Schaff Cycle Forex Trend Following Strategy For MT4
The Schaff Cycle Forex Trend Following Strategy For MT4 is to be used mainly on the 15-minute time frame however you can also use all the higher time frames beyond the 15-minute charts. You are welcome to deploy this strategy on all currency pairs in the markets.
In this system, you will find a Schaff Trend Cycle indicator, an EMA with a period of 100, and then lastly there is a Stochastic indicator. All these indicators hold important roles in the underlying operation of this system of which all the rules are built upon. There are a few rules for each buy and sell scenario - these rules shall assist you in identifying and entering into proper and probable buy and sell trades. So if you want to go long - you need to wait for the 100-period EMA to point in an upward trajectory.
The Stochastic indicator should also be facing up relative to the cross it initiates preferably from an oversold area. Thirdly, the Schaff Trend Cycle indicator must travel downward into the oversold zone which is beyond the 10 level, and then it has to come back up. Once these three conditions have come fully into play then you may proceed to open a long position.
Your stop loss will go 10 pips under the most notable support level. Terminate the trade as soon as the Schaff Trend Cycle goes beyond the 90 level and then crosses back down again.
For a suitable short trade - you have to wait for the 100-period EMA to point in a downward direction. The Stochastic indicator should also be facing down relative to the cross it initiates preferably from an overbought region. Thirdly, the Schaff Trend Cycle indicator must travel upward into the overbought zone which is beyond the 90 level, and then it has to come back down. Once these three requirements have been met then you may proceed by opening a short position.
Your stop loss will be ten pips above a notable resistance level. Close the trade as soon as the Schaff Trend Cycle goes below and beyond the 10 level and then crosses back up again.
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