CONSTRUCTION OF TREND FOREX TRADING STRATEGIES
A market can be in two conditions: in the condition of trend and in the condition of flat. The market lasts about 70% in a flat condition, and 30% in a trend one. Basically because of this, it is more perspective to develop flat forex trading strategy.
Are these statements true?
We adhere to other point of view: flat is part of trend of higher-order. What does it mean? It means that if you trade on timeframe H1 and defined a market condition as flat, than possibly on timeframe of higher-order (H4 or D1) we are in a condition of trend. Strong signal, produced by your indicator or forex mechanical trade system, on timeframe м30 may conflict with signals on timeframes of higher-order. What looks like trend on the graphic м15 and serves as a signal for entering for example long can be just a simple jump on the graphic H1, where the bear trend begins. But if you examine a few temporal scales and signals on those scales are congruous, in this case with a high probability you will see strong flow which breakes the lines of resistance and support (which you built), also canals and Fibonacci levels.
I do not know who was the first one to consider and examine the flow of currency on various timeframes, but I read this in the book of A. Elder “THE BASES of EXCHANGE TRADE” where the author describes his own trade “systems of three screens”. This system was the base of many forex trading strategies of traders all over the world. And the most important in this trading strategy is that the price on different temporal intervals can move in different directions, and it is necessary to examine several time scales - timeframes in order to make a decision for “entrance” or “exit” the market.
So the first statement: for the construction of trend forex trade strategies, it is necessary to examine several time intervals (timeframes), in other words it is necessary to form signals from several timeframes.
Signals can be formed due to indicators on different timeframes or due to superposition of candles on various timeframes. We developed an indicator-trend Metatrader Indicator TREND, which forecasts the possible direction of the trend based on 4 screens concept. 4 rows of this indicator represent data from four timeframes:
M5, M15, M30, and H1.
7 columns represent 7 last bars of each timeframe. Bar color indicates its type – bullish, bearish, or neutral. The rightmost column contains a summary of evaluation by poll. You should open a trade along the direction of the main trend determined by larger timeframes. Smaller timeframes allow determining when the trend retracement finishes. Used timeframes can be changed in accordance with your own preferences.
For example: m30, H1, H4, D1
Also, the strategy and Expert Advisor Trend are developed on the basis of indicator-trend. Expert advisor Trend is successfully used in real trade.
EXPERT ADVISOR TREND
Currency: GBP/USD
Timeframe: M5
Using Indicators: i-Trend
Trading Time: Round-the-clock
Risk: Medium
Minimum Deposit: $1000
Recommended Deposit: $2000
Orders Type: BUY and SELL market orders
Concept: Opening in a direction of a trend, the indicator i -Trend
Money Management: Stop Loss and Take Profit
Customization: possible upon the request
Back test
When you calculate the up arrow /down arrow or blue dot for a time frame.......do you take into account the age of the time frame.
1.For example , a 1H arrow can be green at the start of the hour and turn to red after 30 minutes life of that 1H bar.
2.OR........for example , in your iTrend system , DURING the life of the 1H bar ......when the 1H bar turns from green to red ........does iTrend arrow immediately also turn from green to red.
Thank you for your assistance.
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Q. 2.OR........for example , in your iTrend system , DURING the life of the 1H bar ......when the 1H bar turns from green to red ........does iTrend arrow immediately also turn from green to red.
A. The indicator recalculates column for 0-bar and summarized bar
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Thank you for the reply. I appreciate your prompt assistance.
Please explain the 0 bar column.
1.Which is the newest/youngest bar ?
Is it 0 bar or is it 1 bar.
2. If 0 bar is NOT the newest/youngest bar , then what is the purpose of the 0 bar ? How to be interpreted please ?
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A. 0 -bar - rightmost bar
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