique combination.