Trading Made Simple Forex Strategy- Powered by TDI Indicator
Each trader in the Forex market experiences a more or less common cycle. It begins with a demo account. He buys as the price goes up as well as sells if the price falls down. Everything looks ideal in the first 2 weeks. It then takes the decision to open up your real account.
However, in the meantime, you realize there’re several indicators that are telling you about several directions. Your charts get smeared with indicators leaving you with no free space. Now, as you set out to open a position with actual money and this is when things become getting tougher. At times, as a trader, you find yourself closing trades with meager profits whilst the trade could be closed earlier with more than 150 pips. It’s all because the trader here is not guided by a definite strategy and trading rules. As a result, his account gradually begins to melt down under varied market conditions.
Trading Strategy Pitfalls
At this very point, a trader begins to look for forums & websites for direction and guidance. By then, he blows out another account and puts all the blame on others for bad calls. After that, he begins to look for seasoned advisors. Now, once again, he ends up with similar results. Finally, he sets out to look for an efficient strategy that can actually work and he also starts to learn different new stuff as he continues his search.
If you ask me, I will say, patience is an extremely crucial virtue here. You have to wait for the perfect time and as you get it, you will apply the strategy explained here. You will need to learn the basics of risk management too. Additionally, you need to learn to keep yourself indifferent when other traders are calling. You will only step to trade if you feel the push from within. In fact, it’s how you will be able to master your system & touch success.
How to use the TDI Indicator
Well, I will use MetaTrader to explain the strategy here since it’s the most popular program for trading today. The indicators noted here work on the MT4 platform. A trader will need to copy the indicators to the respective “indicators” folder & he will do the same with template files.
For example, Indicators may go to the “D:mt4expertsindicators” folder and templates go to “D:mt4templates”. Now, I will analyze a strategy that works superb, provided you stick to the rules. This strategy will be great for trading with all prime currency pairs. 4 hours is our recommended time frame. But, before everything, please see the chart here: You can see we have used Heiken Ashi candles. There are 5 basic signals which help to detect trends & buying opportunities:
- Positive (green) candles without wicks: These candles signify powerful uptrend momentum across trading sessions which is likely to continue further. In this case, a trader will proceed with a hands-off attitude to profits, while also considering timely adding on right to the trading position. If the positive candles do not show lower shadows, it means a strong uptrend and an opportunity for immense profits.
- Positive (green) candles with wicks/shadows: It means strength will take price action to a further high. In such situations, when the upside trend is still there, an investor should try to add to the overall position.
- Smaller Candle with long wicks: It’s like a Doji candlestick. Such a candle symbolizes a near-term turnaround for the overall trend. It’s an indecisive time no doubt. So, you should wait for a better direction for your further action in the market. A wise trader here will certainly wait for a clearer signal for better confirmation prior to finalizing any position.
- Negative (red) candles with wicks or shadows: It signifies negative or weak momentum for price action in the market. In such a situation, traders should exit long/selling positions.
- Negative (red) candles without wicks or shadows: It signifies a strong selling momentum which will possibly support a shift lower in overall decline. In such a situation, a trader should add to existent short holdings.
Trading Made Simple Trading Strategy
It’s to note here trades will be made between 06:00- 14:00 GMT. You will enter a trade when green will cross red on TDI in the initial stage of the candle. If there are a minimum of 3 candles, refrain from trading. Be patient, and wait for the next trade opportunity. But, you can reenter on the bounce if green seems to bounce off the red & the trend continues. If you see a green-colored TDI line lying flat or has hooked over or has made a checking mark reversal, make sure to exit a trade.
You can see that all needed conditions have been met here in the given example.
The first yellow tinted candle is sitting where you will sell and you will buy where you will find 2nd yellow tinted candle. Your stop will be determined by your specific risk appetite. You can try out this strategy on your demo account and practice till you are confident to switch to live account.
- TDI Red Green.ex4
- Stochastic Slope.ex4
Related Article: Compass Forex Strategy-Six MT4 Indicators-based Strategy