Trend Rider V 3 Forex System For MT4
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Trend Rider V 3 Forex System for Mt4 helps a trader to find the potential long and short trade setups in any time frame. This system analyzes the price movements by using several indicators and identifies potential buying and selling zones. As a new user, you may get confused by seeing the trade setups, but once you learn the key steps, you should be able to find the potential trade signals in any asset.
The Trend Rider V 3 Forex Trading System also relies on price action confirmation signals. So, we should have basic knowledge about the candlestick patterns to use this strategy in the real market. Those who are new can learn about the formation of the pin bar and engulfing pattern formation in the demo account. Usually, the traders relies on these two patterns while using this strategy.
Trend Rider V 3 Forex System For MT4 - The Trading Indicators
After seeing the above image, you might be wondering about the functions of the enlisted indicators. To make things easier, we are going to give you a brief idea of the functions of each indicator.
Bollinger Bands: The Bollinger Bands indicator is used to determine the dynamic support and resistance level in the chart. The upper band act as the resistance and the lower band act as the support level.
Moving Averages: the trend rider 3 forex strategy consists of four moving averages. We have a Linear Weighted moving average of period 85 applied to the close of candlestick price. The second moving average is an exponential moving average of period 50. And to identify the short-term movement in the price, we will be using SMA 10 and EMA 5.
Clock: This indicator helps us to determine the active trading sessions during the trade execution period.
MACD: It determines the bullish and bearish condition of the market. The blue histogram stands for a bullish trend and the pink histogram stands for a bearish market.
Daily Data: It shows important market metrics at the upper left corner of the chart. By analyzing these data, we can assume whether the trade signal is strong or weak.
EMA Crossover Signal: EMA crosses are used to determine the shift in the trend. If the 5 EMA crosses above 10 SMA, we should expect a bullish rally. On the contrary, if the 5 EMA crosses below the 10 SMA, we should be expecting a bearish rally.
BBands: It helps us to determine the existing trend. If the color blue, we should expect a bullish rally. On the contrary, if the color is red, we should expect a bearish rally.
RSI: It determines the overbought and oversold condition of the asset. 0-20 level is marked as oversold zone and 80-100 level is marked as the overbought zone.
Stochastic Oscillator: It also acts like the RSI. If the signal line stays above the 80 marks, we should be looking for the short trade. On the contrary, if the signal line stays below 20 lines, we should be looking for the long trade.
The Trend Rider V 3 Forex System For MT4 Trading Setups
Long trade setup:
To take a long trade, we need to check some key metrics. Unless the market fulfills some specific criteria, we should not take any long trade.
Conditions to execute long trade:
- Bband should be blue in color.
- The relative Strength Index should be in the oversold zone.
- Price should bounce off the lower Bollinger band and form a bullish pin bar or engulfing pattern.
- EMA 5 should cross above the 10 SMA.
- The stochastic oscillator signal line should be in the oversold zone.
- The slope in the 85 and 50 moving averages should be positive.
Take profit and Stop loss
You should set the take profit to the nearest resistance level and the stop loss should be set below the support level. You may also use the price action confirmation signals to set the SL price.
Short trade setup
To take the short trade, we need to find a bearish trend. After that, we need to check some conditions.
Conditions to execute the short trade:
- Bband should be red in color.
- The relative Strength Index should be in the overbought zone.
- Price should bounce reject the upper Bollinger band and form a bearish pin bar or engulfing pattern.
- EMA 5 should cross below the 10 SMA.
- The stochastic oscillator signal line should be in the overbought zone.
- The slope in the 85 and 50 moving averages should be negative.
Take profit and Stop loss
You should set the take profit to the nearest support level and the stop loss should be set above the resistance level. You may also use the price action confirmation signals to set the SL price.
Conclusion:
Trend Rider V 3 Forex System is may seem tough at the initial stage but once you learn its key functions in the paper trading account, you should feel comfortable with this strategy. To improve the efficiency of this strategy, you should also learn about the pin bar and the engulfing patterns.
Note that, risk management policy is one of the crucial factors to survive in the Forex market. While using this strategy, you should not risk more than 2% of your account balance as there is no guarantee that you will win from a certain trade setup.
Download the complete system description and the files here:
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