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Best forex trend trading strategy


The “Trend River” Trading Strategy

Markets are not static. They are in a constant state of change. This leads to the fact that recently profitable Forex strategies start to give out false signals and drain the deposit. Identifying this critical moment in time and adjusting the game plan is the main task of any trader. Sometimes, however, a mere correction is not enough. Sometimes, you may need to completely change your trading strategy and approach.

The Trend River trading strategy has been developed by Vladislav Gilka. This strategy deserves special attention because it is complete, tested, and most important for any trader – profitable. Trend River works on the basis of simple moving averages, which have their own specific settings.

Highly volatile currency pairs like EUR/JPY are best for trading. GBP/USD, EUR/USD can also be used. The time interval for the implementation of trade operations is preferable at H1 or M30. The following trend strategy is quite promising and easy to master. The name “Trend River” is derived from its appearance, since it resembles a river on the charts and graphs.

Workspace Preparation

To get started, you will need the following:

A Moving Average with settings 233. Methods Simple, “”High””, Chocolate style and parameters for levels: 150, 890, 1440, 2330 (for five-digit prices quotes come after the decimal point, for four-digit prices, respectively, without the zero).

The numbers (except for 15) are taken from the Fibonacci sequence. We will agree to call the lines constructed by these numbers – Fibonacci lines (not to be confused with the tool in the trading terminals with a similar name).

After adjusting the upper moving average according to this trading strategy, the main brown line appears on the chart, as well as a filter line and three Fibonacci green lines. The first level, retreated 150 points above the main line, will be a signal for entering buy trades, the other three will act as Take Profit levels.

To build the lower Moving Average on the following trend strategy, all the same actions are performed as for the first line. Exceptions are the construction parameter formed by the price level – “”Low””, and the “”-“” sign in front of the values of additional levels.

With the conditions above being met, everything is ready to begin trade. The tactics of this trading strategy differ significantly for purchases and sales.

A preliminary signal to buy is the closing of the candle above the Fibonacci filtering line “”+150″”. The next step is to open three positions with the same lot when the price exceeds the closing level of the signal candle. Stop Loss for all positions is located at the line level “”- 150″” (the bottom filter).

Take Profit 1 on the Fibonacci “”+ 890″” line, Take Profit 2 on the “”+ 1440″” line and Take Profit 3 on the “”+ 2330″” line. When the price rises (after each new candle closes), all Take Profit’s move along the new positions of the corresponding moving averages. Stop Loss of all positions is also shifted to the new position of the filter level “”- 150″”.

After the Stop Loss of the last buy position triggers, the possibility to sell almost immediately appears. A preliminary signal of this trading strategy is the closing of the price candle below the “”- 150″” filter. At the closing level of the signal candle, the main signal for buying is generated.

Further actions are the same as when buying (mirrored) – opening three positions and placing Stop Loss on the upper filter (+150) and Take Profit at the appropriate Fibonacci levels (- 890, – 1440 and – 2330). Accompanying open positions is the same as when buying, the Stop Loss and Take Profit functions become offset after each closed candle along the corresponding lines of the indicators.

The Trend River trading strategy allows you to follow a strong trend and maintain constantly growing profits. Take Profit does not always work, but when it does, the profit is substantial enough to offset any potential and/or previously sustained losses. Even if only Take Profit is triggered, the loss level for this profitable strategy is lower than the profit.

Western Capital