Countertrend forex system For MT4

Countertrend forex system For MT4

 

Table Of Contents:

  1. Countertrend forex system For MT4
  2. Countertrend forex system For MT4 - Indicators
  3. Trading the Countertrend forex system For MT4
    1. Long Entry Setup
    2. Stop Loss and Take Profit Settings
    3. Short Trade Entry Setup
    4. Stop Loss and Take Profit Settings
  4. Countertrend forex system For MT4 - Conclusion

 

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 Countertrend forex system For MT4 is a trading system which deploys a trend-following approach as well as a momentum detection system in picking trade opportunities. It goes a step further by highlighting these opportunities when they occur, making visual identification easier.

But what are the components of the Countertrend Forex System and how do they work in getting this system all together?


FREE Countertrend forex system

Download the FREE Countertrend forex system for MT4.

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

 

Countertrend forex system For MT4 - Indicators


There are several indicators that are used in the compilation of this strategy.

 

    1. The Doda Stochastic is basically a Stochastics indicator and is the momentum indicator for the two strategies. It displays overbought and oversold market conditions on the charts.

    2. ForexCounterAttack BuySell indicator displays buy (up-green) or sell (red-down) arrows on the price chart when the indicator detects a reversal signal at a market extreme area.

    3. ForexCounterAttack Filter is the filter for the entry setups. It will display boldly on its window whether to take the trades or not to take the trades. It displays an aqua coloured line when no trade conditions are present, then displays a red line for sell and a green line for buying setups.

 

The Countertrend Forex System can be applied on the 15-minutes, 30-minutes or 1-hour timeframes. In using the strategy on these time frames, the following settings and parameters are recommended on the Doda Stochastic indicator: (5, 8, 5) with levels 20 and 80, signal indicator and a filter signal indicator.

The recommended currency pairs are EUR/USD, EUR/JPY and GBP/JPY.

 

Trading the Countertrend forex system For MT4

 

A buy signal triggered by a dip below the critical line at the vertical height of 20 and below on the Doda Stochastics can only be considered meaningful if accompanied by confirmation from the filtering indicator (ForexCounterAttack Filter). If the intention is to buy the asset, we are talking about a reversal of price from an oversold area.

Similarly, the signal to sell is a downward reversal from the price being in the overbought section of the Doda Stochastic line window. This must receive colour confirmation from the ForexCounterAttack Filter.

The buy and sell setups of the Countertrend Forex System are discussed below:

 

Long Entry Setup

 

    • Wait for the filter indicator to turn green.
    • Wait for the lines of the Doda Stochastic indicator to cross deep into oversold territory. This is very important.

    • Wait for the appearance of the green arrow signal below the candles, indicating the go-ahead to buy.

    • Initiate the long position at the open of the next candle.



Countertrend_Forex_System_2

The chart shows several arrows that could possibly have shown areas to initiate buy entries. However, only three of these were valid.

Setups that were numbered 1, 4 and 5 were not valid because the Doda Stochastics lines had not crossed in the oversold area. Setup number 6 was invalidated for the same reason. The setup numbered 2 had an aqua coloration on the ForexCounterAttack Filter indicator. Only setups number 3 and 7 fulfilled all the conditions strictly.

Stop Loss and Take Profit Settings

Keep the stop loss around 15 – 20 pips. Take profit levels vary due to differences in the timeframe used. For the 15-minute time frame, keep the Take Profit at 10-20 pips. For the 30-minute timeframe, allow for 20 – 30 pips. The 1-hour timeframe may allow for up to 40 pips to be targeted. You may also decide to use an area of previous resistance to set as your TP area. The target must be set below the previous resistance, and the trades protected with a trailing stop.

You can set the stop loss at a few pips below the price candle or the entry signal arrows.

 

Short Trade Entry Setup

 

    • Wait for the filter indicator to turn red.

 

    • Wait for the lines of the Doda Stochastic indicator to cross deep into overbought territory. This is very important.

 

    • Wait for the appearance of the red down-arrow signal above the candles, indicating the go-ahead to sell the asset.

 

  • Go short at the open of the next candle.



Here, the sell signal occurred at two different spots and both entries were valid.

Stop Loss and Take Profit Settings

As a rule, the risk-reward ratio should be 1:2 at the minimum. This means you should chase 2 pips for every 1 placed as a stop loss. The stop loss can be kept around 15 – 20 pips if trading on the hourly chart with a target of 40 pips.

Take profit levels will vary due to differences in the timeframes. For the 15-minute time frame, Take Profit can be set at 20 pips of the stop loss used is 10 pips. For the 30-minute timeframe, allow up to 30 pips. You may also decide to use an area of previous support to set your TP area. Also, an old resistance that was breached to the upside can become a new support for falling prices. The trades should be protected with a trailing stop.

 

Countertrend forex system For MT4 - Conclusion

 

Many traders call the Doda Stochastic Oscillator as the best modern indicator, and one can agree with this. However, it has some drawbacks present in the vast majority of statistical indicators of this type. The ForexCounterAttack BuySell indicator reacts promptly to all price fluctuations, resulting in a large number of false signals. It is imperative to make sure all setups align as stipulated before you pull the trigger.

Download the complete system description and the files here:

FREE Countertrend forex system

Download the FREE Countertrend forex 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.