The primary objective of an ideal trading system is to make market analysis easier and assist with making daily trading decisions. However, most traders, especially beginners, suffer confusion over which one to pick and rely on while choosing a system. The FX Profit Wave System represents one of the simplest trend-based trading strategies that traders can use with any level of prior trading experience.
What is the FX Profit Wave System?
The FX Profit Wave System represents a trend-following MT4 trading system. It can simultaneously signal short and long-term trends on multi-timeframe charts.
Initial versions of the Fx Profit Wave method were created for professional money managers, but later versions were available to retail investors and traders. The Fx Profit Wave technique is well-liked by forex traders worldwide, producing decent results when tested in actual market conditions with discipline. This system is effective at spotting trends and enables you to enter the market at the right time and leave it before it’s too late.
This system combines the ML indicator signal with the Histodot oscillator. The ML indicator determines the market trend and the dynamic support/resistance levels. On the other hand, the Histodot oscillator dot identifies the current market momentum to verify the trend signals generated by the system.
Apart from trend and momentum indicators, the FX Profit Wave System also includes TSI, an automatic trend strength meter plotted at the top-right corner of the chart. It uses blue/red bars and shows trend values to signal the current market bias.
How to Trade FX Profit Wave System?
The FX Profit Wave System thoroughly depends on ML indicators and TSI trend signal bars to assess the current market trend. It includes the Histodot momentum oscillator to filter the weak trend signals and eliminate the market noise during price consolidations.
You’ll notice the ML indicator level turn white when it works as a support during a bullish market trend. Contrarily, it becomes red and works as a resistance in a downtrend market.
After you get a trend confirmation, examine the signal using the Histodot oscillator. For example, the price exceeding the ML indicator level while the Histodot shows a positive value indicates an ideal opportunity to go long following a strong bullish trend.
Here are the buy-entry rules of the system:
- The ML indicator level turns white.
- The chart prints a blue candle right above the ML indicator level.
- The Histodot bars appear in blue above the zero level.
- Stop loss below the current ML indicator line.
- Exit buy whenever the ML line turns red and the Histodot value becomes negative.
Here are the sell-entry rules of the system:
- The ML indicator level turns red.
- The chart prints a red candle right below the ML indicator level.
- The Histodot bars appear in green below the zero level.
- Stop loss above the current ML indicator line.
- Exit sell whenever the ML line turns white and the Histodot shows positive value.
The FX Profit Wave System represents a consistent MT4 strategy equally effective in determining stock and forex trading signals. Since it only generates momentum and trend signals, you may require adding automatic or manual support/resistance levels to confirm the trade entry points.
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