XARD forex trading system uses multiple trend-following indicators to determine the direction of the trend. This guide will talk about how the XARD indicator works and how you can apply it as a strategy.
What is the XARD forex trading system?
The XARD combines four indicators to make a trend-following system. These indicators include STR, STR-12, CCI (Commodity Channel Index), and the XARDFX 38.
The STR and STR12 look for the sort to medium-term signals. STR is used as part of scalping strategies, while STR12 is used for day trading.
The CCI tells the difference between the current and the average price. It fluctuates between -100 and 100.
The XARDFX 38 is one of the best trend-following indicators and tells about the overbought and oversold levels. It creates bands around the price, like Bollinger Bands.
The XARD forex trading system and the BUY/SELL dialogue box are on the chart also. It tells if the current pair is BUY or SELL. In addition, the indicator mentions the day’s high/low, close, open, and average.
You’ll have multiple levels when applying the indicator to the current price action. These levels act as support and resistance. Whenever the price reaches these levels, the price can either go towards the relative level indicated by the XARD or fall towards the previous level.
XARD Strategy
When you apply the indicator, the first impression may seem overwhelming. How are you going to find out potential entry and exit points?
Although the chart may seem confusing initially, it’s easier to find the entry and exit points. Whenever the price dips below the lower/upper band of the XARD38, it creates a dot. This is our potential confirmation that the trend is about to reverse.
The system plots the dot in an uptrend when the price is below the lower band. Conversely, if the price goes above the bands, it creates a dot signifying that we can see a bearish reversal.
The good thing is XARD works on every timeframe. However, when you apply the indicator on longer timeframes, it produces fewer false signals.
Buy Signal
- The price must dip below the lower band.
- The XARD must plot the dot.
- Wait for the price to continue upwards and then enter the trade.
- Place a stop-loss at the dot.
- Set take-profit at the recent high or exit the trade when the price breaks above the upper band.
Sell Signal
- The price must go above the upper band.
- The XARD must plot the dot.
- Wait for the price to continue downwards and then enter the trade.
- Place a stop-loss at the dot.
- Set take-profit at the recent low or exit the trade when the price breaks below the lower band.
XARD Pros & Cons
Like many other indicators, XARD is not the holy grail of forex trading. It has its pros and cons. Let’s find out what they are.
Pros
- The combination of multiple indicators adds a confluence.
- XARD forex system talks about the exact entry and exit points.
- You can trade the indicator without adding any other indicator.
Cons
- The XARD forex trading system may not be suitable for short-term trading.
Conclusion
The XARD forex trading combines multiple trend-following indicators to give a clear picture of the direction of the trend. The multiple indicators confirm that the trend is about to reverse or continue. You can always practice trading on a forex demo account to begin with to improve your trading skills and build up your confidence.
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