Strategy American Day Line Trading System For MT4

Strategy American Day Line Trading System For MT4

The Strategy American Day Line Trading System For MT4 is based on moving average by default, making it a trend following system. However, this trading system is unique compared to other trends following moving averages based trading methodologies. For one, the American Day Line Trading Strategy applies to only the United States trading session. It also subscribes to particular dollar-based currency pairs only, USDJPY, EURUSD, AUDUSD, and GBPUSD. 

Why is the American Day Line Strategy unique? Trading systems based on moving averages, and are trend following, make use of supports and resistance levels. All the trading assets in one way or another respect and adhere to the support and resistance rules, at this price zones, prices will either breakthrough or bounce off. These trading systems, therefore, apply to all trading assets and are tradable on any trading session. The fact that this particular system, American Day Line, is an exemption to these rules is the reason why it is such as mystery. 

If it is an exemption system, is it profitable? Our crack at it shows that following the trading rules to the tee as well as taking only the perfect trade setups on a consistent base leads to profitability.


FREE Strategy American Day Line Trading System

Download the FREE Strategy American Day Line Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!



THE Strategy American Day Line Trading System For MT4 INDICATORS




Operating on a white background, the American Day Line Forex Trading Strategy enhances the contrast between its chosen background and the colour coded indicators. This ensures trading signals are distinctly identifiable. This unique trend following forex trading methodology employs the use of two trading indicators, a default in the MT4 platform. To understand why the system is so unique, we dive into the execution and application of these trading indicators.


Moving Average


Moving averages are virtuous to traders in giving insights into support and resistance levels. All moving average types play this role quite magnificently. This is in addition to their role of showing the trend direction. However, the different approaches to calculating the moving average determine how they give insights into the trend as well as the price resistance and support zones.

For the American Day Line Strategy, the linear weighted moving average comes into play. This moving average assigns weights to prices with the most recent prices having a greater eight than their preceding counterparts, the most recent price has the greatest weight, and each preceding price has a progressively lower weight, linearly. This moving average has less lag to price reaction as compared to both the exponential moving average and the simple moving average.

Since this system trades on H1, the period in use for this linear weighted moving average is 5. This helps track price changes more closely. When the prices are above the moving average and its climbing, the bulls have the market by the horns. Suppose prices are below the linear weighted moving average and it is on a dive, the bears are in control of the market. Prices testing the moving average while in active positions signals for an exit in that particular position.


Trend Magic Indicator


This is a widely used indicator in trend identification and analysis of trend volatility, almost as common as the use of moving averages in trend identification. This is due to its simplicity to interpret and its effectiveness in carrying out its duties.

Trend magic indicator combines the best of both worlds of the commodity channel index indicator and the average true range indicator. Much like the moving averages, the positioning of the prices in relation to its plotting gives insight into the prevailing market conditions, price candlesticks closing above the trend magic indicator point to a bullish trend. In contrast, close of price candlesticks below this indicator signals a bearish market. In addition to the aforementioned, the trend magic indicator is colour coded to confirm the current market trend visually, red colour for bearish market and to go short in the market and blue colour for a bullish market and going long in the markets.

In the American day line strategy, the trend magic indicator helps filter out the perfect entry and exit signals. This is due to the false positives associated with the use of the linear weighted average and its reduced lag that reacts to market noise.

The settings in use here are a commodity channel index of period 50 and an average true range of period 5.



THE Strategy American Day Line Trading System For MT4 - SETUPS


Buy Setup




The chart above is a perfect example of this trading system in action. The trading methodology entry parameters are:


  • Trade on the United States Session. The chart division, upright dotted lines, is into the appropriate trading session and daily price bars.


  • On the close of the 14-hour candlestick, where the linear weighted moving average is plotted draw horizontal line.

  • Wait for the next price candlestick to close, the 15th-hour price candlestick.


At this point, we looked at the indicators, and the remaining entry parameters showed the market as ripe for a bullish position;


  • The 15th-hour price bar had closed above the linear weighted moving average.

  • The price candlesticks had closed above the Trend Magic Indicator signaling for a bullish move. It validates the signal by being bleu in colour.


With all of the above parameters present, take a bullish position per your money management rules.


Sell Setup




The chart above is yet another perfect example of the American Day Line trading Strategy in action. The trading methodology entry parameters are:


  • We still trade based on the United States Session, and the chart is divided appropriately.

  • On the close of the 14-hour candlestick, where the linear weighted moving average is plotted draw horizontal line.

  • Wait for the close of the 15th-hour price candlestick.


At this point, we looked at the indicators, and the remaining entry parameters showed the market as ripe for a bearish price rally;


  • The 15th-hour price bar closed below the linear weighted moving average.

  • The prices were below the Trend Magic Indicator, and red in colour, signaling for a bearish move.


With all of the above parameters present, take a bullish position following your money management rules.


Stop Loss and Take Profit Levels


This forex trading system has a predetermined stop loss and take profit levels.


  • 60 pips take profit level.

  • A 70 pips Stop Loss.


Prices closing above or below the moving average also signal for bearish and bullish position exit, respectively.

Download the complete system description and the files here:

FREE Strategy American Day Line Trading System

Download the FREE Strategy American Day Line Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

My Recommended MT4/MT5 Broker

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.