To make a consistent profit, you should use a combination of indicators. This makes the decision-making process a bit simpler since you look to see if the variety of the indicators you are using gives the same kind of a signal: if both are saying buy entry or sell. Otherwise, if only one of the forex indicators is giving an entry signal, then it is advisable to hold your peace until the other shows the same signal, and if it doesn’t, then avoid opening a position.
One such strategy is the box trading indicator and the Ema channel indicator. This trading system is most suited when placing pending orders.
A pending order is an order you place, anticipating it will activate the order when the market level gets to where you have placed your trade. Essentially the type of pending orders used with this strategy is the stop orders. These usually are activated as the market trend continues in its previous direction.
The box breakout trading forex indicator comprises the forex Blue Indicator and the Simple Moving Average(SMA). The Forex Blue forex Indicator is responsible for drawing a blue color box within the region between the low and high values sampled in 3 hours. The forex trader uses this box to place pending orders.
Note: You should place the orders only after the complete formation of the blue color box.
However, for you to decide whether you are to put a buy or sell order, the SMA indicator of the Box breakout forex trading indicator and the Ema channel forex indicator comes in handy.
Fig. Ema Channel indicator.
On the other hand, the Ema channel has three lines; the upper line, the middle line, and the lower line. Mainly the central line of the channel band is the one that signals whether to buy or sell depending on its color.
How to conclude whether to put a buy or sell order
Buy the Oder:
the buy entry position should be opened when the Blue color box is formed above the Simple Moving Average(SMA). However, to make sure that it is time to put a buy pending order, you have to check that the middle band of the Ema channel indicator is green.
Fig. the position of buy stop and sell stop entries
The sell entry position should be opened when the Blue color box is formed below the Simple Moving Average(SMA). However, to make sure that it is time to put the sell position, you have to check that the middle band of the Ema channel indicator is red color.
Once you put your orders, you should place stops(SL) at twenty pips away from the point of the open order. That is, the stop loss(SL) should be 200 points away from the open order, and in the same way, the take profit should be 200 points away.
If the open orders haven’t been closed by the stop loss(SL) and the take profit(TP) before the close of the day, then the forex trader should close these trades manually himself.
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Box Breakout and Ema Channel Forex Indicator Free Download