As the practice of forum discussions shows, traders have long since moved away from the standard set of technical indicators, trying to invent some unique strategies with combined complex tools. PBF 2EMA Color, VC_ChanelTrend are literally a couple of examples of such tools that are not so easy to find on the Internet (talking about templates).
True, forums with such lively discussion are often attached to a private broker. Therefore, it seems that the author’s strategies laid out in discussions definitely have an imposed character. However, this is only a guess.
We do not impose our strategy on you, although it is also built on a rather rare trend indicator, which is considered quite good in some situations. You can download the Forex indicator for free by entering your e-mail in the comments (we will immediately send it to you), and then test it on a demo account.
Forex Indicator is free for FxCash blog readers
The Snake Trend trend indicator used in the strategy is used to determine entry points when a strong trend appears. In some of its versions there is an audible tone and an arrow display, but this is an amateur. Many squeak indicator annoying, because the sound is turned off. You should not delve into the indicator formula, this is a topic for a separate review. In short, one can only say that it is based on several moving averages, which are smoothed and filtered. As a filter, we will use the relative strength index (although you can add a stochastic).
- Timeframe – H1.
- Asset – EUR / USD. The basic settings of Snake Trend are somewhat different, because the proposed parameters are sharpened specifically for this currency pair.
- Snake Trend settings: Timeframe = 0, Length (20), Method (3), Smoothing (5), Filter (7), RealTime and Stready (false), SignalPrice (true).
- RSI Settings: Period (14), Apply to Close, Levels 50.
Long position opening condition:
- Snake Trend changed color from red to green.
- The relative strength index is above level 50.
At the next candle you can open a deal with a stop of about 25-30 points. After a profit of 30 points is fixed, stop moving to the opening level of the transaction and fix 50% of the income. After changing the color of the indicator to the opposite close the remaining 50%.
The condition for opening a short position:
- Snake Trend changed color from green to red.
- The relative strength index is below level 50.
The principle of opening and closing a transaction is similar. The number of unprofitable signals is quite large, but the loss is covered by one strong trend movement. Because you just need patience. You can increase the planned 50% take profit to 50 points, since the trend can grow by 100-200 p. On the eve of the close of the market before the weekend and during the opening hours on Monday, trade is not conducted.
We recommend to download the free Forex Snake Trend indicator and test it in practice. It will be interesting to know your opinion in the comments!