Black King Trading System For MT4
The Black King Trading System For MT4is a trading methodology applicable to all currency pairs and on all timeframes. However, it is more ideal for the medium-term and long-term traders with entry and exit based on the 30M timeframe.
It does look a bit flowery, but it is not just peacock pruning, the trading indicators work together to give traders the perfect entry setups for profitability. All you need to do is be patient and wait for the entire collection of trading conditions fulfilment.
Black King Trading System For MT4 - THE TRADING INDICATORS
To understand and be able to execute a forex trading system for profitability successfully, you need to understand the role played by each indicator on your chart. The following is a dissection of the Black King trading System anatomy to ensure when you get round to executing it; you do so successfully resulting in account growth.
This type of charting reduces market noise by employing price averages.
The Heiken Ashi candlesticks are colour coded, green and red colour. The colour code helps in identifying the market trend; green Heiken Ashi candlestick means a bullish market while red coloured ones signal a bearish market.
Use of moving averages either to show market direction or as entry and exit signal is widespread for trend following systems such as this one.
The Black King utilizes two smoothed moving averages of periods 5; one applied to the high of the price bars and the other one to the low.
Smoothed moving averages assign weights to the price bars with the most recent prices having more impact on its charting than previous prices. This effectively reduces the market noise. The two smoothed moving averages in use here form a price channel that better points out the perfect entry points.
King 2 MA Crossover
Apart from the smoothed moving averages, the Black King Trading System utilizes a trading signal based on the exponential moving average crossover. Exponential moving averages employ price weighing exponentially effectively reducing the visual representation of price fluctuations.
The King 2 MA crossover signal uses a fast-moving average of period 4 and a slow-moving average of period 8. A crossover by the small moving average from below triggers the formation of a sky blue arrow signaling to go long. Formation of a magenta coloured arrow means the fast-moving EMA has crossed over from above and traders should short the market.
King Trend SigSig Indicator
This is the primary signal indicator for this trading system. Appears on the chart as blue and red arrows; red arrows signal a bearish entry point while blue arrows signal the bullish entry points.
Suppose the King 2MA crossover and the King Trend SigSig Indicator synch to show an entry. This is a strong indication of the signal trend having formed and having the momentum for a great price rally.
Traders Dynamic Index
These indicator duties include trend direction confirmation, trend momentum identification and market volatility mapping. To successfully play its role, it utilizes several indicators under its umbrella:
- RSI Indicator;relative strength indicator useful in showing the oversold and overbought areas. Also applicable in trend confirmation. Is green in colour for this system.
- Volatility bands;an upper and lower band coloured blue. The level of market volatility depends on their level of divergence. The more the divergence, the more volatile the market is.
- Market Base Line;this acts as the base level for the RSI indicators and is coloured yellow. The RSI crossover on the market baseline, MBS, gives insight into the prevailing market trend.
- Trade Signal Line; assigned the task of showing trend momentum.Crosses over the MBS show who is in control of the market: cross from below bulls have the momentum while across from above signal bearish momentum.
This stochastic oscillator is mostly used in combination with the RSI. Instead of the normal two moving averages that oscillate around the 50 level, this trading system uses three moving averages with the levels 32/50/68.
The 32 and 38 levels identify the oversold and overbought areas, respectively. The 50 level plays its traditional role of trend confirmation; cross from below confirming a bullish trend while a cross from above signals a bearish trend.
FX Trend V2 Indicator
This momentum oscillator shows the prevailing market condition. It confirms the trend direction, and whether to go short or long in the market;
- Red histogram bars confirm bearish market conditions and a short position entry.
- Deep Sky Blue histogram bars validate a bullish market and long entry position.
Black King Trading System For MT4 - TRADE SETUP
The chart above is what you would call a perfect long entry setup;
- The King Trend SigSig blue arrow forms informing to go long.
- The King 2 MA crossover signal appears on close the next candlestick to the king trend signal candlestick validating the signal to go long.
- The smoothed moving average channel trends up, and prices close above it.
- The signal candlesticks are all green in colour.
- RSI Indicator crosses the Trade Signal Line and the MBS from below.
- The Blue Coloured QQE moving averages crosses the rest from below.
- The FX Trend V2 Indicator is a clear blue sky, deep sky blue histogram bars.
This position made a bullish price rally of 175 pips.
The chart above is what you would call a great short entry setup;
- The King 2 MA crossover signal, magenta colored, appears signaling to short the market.
- The smoothed moving average channel trends down and prices close below it.
- The signal candlestick is red in colour.
- RSI Indicator crosses the Trade Signal Line and the MBS from above.
- The Blue Coloured QQE moving averages crosses the rest from above.
- The FX Trend V2 Indicator is ablaze with red coloured histogram bars.
This is not a great entry setup because the King Trend SigSig red arrow signaling to go short in the market is nowhere to be seen. However, his position went ahead to make a bearish price rally of 100 pips.
NB: the black king trading system calculates the stop loss level automatically. All you need to do check the numbers on the top left corner of the chart to set your stop loss. The counter signal acts as the ideal take profit level.
Download the complete system description and the files here: