The Light Forex Indicator System is a custom trend-following strategy. It is made of the following indicators: multiple Simple Moving Averages, RSI, MACD, and BBSqueeze.
This system fits all kinds of mt4 timeframes and currency pairs.
How does it work? How to apply in trading?
Trading Rules Explanation
Buy Long Entry
Open long buy trade when the following conditions are met:
- Price closes above the colorful set of 28-period SMAs and forms a bullish candle;
- RSI value goes above 50 levels;
- BBSqueeze and MACD show a positive value;
- Place your stop loss(SL) a few pips below the last chart swing low.
Open short-sell trade when the following conditions are met:
- Price closes below the colorful set of 28-period SMAs and forms a bearish candle;
- RSI value goes below 50 levels;
- BBSqueeze and MACD show a negative value;
- Place your stop loss(SL) a few pips above the last swing high.
Exit Trade / Take Profit
Close your open position when the RSI / BBSqueeze goes negative for a buy order or positive for a sell order, or use your preferred method of trade exit.
As always, to achieve better results, remember about good money management.
How to set up the Forex Trend & Breakout System in MT4?
- Bb squeeze.mq4
- Light Forex System. tpl
Copy and paste mt4 indicator files into the MQL4 folder of the MetaTrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Similarly, copy and paste the template file to the Templates folder.
Now, right-click on the chart, and hover over Templates. You will have displayed a list of available systems; left-click the template name you want to run.
Read More OMA Channel Scalping Forex Strategy
The Light Forex System is worth adding to your trading collection but remembers to have realistic expectations. Like any other forex technical analysis tool, it cannot provide accurate entry signals 100% of the time. Thus, it will give false signals occasionally. Its performance will vary significantly depending on forex market conditions.