Now you Can download the Sonic Wave Forex Day MT4 Trading Strategy at No Cost on AtoZ Trade indexes
The theory behind the strategy is to use the Rainbow MA as an area to wait for pullbacks on. But first, we would need to identify if we’re on a trending market or perhaps at the start of a trend.
To recognize a fashion, we’d use a couple of rules. To begin with, the Rainbow MA should be in agreement with all the intermediate trend, the 50-period Exponential Moving Average (EMA). It should be on the right side of the 50 EMA. Then, price should be pulling away from the Rainbow MA into the direction of this trend. Lastly, as price pulls away, the Rainbow MA would have a propensity to fan out, so it should be fanning out broad enough.
The pullback and entry will be simple. We will wait for the cost to pull straight back and close inside the Rainbow MA, then wait for it to exit and close towards the path of this trend. This shows the resumption of this trend. If this happens, we then pull the trigger and observe cost run.
- RainbowMMA_09 (Sky Blue)
- RainbowMMA_10 (Gold)
- 50 EMA (Magenta)
Timeframe: 5-minute graph
Currency Pair: any Significant set
Trading Session: London or New York session
The best way to trade with Sonic Wave Forex Day MT4 Trading Strategy?
Buy (Extended ) Trade Setup Rules
- The Rainbow MAs must be over the 50 EMA
- Price should come from over the Rainbow MAs
- The Rainbow MAs should be fanning out
- Wait for cost to retrace and shut inside the Rainbow MAs
- Enter a buy market order as price closes back above the Rainbow MAs
- Establish the stop loss at the fractal below the entry candle
- Close to the trade on profit as cost enters back and shuts inside the Rainbow MAs
Sell (Short) Trade Setup Rules
- The Rainbow MAs must be below the 50 EMA
- Price should come from under the Rainbow MAs
- The Rainbow MAs must be fanning out
- Wait for price to retrace and shut inside the Rainbow MAs
- Enter a market order as cost closes back below the Rainbow MAs
- Set the stop loss at the fractal over the entrance candle
- Close the trade on profit as price enters back and shuts within the Rainbow MAs
- How to download and install an indicator?
In order to install the indicator in your MT4 system, you Want to follow these measures:
- Click on”Download Indicator” button located at the top right corner of this display.
- Save the file to your PC.
- Extract and transfer the files into MT4>Indicator folder of this MetaTrader4 software file directory.
- Restart your own Metatrader platform.
- Navigate to “Indicators.”
- And pick”Sonic Wave Forex Day MT4 Trading Strategy” template to apply it on the chart.