If you have ever tried an MT4 trading system, you may already know how important it is to pick a set of relevant indicators that are perfectly combined to establish a consistent trading strategy. The Forex Guru Trading System comprises effective trend and momentum indicators determining potential trend-following trading opportunities.
What is the Forex Guru Trading System?
The Forex Guru Trading System reflects an incredible trend-following trading strategy that spots possible trend-reversal conditions and outlines dynamic support/resistance levels.
It plots crossovers between the 5 and 9-day simple moving averages (SMA) to determine the market bias. The system uses arrow signals to highlight potential crossovers. Besides, you can use the 9 SMA as a dynamic trendline too.
The Market Emotions V2 indicator determines market momentums. The colors red and blue represent the bullish and bearish momentum, respectively. Besides, the Forex Guru Cloud alone can signal a potential change in trend direction using its simple colored bars.
Furthermore, you can use the Forex Guru Histogram indicator to examine possible trade setups and filter weak trading signals.
How to Trade Forex Guru Trading System?
The Forex Guru Trading System completely depends on the crossovers between the 5 and 9-period SMA to determine a market trend. The 5 SMA above the 9 SMA indicates a bullish trend. Oppositely, the 5 SMA moves below the 9 SMA during a downtrend market.
The Market Emotions V2 bars signal the primary confirmation of the price momentum. It is blu when the bullish momentum turns red to signal a bearish momentum. Besides, the Forex Guru Cloud bar switches its color to green and red to verify the momentum signals of the Market Emotions V2.
For example, the Market Emotions V2 bars are blue, and the cloud bar turns green simultaneously means the market is in a strong bullish momentum.
Furthermore, you can use the Forex Guru Histogram bars to examine the trade setups detected by the system. For example, the histogram value must be positive before you place a buy order. Conversely, wait for the bars to appear below the zero level before confirming a sell entry.
Consider the following market conditions while anticipating a buy signal:
- Signal arrows point upwards.
- 5 SMA exceeds the 9 SMA.
- Market Emotions V2 bars turn blue.
- Forex Guru Cloud plots green bars.
- The Histogram indicator shows a positive value.
- Stop Loss below the current 9 SMA level.
- Exit buy when all the oscillators signal a bearish momentum.
Consider the following market conditions while anticipating a sell signal:
- Signal arrows point downwards.
- 5 SMA moves below the 9 SMA.
- Market Emotions V2 bars turn red.
- Forex Guru Cloud plots red bars.
- The Histogram indicator shows a negative value.
- Stop Loss above the current 9 SMA level.
- Exit short when all the oscillators signal a bullish momentum.
The Forex Guru Trading System enables you to choose any forex currency pair you like to trade on your preferred timeframes. However, before going along with the system to live markets, it is essential to master all the system indicators individually. You can always practice trading on a forex demo account to build up your confidence. Also, you can include horizontal support/resistance levels with the trading strategy to add more confluence to your trading decisions.
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