5 min Trend Follower
 5min Trend Follower
Time frame: 5 minutes
Trading time: From EU open until US close
Recommended Forex Pairs: USD/JPY, USD/CHF, GBP/USD, EUR/USD, USD/CAD, AUD/USD, EUR/JPY and Gold
Trend Follower is a trend following system. If you ever heard the saying Trend is
your friend, this system will show you the mechanics behind these words. Its unique approach to the market will give you a great understanding of market movements and allow you to see that what
happens is not random but an underlying order behind price movement. Through practicing these exact rules with which the system was designed, you will get a more clear picture of the market and
begin to reap the financial rewards.
The system was created from a need not only to trade profitably but also to give
the traders a more clear picture of what they are doing and why they are doing it. Many commercial or public system just consist out of indicators without giving a clear understanding of price
movement and inform the trader with signals without him knowing why he got the signal and why he should enter the trade. This way a trader will not thrust the method and as a result he will have
a hard time being consistent.
If you don’t know exactly what you are doing, you
can not thrust the system and if you can’t thrust the system to follow the exact rules, you will not be profitable. Trend Follower ensures that the entries and exits are clearly defined and at
the same time allow the trader to be able to explain why he took the trade!
Traders are no longer subjects of spikes, volatile markets or rallies that mess
up many good systems. Money management is also a very important aspect of the system and you should take a good look at some articles on the Internet or in a book about it, although we have
covered exits and entries in the rules section. Without proper money management one is bound to fail in the long term! MONEY MANAGEMENT! Burn these words into your head.
Trend Follower is unique in that it doesn’t attempt to predict the future but
rather a tool that helps you to recognize the current trend and lets you go with the current flow. Mastering the system will give you greater peace of mind because you won’t need to keep up with
the economical events, trying to figure out the meaning of numbers, or opinions of experts. Unlike most other trading systems Trend Follower does not depend on past performance and should work on
every market. Its formulas are not based on pattern recognition and random selection of indicators, but rather a clean understanding and timing of the market.
In the picture 5 min trenf follower forex
system in action.
a)Â Signal
Arrows
b)Â MACD
c)Â Volatility Channel
d)Â Laguerre
e)Â Slope Direction line
f)Â Pivot Points
g)Â Guppy Multiple Moving Averages (GMMA)
The Rules
Trend Follower – The Rules
All the criteria must be met at the bar with signal or one after! If everything
is not met at the signal bar or one after, leave it alone! It might eventually go the right way, but in the long term it will give more false trades. Only take trades where at the signal bar or
one after all these rules apply! We enter the next bar after the signal.
Long\Buy
ENTRY: First We wait for a long signal alert
GUPPY
MMA: The green lines must be above the red lines!
Green, Red and Yellow lines must agree and head north. All the lines must be going in the same direction!
LAGUERRE: Laguerre
line must cross the 0.15 from below and head up
MACD: This is important! When you get the signal MACD must be above 0
STOP
LOSS: 5 points (+spread!) below recent LOW
ALTERNATE STOP LOSS: 20 points on default pairs and 25 point on more volatile pairs such as the GBP pairs and crosses. Choose whatever SL method fits you best
EXITÂ (combined): When you open a position you can then choose to close half of the position on the first pivot point and let the other half run till the slope direction line
goes red
ALTERNATE EXIT: You
can choose your own method and close positions at pivot points or when slope direction line goes red after a move, or when price (a new candle) opens on the other side of the volatility
channel
Short\Sell
ENTRY: First We wait for a short signal alert
GUPPY MMA: The green lines must be below the red lines! Green, Red and Yellow lines must agree and head south.All the lines must be going in the same direction!
LAGUERRE: Laguerre line must cross the 0.75 from above and head down
MACD: This is important! When you get the signal MACD must be below 0
STOP LOSS: 5 points (+spread!) above recent HIGH
ALTERNATE STOP LOSS: 20 points on default pairs and 25 point on more volatile pairs such as the GBP pairs and crosses. Choose whatever SL method fits you
best
EXITÂ (combined): When you open a position you can then choose to close half of the position on the first pivot point and let the other half run till the slope direction line
goes blue.
ALTERNATE EXIT: You can choose your own method and close positions at pivot points or when slope direction line goes red after a move, or when price opens on the other side of the volatility
channel.
Breakouts
Though we avoid trading breakouts, the guppy
MMAÂ shows us exactly when this is happening. Once a
breakout has occurred whereby the yellow lines cross the red lines but the green lines are still below the red, we would expect the yellow lines to retrace back. This is the point where we would
be waiting to place our new positions in the direction of the new trend. Please note that you DO NOT place trades during a breakout but after the prices have retraced which is denoted by the green and red lines changing
positions.
Long Breakout:
The red lines had been above the green lines then the yellow crossed the red
lines and soon the price retraced to the other lines. The green are now above the reds and they show a long trend.
Short Breakout:
The red lines had been below the green lines. This was indicating a long trend.
Then the yellow lines crossed the green and red lines. Once the green lines have been below the red lines we can say that we are in a short trend now and we can wait for
signals.
Remember the positions of GREEN lines and RED lines. For a trend to be considered
long the green must be above the red lines, and for short the green lines must be below the red lines.
Share your opinion, can help everyone to understand the forex
strategy.
- Platform: Metatrader4
- Currency pairs: Any pairs, indices and metals
- Trading Time: Around the clock
- Recommended broker: icmarkets, XM
- How to install MT4 indicator?
- 1. On the desktop, double-click to open the MT4 trading platform software you installed.
- 2. Click on “File” – “Open Data Folder” in the upper left corner, double-click the MQL4 folder, and double-click the Indicators folder
- 3. Copy the metrics you need to install to the Indicators folder
- 4. Open MT4, find “Navigator” in the display menu, then click “Technical Indicators” of “Navigator” and right click to refresh, you will see the indicator just copied.
- 5. In the “Technical Indicators” of “Navigator”, find the indicator file just installed, double click or click manually to the chart window
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