Those who are unfamiliar with the area may find forex trading to be an exceptionally difficult and complicated undertaking. However, it may be a very lucrative endeavor with the appropriate tools and methods. One method that works well for many traders is the use of Forex MT4 trading signals. These signals are indicators that help traders make wise selections by offering insights into market movements. This post will discuss how to create trading strategies that are both profitable and successful by utilizing three important indicators. You may increase your chances of success as a forex trader and obtain a better understanding of the market by utilizing these indicators.

The Bollinger Bands

We will open a 1-hour chart to start our trading approach since it gives us a more comprehensive picture of the market and makes it easier to spot possible trade chances. We will compute volatility as part of our research using the popular Bollinger Bands indicator.

STEP 1:

• Open a 1-hour chart.
• Red Arrow shows on the Bollinger Band
• Get prepared to stop selling the salmon and orange
• Bearish Heiken Ashi touches the band at the end of the Bolinger Band.
• Stop selling after the first light green Heiken Ashi show.

Buy Conversely,

The standard deviation from the moving average is used by the Bollinger Bands to plot a range of price levels. Price movement that approaches or crosses the top band may suggest that the market is overbought. However, it may indicate that the market is oversold if the price falls below or approaches the lower band.

As part of our strategy, we will look for a red arrow that can point to a selling opportunity using the Bollinger Band. When the price approaches or crosses below the Bollinger Band’s lower range, a signal is generated that may suggest an oversold state of the market. We may create a profitable strategy and make well-informed trading selections by closely monitoring these signals.

Heiken Ashi indicator MT4

The Heiken Ashi indicator is used in trading to reduce noise and give a more accurate picture of price movements. To plot fresh candlesticks, the average of each candlestick’s open and closed prices is calculated. As a result, the charts appear smoother and are simpler to understand.

Step 2: BUY ARROW CONSIDERATION

If a bearish salmon or orange candle appears for a buy arrow, avoid initiating a buy trade. Instead, wait for a bullish candle to appear below and in between the Bollinger Bands. For a sell arrow, do the opposite. 

CUSTOM INDICATORS APPEAR IN BUY FOR BUY AND RED FOR SELL.

We will pay close attention to the candle’s color variations to apply the Heiken Ashi indicator to our trading strategy. To be more precise, we will hold off on entering a sell trade until a bearish Heiken Ashi candle (orange or salmon in color) touches the upper band of the Bollinger Band indicator. This is because a bearish candle touching the upper band suggests that a price decline is probably imminent, which is an excellent moment to sell.

On the other hand, we can think about making a buy trade if a bullish candle (colored green or blue) appears between and below the Bollinger Bands. This is because a bullish candle in this region suggests that a price rise is probably imminent, making it an excellent moment to buy.

It’s important to remember that if a bullish candle is forming, we should not trade on the sell side because this indicates that the price is probably going to climb. Likewise, if a bearish candle appears, we should refrain from purchasing because this indicates that the price is probably going to drop. We may improve our chances of success and make better trading judgments by adhering to these rules.

Trend-Following:

Trend-following is a crucial component that must be taken into account when creating a profitable trading strategy. Additional Forex MT4 indicators are frequently used by traders to determine the main trend in the market. Traders who follow the trend have a higher probability of success. For example, we should concentrate on purchasing deals if the market is trending upward. On the other hand, we ought to give selling offers priority if the market is trending lower.

On a 5-minute chart, the red line marks the start of the market for a buy trade.

Trend-following indicators, like trend lines or moving averages, are advised to make sure we can trade in lockstep with the trend. With the aid of these indicators, we can determine the direction of the market and make well-informed trading decisions.

Two red lines mark our strategy on a 5-minute chart and a 1-hour time frame. Vice versa

Using the previously mentioned trend-following strategy, let us examine an example of a buy transaction. Let’s say the market opens with a red line and we are examining it on a 5-minute chart. In this instance, the boundaries of our strategy will be established by waiting for two red lines to appear consecutively on a 5-minute chart, signifying a one-hour time frame.

Activated Buy EA to scalp the market, buying stops where arrows show.

We will wait for a bullish candle to form below and in between the Bollinger Bands before entering a buy trade. This is because a bullish candlestick formation, which is in line with the trend and other indications, indicates that an upward movement in price is anticipated. We can confidently enter a trade once this signal arrives because we will be trading in line with the market trend.

Conclusion:

To sum up, traders may find Forex MT4 trading signals to be a useful tool. Traders can develop successful strategies. the Forex market buying and selling may be challenging, particularly for beginners. However, it can be a profitable venture with the right resources and strategies. Many traders find trading signals for Forex MT4 helpful. In this article, we will explore how to use three indicators to create profitable trading strategies.

📍How to install

• Register with Exness Broker to download the MT4 platform.
• Open an ECN account through the Exness Broker.
• Unzip and download the Best Scalping Trading Strategies on MT4.
• Follow this step to install the download file on the MT4 platform: “File/Open Data Folder/MQL4/Indicator.”
• Run a strategy tester and a demo live account before trying on a real account.