Forex Signal: A Profitable Forex Strategy

Forex Signal is an indicator trading strategy based mainly on the readings of a signal indicator. The beauty of this strategy is that it gives clear signals not only to open orders, but also to close them. Any currency pair can be used in trading. It is advisable to choose medium-term timeframes: from M30 to H4. But if you prefer short-term intraday trading, you may also test this strategy on M5 or M15 timeframes. Three indicators are used in this strategy: Stochastic, Signal 2, Forexsignal 30.

Strategy parameters

Currency pairs: any
Timeframe: M5 to H4
Trading time: any
Risk management: don’t risk more than 2-5% of the deposit per trade

Installing indicators and system template

Unpack the zip file with templates and indicators
Copy the indicators to the MQL4 folder -> indicators
Copy the template file to the templates folder
Restart the MT4 terminal
Opening the chart of the required currency pair
Install a template named “# forexsignal30.tpl”

The price chart with the strategy template should look like this:

Rules for opening deals using the Forex Signal strategy

To open a SELL order, the following conditions must be met:

The price should be at the upper border of the price channel (it is drawn automatically), this rule can be neglected, but the risk of hitting the stop loss increases significantly.
A large red arrow pointing down appeared on the chart.
Stochastic indicator is above level 80 (overbought zone).
An upward spike appears on the Forexsignal 30 extreme indicator.

To open a BUY order, the opposite conditions must be met:

The price must be at the lower border of the price channel.
A large blue up arrow appeared on the chart.
Stochastic indicator is below level 20 (oversold zone).
A downward spike appears on the Forexsignal 30 extreme indicator.

Forex signal strategy buy and sell examples

Closing of previously opened orders is performed when a blue cross appears above the price chart with an open buy position, or when a red cross appears under the chart when a sell order is open.

A safety stop-loss is set at 30-80 points (depending on the timeframe on which you are trading: the higher the timeframe the larger stop-loss should be) above or below the most recent high or low of the price.

Before using the Forex signal trading strategy on a real account, you should learn it and practice on a demo account.

In Forex-signal.zip file you will find: