Forex Mutant Advanced Trading System For MT4
The Forex Mutant Advanced Trading System For MT4 is a trend following forex trading system that employs supports and resistance levels to carry an advantage over other trading strategies. Basing its structure on supports and resistance makes it applicable to all forex trading assets and applies to all timeframes. However, entry and exit are best sought on M30 and H1 timeframes.
This trading methodology applies to scalping, but our advice is to familiarize with it on the longer timeframes first before using it to quench the trigger happy thirst.
THE ADVANCED Forex Mutant Advanced Trading System For MT4 INDICATORS
The advanced forex mutant strategy coding allows its indicators’ arrangement to be easy on the eye. It is also a simple layout facilitating easy identification of trading signals and their corresponding indicator validation points.
Just like the name suggests, plotting of trend lines gives insights on the prevailing price trend. To draw a bullish trend line, consecutive higher lows form the base for plotting this line. On the other hand, lower highs form the trend line base for a bearish trend line.
For this particular trading system, traders can choose to draw their own trend lines or if not yet knowledgeable on the drawing of trend lines, use the system generated trend line to identify the prevailing market trend direction, the gold diagonal line.
Most trends following forex trading strategies utilize the powerful tool that is supports and resistance. The advanced forex mutant system is no different. Support and resistance level mapping here utilizes the camarilla concept, named Target indicator for this system. This mathematical formula uses the previous day’s high, low, and closing prices as well as the Fibonacci retracement levels in coming up with the support and resistance levels.
Support and resistance levels are not absolute numbers. To put this into perspective, we look at how they form. A support level forms when the market demand exceeds the prevailing market supply causing buying pressure and hence an increase in prices of that asset. Resistance level forms when the supply in the market overwhelms the current market demand resulting in selling pressure, market prices reduce due to the oversupply.
There are two types of traders around the support and resistance levels, the patient risk-takers and the trigger-happy panicked trader. The panicked trader places trades when prices are within the vicinity of the support or resistance level fearing to miss the eventual move. If this type of traders forms the majority of the trading block, prices retrace without actually getting to the mapped out level. Suppose the patient risk-takers are in control of the market, their trades are set off the support and resistance level slightly to maximize fully on the market movement. In such a scenario, there is a testing of the set levels with some candles closing below the mapped out levels, but it holds.
The above trader types are the reason supports, and resistance levels are price zones and not particular price points.
Since the camarilla concept is in use, look out for S3, S4 and R3, R4; consider S3 and R3 as retracement levels while S4 and R4 act as breakout levels.
In addition to the above role, the levels form a base on which the stop loss and take profit levels are set.
Trend Bars Indicator
This momentum oscillator confirms the trend as well as the market momentum. The colour coding easily identifies the prevailing market trend;
- Lime-green histogram coloured bars for a bearish market.
- Blue coloured histogram bars to signify a bullish market.
- Aqua up and down arrows to signal when to buy or sell, respectively.
The lengths of the bars attest to the trend momentum; short bars for low momentum and long bars for high momentum.
Different trading regions move the forex trading assets in differing ways. At the bottom right corner of the main chart, you get a market watch that displays the time relevant to the current trading region in operation.
Located at the top right corner of the main chart, this indicator provides traders with necessary market information at a glance; average daily movement, the spread, the time to the next candlestick, the price high and low.
ADVANCED Forex Mutant Advanced Trading System For MT4 TRADING SETUPS
The chart above is a perfect example of the magic possible with the forex mutant advanced trading system. Following the system trading rules the following conditions come to fulfilment triggering us to go long;
- An upward-facing aqua coloured arrow presents itself on the trend bar indicator which has blue coloured histogram bars.
- There is a bullish gold trend line.
- Prices bounce off the S3 support level.
- We have an aqua signal on the main chart that corresponds to a blue histogram bar on the trend bar indicator. The aqua signal is below the prices signaling a buy.
The rule is to enter the trade on high of the signal candlestick being broken. This trade garnered 148 pips with a stop loss of 26 pips, a risk to reward ratio of approximately 1:5.
The chart above is yet another example of the magic possible with the forex mutant advanced trading system. Following the system trading rules the following conditions come to fulfilment for a perfect entry setup going short;
- A downward-facing aqua coloured arrow presents itself on the trend bar indicator which has green coloured histogram bars.
- There is a bearish gold trend line.
- Prices bounce off the R3 support level.
- We have an aqua signal on the main chart that corresponds to a green coloured histogram bar on the trend bar indicator. The aqua signal is above the prices signaling a sell.
The rule is to enter the trade on low of the signal candlestick being broken. This trade garnered 127 pips with a stop loss of 45 pips, a risk to reward ratio of approximately 1:3 if the take profit level bases were the counter signal instead of a minor resistance or the pivot point, the risk to reward ratio increases.
Any aqua markings appearing on the chart that corresponds to the trend bar showing the continuation of the position held applies as a second entry point. Remember to always trade with the trend exponentially increasing the win rate of the Forex Mutant Advanced trading System.
Download the complete system description and the files here: