Precise signals for trading Strategy For MT4
The Precise signals for trading Strategy For MT4 is a strong strategy designed to take trades with the momentum. Any momentum-based trading strategy tends to depend on the moving average bands as they can sense the momentum based on a different period. For this system, moving average, AO, and the stochastic oscillator will be used.
People get confused when they use the moving average in the wrong order. In this template, we are going to use 3 unique moving average bands that can provide us a powerful entry point. People who are familiar with the moving average cross might get excited after loading up the template file. But remember, the AO and the stochastic indicator is equally important for this chart.
In case, the reading from the AO indicator is ignored, you will be doomed. For the better use of this trading edge, the traders need to rely on the simple mechanism of trading business. If they depend on the complex sets of rules to take the trade, it will be really hard to overcome the complicated settings.
Whenever a trader uses a new trading method, the process becomes inconvenient for the traders as they don’t have any strong skills to deal with market dynamics. But to ameliorate the edge, you can follow this strategic guide.
This content will deal with the detailed steps of the market that can ameliorate your trade execution accuracy and give you a better edge to win. In case you want to win most of the trades without knowing key details, investment should not be your preferred industry. Let’s see how we can take short and long order with this simplified edge.
Precise signals for trading Strategy For MT4 Long trade setup
Before you start exploring the essential steps to take the long trade, be advised, this system works perfectly well in the shorter time frame. But for the betterment of the trade, we will depend on the H1 and H4 charts only. The reason to choose this two-time frame is price stability. The price movement gives much more accurate data for the intraday day traders in these two-time frame.
If you can take the trades in these two-time frames, you should be seeing much better results. The first point is to notice the bullish cross in the MA. The moving averages with period 2 and 6 should be over the blue moving average that has period 30. The reason to choose the 30-period moving average is synchronicity. As the bullish cross takes place in the MAs, it’s time to look at the AO reading. The histogram bars in the AO should be imprinted on the negative face of the RF line.
The formation of the AO bars on the negative side will give us the indication that the price will go higher. But we must take the confirmation from the stochastic indicator.
If the stochastic indicator is in the oversold territory, we can open our long. When the long trade is opened, be sure you are not taking a super high risk as it will ruin the career. For your safety, stick to the steps of this guide as the rules are derived after vigorous testing.
Precise signals for trading Strategy For MT4 Short trade setup
The short trades are taken in a very similar process. If you want to earn money by taking the short trade, you have to take a look at the overall trend. The bearish will be the first thing you should notice. The MA with period 2 and 6 should fall below the MA with 30 periods. The cross in the MA will give us the indication the price will fall short.
For the betterment of the trader, investors should be looking to sell the asset at the major resistance. After you have got the bearish cross in the moving average, it’s time to look at the position of the candles. Wait for 1 or 2 hours for the price to climb to the nearest selling zone. When the price climb to the resistance zone, the AO indicator should show a strong downward movement. That means, the histogram bars will turn to red but it will stay on the positive side.
For that of the stochastic reading, it should be above the 80 levels stating the price is ready to move lower. The traders generally get bemused as they don’t have the technical skills to deal with critical market data. But if you can take the trade with precision, it will be an easy task to see how the price is reacting to different levels.
In most cases, traders forget to earn money since they don’t know how the trades are taken with managed risk. But remember, taking the trades with appropriate risk is a very tough task and unless you can do the things in the right order, it will be causing you big trouble. For this traders have to depend on advanced money management techniques.
Trade management technique
Money management is the core foundation of any new trading method. If you want to survive as a trader, you should remember, managing the trades is the most difficult task and you can’t make the right decision without doing the proper market analysis.
It might see a hectic process for the new investors but if the investors effectively manage the trades, they can improve the skills. For each trade, the maximum risk threshold level should 2% of the balance. In case you are trading with big capital, the risk threshold should be only 1%. People don’t know how the trades are taken in the most complex situation in the market.
To earn regularly, you have to take the trades with a 1:4+ RR ratio. People who fail to maintain this RR ratio often become frustrated with the trade setups and they lose money most of the time. Though it will seem a very hard task if you do the math in the proper order, you will be able to earn a decent amount of money with high risk.
Remember, the risk exposure greatly varies from traders to traders. If you forget to manage the risk factors in an organized way, it will be hard to become a top trader in this world.
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