Many forex trading systems on the market are free, but many are not. While choosing a free-source trading system, a trader must remain cautious about its signal’s authenticity and accuracy. This guide will introduce you to the Forex Illumination Signals System, explaining how it enables you to make critical trading decisions in a simpler and easier way.
What is Forex Illumination Signals System?
The Forex illumination signals a forex trading strategy used to identify buy-sell signals using advanced MT4 trend indicators. Its primary objective is to help traders consistently achieve profitable short-term, medium, and long-term trading results.
Technically, the Heiken Ashi plays the system’s central role in determining market trends. The benefit of a Heiken Ashi is that it shows you the market’s direction clearly. Impressively, it can filter out background noise and smooth choppy price movements. Besides scalpers and intraday traders, seasoned market participants consider it quite trustworthy and rewarding.
The Forex Illumination Signals System also includes a spread meter and a candle clock offering additional information to enhance your trading decision.
How to Trade Forex Illumination Signals System
The Forex Illumination Signals System doesn’t involve a lot of trend or momentum indicators like advanced trading systems. Instead, it only applies to Heiken Ashi to determine the market bias and filter the signal using the Profit Master V3.
Technically, this system doesn’t point to specific price zones for entering a buy or sell order. It only determines market trends so that you can choose the correct direction of your trade entries.
Look to place buy orders when the Heiken Ashi candle is white and closed above significant support. Alternatively, you can enter long following a bullish breakout when the candle closes above a solid resistance level.
While determining selling opportunities, wait until the Heiken Ashi candle color switches to red to signal a downtrend. It’ll add a better confirmation of a sell order if the candle fails a break resistance or moves below support.
Please note that during choppy markets, you may witness the system generating inconsistent trend signals. It mostly happens when the price suffers rapid changes in momentum due to sudden shifts in market sentiments. Although, you can simply avoid such market noises by considering an additional trend or momentum indicator alongside the Forex Illumination Signals System.
Buy Signal
Let’s learn how to identify the buy signal:
- The price rejects support or breaks above resistance.
- The Heiken Ashi candles are white.
- Stop loss below the current market low.
- Take your profit whenever the Heiken Ashi candles turn red.
Sell Signal
Let’s learn how to identify the sell signal:
- The price rejects resistance or breaks below support.
- The Heiken Ashi candles are red.
- Stop loss above the current market high.
- Take your profit whenever the Heiken Ashi candles turn white.
Conclusion
The Forex Illumination Signals System is a trend-following forex trading system. Incorporating the ideas of the trend is always preferable to blindly following this forex trading technique. However, a price momentum can suddenly switch direction based on the changes in market momentum. Therefore, an additional trend indicator can help you avoid weak trade signals.
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