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Sunday, March 20, 2011

Trend Finder Indicator

Forex Trading Strategy - TrendFinder
Ride the daily trend in the EUR/USD pair with the trendfinder system. Trendfinder provides an easy solution for currency traders who do not like to watch the markets all day. It takes less than 5 min a day to check for new trades.

Trading Setup
Time Frame: daily
Preferred Currency Pair: Euro/Dollar
Trading Indicator: TrendFinder download here

Rules For A Buy Trade
1) Trendfinder indicator: Blue band above the red band.
2) Euro/Dollar closes inside the blue/red price channel.
3) Go long @ market on the close of the inside candlestick.
4) Set safety stop @ 200% ATR (average true range) or at the most recent swing low level.
5) Exit the trade if:
a) Euro/dollar closes above the blue band.
b) Euro/dollar closes below the red band.

TrendFinder Forex Trading Strategy, EUR/USD Daily Chart

The chart above illustrates how to trade the trendfinder system. The blue band trades above the red band. We look to buy inside the price channel. The Euro/Dollar closes inside the channel at 1.2880 and we open a buy trade. We immediately place a 200% ATR stop loss below our entry price. 17 days later, the currency pair closes above the blue band at 1.3932 and we exit our profitable position for a 1052 pip gain.

Rules For A Sell Trade
1) Trendfinder indicator: Red band above the blue band.
2) Euro/Dollar closes inside the blue/red price channel.
3) Go short @ market on the close of the inside candlestick.
4) Set safety stop @ 200% ATR (average true range) or at the most recent swing high level.
5) Exit the trade if:
a) Euro/dollar closes below the red band.
b) Euro/dollar closes above the blue band.

More TrendFinder Trade Examples

5 comments:

DIMAS.CELLULER said...

OK thanksForex Trading Robot

miguel said...

hello friend, the indicator is inserted to download is not AWESOME OSCILLATOR you enter on the chart.

shwan said...

Yes a brilliant article Im pleased to have found it

shwan said...

Nice blog..I am looking forward to read your next great article.

shwanmartin said...

Well depicted post

 
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