Yet another awesome strategy for Forex Traders that want more

Forex Strategy: Combining Bar Colour, Zero Lag MACD, MACD, Dot Colour, Histoband, Heiken Ashi, MA Mirror, Trend/Position Alert and CCI_T3_2 Indicators as

your trade strategy

Forex trading is a high risk venture. As a beginner you loose your investment with the wrong information traded. It applies to some big players as the market doesn’t respect name or status. Hence to succeed in forex/international currency trade you must have the right info which you can get observing indicators or following economic news – i.e. technical analysis and fundamental analysis respectively.

While surfing the net, I came across some cool indicators which I am currently trying out and I must say they are quit impressive. These indicators are: Bar Colour, Zero Lag MACD, MACD, Dot Colour, Histoband, Heiken Ashi, MA Mirror, Trend/Position Alert and CCI_T3_2. To make it more reliable I add Heiken Ashi and MACD included in my mt4 terminal to complete my trade strategy. The above tools are powerful in the hands of expert traders.

To enjoy using this strategy please change your chart candles to lines and add Heiken Ashi plus all the other listed indicators, then save as a template. Resave again with Heiken Ashi removed. This is to minimize chart clutter as you then have to load the templates just when you need them.

Your terminal window will look like the one below (I changed Colours for easy view):

Please Click to enlarge photo

How to combine the indicators to make use of the strategy

When your chart looks like the one above, this is how you know when exactly to trade or exit a trade. Please adhere to the following rules as applied to use of the known and the introduced indicators if they are new to you:

The combination of the indicators, excluding Heiken Ashi, Zero Lag MA, MA Mirror and Stochastic Oscilator is known as the Ansatsu Forex Strategy, A trend follower. This system is designed for longer time frames, it’s a trend following system that just rides the trend to the maximum profit, you can use shorter time frames but you will be exposed to more market noise, this system works perfectly in D1 time frame.

This system is made of two basic functions:
1. Determining the actual trend (The trend director indicators)
2. Determining when to take a position (The trade activator indicators).

Longer ATR stop line = red line;
Shorter ATR stop line = yellow line.

Interpreting trends
Up trend:

ATR stops must be below the charts, (the shorter and the longer atr stop indicators) its easy to spot a reversal of the atr stop, if the close of the bar is below or above the atr stop line, it means a reversal, it’s the close and not the high or low of the bar that determines that;

The colour dots in the chart must be blue;
Histobands indicator must be in blue colour or above zero;
CCI_T3 indicator must be blue or above zero;
Bar colour indicator must be blue.

Down trend:

ATR stops must be above the charts;
The dots in the chart must be red;
Histobandss indicator must be in red colour or below zero;
CCI_T3 indicator must be red or below zero;
Bar colour indicator must be red.

The above rules are for determining the trend and not when to take a position, to take a position you must be with right momentum, indicators will tell you that.

The main indicator for trade activator is the bar colour, this indicator shows three areas:

Blue = up trend;
Red = down trend;
White = neutral.

For taking buy position the blue colour must appear after a white area, that’s perfect momentum to take a position, for this to happen all the others indicators must be too in uptrend situation like I said above, they determine the trend. Now I said the bar colour was the main indicator to determine when to take a position, but not the only, the unique indicator that does not serve for trade activation is the CCi_T3, this one is only for determining the trend! If you take a position when CCI_T3 changes trend direction you are not in a good momentum.
If the bar colour triggers buy position and for example if the atr stops are not below the chart or the dots are not blue you wait for these indicators to turn direction, the same for the Histobands, if the Histobands is still red, wait for it to turn blue, if you don’t wait you may take a false signal and loose the trade, now for this to happen the CCI_T3 had to be already in blue colour before the bar colour indicator turning to blue;

I will proceed to give you a chart eg  showing conditions for determining a good conditions to buy below:

If you cant see image well, click to enlarge

From the above chat, to correctly determine a buy situation in a trending market, you must wait for the indicators to assume the right positions.
This means the dot colour must be above price bar/candle
Zero Lag MACD line must have cleared 0.00 line (be above it. This applies to MACD too)
MA mirror must assume an upward direction above 0.00 line
The histobands must be blue and not red
The CCI_T3 blue line must be above 0.00 line and green bars
ATR stops should be above price candle (you can set blue for buy and red for sell)
Lastly, the bar colour must be blue colour and not white or red.

For a sell situation, the above is reversed. Please remember that all or majority of the indicators must tally, but of importance, adhere to the bar colour to take position as appropriate.

You can find the ansatsu strategy here http://tinyurl.com/trend-and-range-system

Happy trading and more pips for your account.