Strong Forex System with Fibocal For MT4
To begin off let us start with a question, why get into the forex markets? Most of the traders in the forex markets first had the delusion of grandeur, quick effortless money. After a taste of the actual brutality of the forex markets workings, you realize that the FX industry is unforgiving, dynamic, and it takes a hell lot for you to be a winner. To start separating oneself from the losing herd in the forex markets, this makes up the majority of the active traders, the prerequisites below must be in place;
- A solid trading plan,
- A robust trading methodology
- Robust money management rules.
Assuming that you have been in the markets long enough, if not you are lucky to be reading this, the first and last conditions above have already been established. We cover the second condition, a robust trading methodology, by dissecting The Strong Fibocal Trading System for MT4.
The Strong Fibocal Trading System is a trend following forex trading methodology whose design looks at not only the price action of an asset but the momentum behind the prevailing market action. This combination helps filter out market noise exponentially reducing the drawdown coupled with false-positive trades. Being a trend follower, this forex trading system then subscribes to all trading assets. However, the ideal trading timeframe is H1 with the adventurous and experienced looking for entries in the M15 timeframe.
THE STRONG FIBOCAL TRADING SYSTEM INDICATORS
The Strong Fibocal Forex Trading System is ideal for both the novice and experienced traders because by design it seeks to:
- Make trading the forex markets easy yet profitable,
- Ease of use when interpreting forex signals,
- A near-perfect forex trading system for account growth through consistent profits.
To achieve the above deliverables, this forex trading system uses a mix of well-known trading indicators but smartly coded to achieve their goals without clutter on the charts.
Moving averages are world-famous for their ability to identify an already existing trend. The bane of this trading indicator has always been its repaint and lagging effect. Since this system seeks entries in an already established trend, the repaint effect is a non-issue. However, the lag effect is quite an issue because a greater lag gives signals late, which might result in very marginal price movements on trade entry. To overcome this handicap, the Strong Fibocal System employs the services of exponential moving averages; assign different weights to prices based on their position, the most recent prices have more impact than historical ones.
The EMAs in use are of periods 8 and 21 with different colours, red and black, respectively.
When prices actively trade above the moving averages the market is bull, the inverse is true, prices actively trading below the EMAs indicate a bearish market.
Our entry is on the cross of the fast-moving EMA8 over the slow-moving EMA21 subject to confirmation from the other trading indicators.
To help in trend identification, Strong Fibocal Trading System also employs the use of Heiken Ashi candlesticks. Heiken Ashi candles use price average in their plotting resulting in smoother trends visually. Here, red candles signify a bearish market while blue Heiken candles point to a bullish market.
Strong System ADX Indicator
This trading indicator is located at the left top corner of the trading chart and gives the final report of the signals generated by all the trading indicators. In addition to the aforementioned, the ADX and RSI indicator incorporation further validates the signals on the chart, green with up on all three means a strong bullish market while red with a down statement indicates a strong bearish market.
Supports and Resistance Levels
Resistance and support levels are universal to all the trading assets and are like anything set in stone, their working doesn’t change. Resistance level forms when the supply of an asset exceeds the prevailing demand resulting in a fall in prices. The highest price reached before the price decline is a price resistance level. A support level forms when the prevailing market demand exceeds the market supply resulting in increased asset prices. The lowest price attained by an asset before the rise in prices fuelled by increased demand is a support level.
This forex trading system employs support and resistance levels as stop-loss and take-profit levels. The previous day’s pivot level also helps identify if the current day is bullish or bearish, prices trading above the green zone indicate a bullish market while active trading below the red zone points to a bearish market.
In full known as the moving average convergence divergence indicator. Employing the use of three MACDs, the strong Fibocal Forex Trading System does not leave anything to chance. The MACDs here confirm the trend direction; a red zone coupled with negative aqua histograms for bearish market and blue zone coupled with positive aqua histogram bars for the bullish market.
Stabilitit Indicator Zone
This trading indicator window shows the trend direction on higher timeframes to better inform traders on what to expect. An ideal position is one aligned to the direction of all the higher timeframes.
Tying all the trading indicators above is the signal fibo indicator. This shows when to enter trades, red arrow to go short and green arrow for when to go long.
STRONG FIBOCAL SYSTEM TRADING SETUPS
First, slow-moving EMA8 is above the fast-moving EMA21.
Second, prices open and close above the EMAs.
Third, the strong ADX Indicator is green and says the market is going up.
Fourth, the MACD window is in the buy zone with positive aqua histograms.
Fifth, the Heiken Ashi candles are blue in colour.
The cherry on top, a green arrow signaling for a long position.
Use the nearest support levels as a stop loss and for take profit, wait for the counter arrow or prices to open and close below the EMAs.
First, slow-moving EMA8 is below the fast moving EMA21.
Second, prices open and close below the EMAs.
Third, the strong ADX Indicator is red and says the market is going down.
Fourth, the MACD window is in the sell zone with negative aqua histograms.
Fifth, the Heiken Ashi candles are red in colour.
Finally, there is a red arrow signaling to short the markets.
Use the nearest resistance level as a stop loss and for take profit, wait for the counter arrow or prices to open and close above the EMAs.
Download the complete system description and the files here: