Introduction to the Light Forex System
The Light Forex System is a custom trend-following strategy.
It is made of the following indicators: multiple Simple Moving Averages, RSI, MACD, and BBSqueeze.
This system fits all kinds of timeframes and currency pairs.
How does it work? How to apply in trading?
Trading Rules Explanation
Open long trade when the following conditions are met:
- Price closes above the colorful set of 28 period SMAs and forms a bullish candle;
- RSI value goes above 50 level;
- BBSqueeze and MACD shows the positive value;
- Place your stop loss a few pips below last swing low.
Open short trade when the following conditions are met:
- Price closes belowthe colorful set of 28 period SMAs and forms a bearish candle;
- RSI value goes below 50 level;
- BBSqueeze and MACD shows the negative value;
- Place your stop loss a few pips above last swing high.
Exit Trade / Take Profit
Close your open position when the RSI / BBSqueeze goes negative for a buy order, or goes positive for a sell order, or use your own preferred method of trade exit.
As always, to achieve good results, remember about proper money management.
How to set up the Forex Trend & Breakout System in MT4?
- Light Forex System.tpl
Copy and paste indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, that goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Similarly, copy and paste template file to the Templates folder.
Now, right-click on the chart, hover over Templates. You will have displayed a list of available systems, left-click template name you want to run.
Click the link below:
The Light Forex System is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions.