Pluton Trading System For MT4
The Pluton Trading System For MT4 has been developed as a forex day trading strategy for supporting the newbie investors in finding proper trend-following trading signals, especially during the London sessions.
Forex scalping systems usually focus on short-term trading opportunities based on the recent activities of the price-action. Sometimes, such strategies do not work because a short-term market view doesn’t give you the whole picture of the current trend strength and the sentiment of the price-movements. Also, your system needs to be well balanced with the trend, level, and trade signal indicators for ensuring your trading accuracy and stability.
This system applies Trigger Lines and Silver Trend Signals for showing the primary trend conditions. Also, it adds ALTR-Trend Signal V2.2 as a backup trend indicator for cross-checking the validity of the current market trends and the upcoming trend signals. Besides, its StepMA-Colors V2 draws the dynamic stop-levels of the market trend so that you can decide when to exit a trade following the trailing-stop method. For historical support/resistance levels, you may rely on the pivot lines of the system.
For filtering the trade setups, this system includes a 3-step trend filtering system which includes StemMA-Stoch V1, StepRSI V2, and StepSto V1. These indicators continuously deliver consistent trend signals so that you can easily decide on which trend to ride and which trade setups to be ignored to avoid regressive trading results.
Pluton Trading System For MT4 has been specially built to trade the GBP (British Pound) pairs like GBPUSD, GBPJPY, EURGBP, GBPAUD, and GBPCAD. Also, this system works better when you apply it on a 5-minute timeframe chart.
Overview of The Pluton Trading System For MT4
- ALTR-Trend Signal V2.2: This indicator applies a 20 K-Period MA and a 0.5 K-Stop factor for notifying the trend reversal signals.
An orange-color dot below the price signals for an upcoming bullish move of the price. On the other hand, a red dot above the price indicates a possible downtrend of the market in near future.
The ALTR-Trend Signal dots can be applied for both trade entry and exit purposes. For example, while being on a long-entry, you may decide to take profit whenever a red dot appears above the price level.
- StepMA-Colors V2: The StepMA is a composition of general moving averages and ATR. Here, we’ve applied a 100-period WATR (Weighted Average True Range) for plotting smoother trend support levels.
Its indicator slope turns into an aqua color and appears below the price-level as support during an uptrend market session. Whenever a StepMA support is broken, this indicator automatically plots its resistance level (blue) over the price assuming the trend as bearish.
The StepMA levels help us in establishing the trailing stops of the orders. In this way, your entry will be automatically closed whenever the price breaks out in the opposite trend direction to your trade.
For example, during long tradings, update the Sl limit according to the changes of the StepMA levels. Therefore, whenever the price breaks below the StepMA support, the MT4 platform will automatically close the order before the price starts the bearish trend move.
- Trigger Lines: This indicator appears as like moving averages but it doesn’t offer dynamic support and resistance. Instead, it only focuses on signaling the changes in the market trends.
It applies a 15-day LWMA (Linear Weighted Moving Average) and 30 R-Period MA for plotting the trend signals. Generally, in uptrend markets, the Triggerline heads upwards and its color turns yellow. When the trigger line turns red and heads downwards, consider the trend as bearish.
The trigger line also plots bullish and bearish crossovers by intersecting the StepMA levels. For a bullish crossover, the trigger line must move above the StepMA level, on the other hand, the trigger line moves below the StepMA level means it is a bearish crossover signal.
- Silver Trend Signal: This indicator plots Silver Trend Signal dots around the price bars to confirm the changes in the price trends.
The signal dot appears on the chart when the price intends to rejoin the major price trend after undergoing a correction. Before buying, the dot needs to appear below the respective signaling candle. Oppositely, for sell orders, make sure the dot appears above the candle-high.
- StepMA-Stoch V1: The StepMA Stoch V1 was built with a 10-period WATR (Kwatr factor 1.0).
Its yellow line moves above the blue line means the trend is bullish and it’s time to activate the buy-order. On the other hand, the yellow line drops below its blue line suggest to go for short-entries following the bearish market trend.
- StepRSI V2: This indicator is a composition of 14-period RSI and StepMAs. Here, we’ve applied an 8-period fast-stepMA and a 12-period slow-stepMA for exhibiting the crossovers.
If you wish to verify a buy setup, confirm that the 8-stepMA (yellow) moves above the 12-stepMA. During this period the RSI value should be near 20 suggesting the market is in an oversold condition.
Alternatively, for a sell setup verification, make sure the 8-stepMA goes below the 12-stepMA and the RSI value reaches near the 80-level (overbought).
- Step-Sto V1: The Step-Sto applies a 1.0-Kfast and a 1.2-Kslow period of Stochastics for confirming the market momentums.
When the price strongly moves in bullish momentum, the 1.0-Kfast(yellow) moves above the 1.2-Kslow(blue). Conversely, the 1.0-Kfast goes below the 1.2Kslow Stochastics for confirming the bearish momentums.
Buy Conditions of The Pluton Trading System For MT4
- The price remains above the StepMA-Colors support
- Trigger Line is yellow and moving upwards
- Silver Trend Signal and ALTR-Trend Signal plot orange dots below the price candle
- Price respecting pivot lines as support
- StepMA-Stoch, StepRSI, and Step-Sto plot bullish crossover signals
Buy Setup of The Pluton Trading System For MT4
This example represents a GBPUSD buy setup in a 5-minute chart. Initially, the price attempted to break the pivot line support at 1.3707 following a bearish trend move. Surprisingly, the price rebounded upwards after the bearish break and gets back above the pivot line support again.
During this period, the Trigger Line turns yellow, and an orange ALTR trend signal dot appears below the price candle. Also, the price breaks above the StepMA-Colors resistance, and an aqua-color support line appears below the price level. Meanwhile, you can see all the trend filters (StepMA-Stoch, StepRSI, and Step-Sto) of the system plots bullish crossover signal.
Following the above bullish trend confirmation, we trigger a GBPUSD buy-order at 1.3710. The Sl limit lies below the pivot line support at 1.3700 (10 pips). Once the price starts to reject the pivot line support at 1.3736, we exit the buy-entry at 1.3733 with a 23 pips profit.
Sell Conditions of The Pluton Trading System For MT4
- The price remains below the StepMA-Colors support
- Trigger Line is blue and moving downwards
- Silver Trend Signal and ALTR-Trend Signal plot red dots above the price candle
- Price respecting pivot lines as resistance
- StepMA-Stoch, StepRSI, and Step-Sto plot bearish crossover signals
Sell Setup of The Pluton Trading System For MT4
In this GBPJPY sell setup, the price was first denied to go up when it met the pivot line resistance at 142.31. Later, the Trigger Line turns red and starts to head downwards. Also, we can see two red dots above the price-level plotted by the Silver Trend and the ALTR-Trend Signal indicator.
After a while, StepMA-Stoch, StepRSI, and Step-Sto all plot bearish crossover at the same time confirming a short-entry. So, once the price breaks below the pivot line support at 142.04, we activate the GBPJPY sell at 141.99. The SL remains above the current pivot resistance at 142.34 (35 pips).
After the price reaches the pivot line support at 141.18, the trigger line turns yellow. Besides, the ALTR-Trend Signal plots an orange dot below the price candle. Also, the price rebounds from the respective pivot support line. So, we exit the sell order at 141.28 with a 71 pips profit.
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