Forex Counter Trend Swing Trading Strategy
Forex Counter Trend Swing Trading Strategy:
TD Sequential is designed specifically to predict potential price exhaustion and likely price reversals. This methodology is designed to become progressively less bearish as price declines and, conversely, less bullish as price advances, contradicting the behavior of most trend-following
traders. TD Sequential provides much-needed discipline and removes the emotions associated with trend trading. It also gives a distinct edge to traders who operate in size, allowing them to buy
when supply is most plentiful and to sell when demand is most aggressive.
Markets move in impulses or waves. No move, either up or down, is uninterrupted.
There is a natural rhythm or cadence associated with price movement in any market. This is apparent on any time frame, from one-minute to monthly. This rhythm can be measured
and followed according to the tenets ofTD Sequential, which has two components:
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TD Setup, which is momentum- based and compares the closing price with the close four periods earlierand,
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2) TD Countdown, which is trendbasedand compares the close with thehigh or low two periods earlier.
Buy and sell Setups
Buy Setup is a series of at least nine consecutive closes less than the close four price bars earlier. Prior to the first bar of this series, proper “initialization” must occur in the form of a TD
Price Flip. This means the close prior to setup close No. 1 must be greater than or equal to the close four price bars earlier; only then can the buy Setup process begin. (Note: For cash currency markets, use the New York close, which is 10 p.m. London time, asthe end of the trading day.) Once a minimum of nine consecutive closes less than the corresponding closes four price bars earlier are fulfilled, these bars are numbered 1 through 9. If that series is interrupted at any time prior to completion, the count is erased and the process must begin anew.
Typically, when a buy Setup is completed and “perfected,” price has a tendency
to at least react to the upside or move sideways –– i.e., after a confirmed
Setup, the prevailing downtrend corrects for a period of time. To “perfect” a buy setup, either the low of Setup bar 8, the low of Setup bar 9 or a subsequent price bar’s low must be
less than the lows of both Setup bars 6 and 7. Until that occurs, the anticipated price “hiccup,” or reaction, is less likely to occur. Asell Setup is a series of at least nine consecutive closes greater than the close four price bars earlier. Prior to the first bar of this series, a TD Price Flip must occur to initialize the Setup –– i.e., the close of the bar immediately before bar No. 1 of the prospective sell Setup must be less than or equal to the close four price bars earlier. If the Setup
series is interrupted at any time prior to completion, the bar numbers are erased and the process must start again.
Typically, when a sell Setup is completed and perfected, price has a tendency
to at least react to the downside or move sideways for a while. A sell
Setup is perfected when either the high of Setup bar 8, the high of Setup bar 9 ora subsequent price bar’s high is greaterthan the highs of both Setup bars 6 and
7. Until that occurs, the anticipated price reaction is less probable.
Countdown
Buy Countdown begins when a buy Setup has completed (once the minimum requirement of nine consecutive closes less than the close four days earlier is fulfilled). Beginning on the ninth
Setup bar, a process is applied that compares the close of that price bar vs. the low two bars earlier: If the close is less than or equal to the low two price bars earlier, then a Countdown is recorded. Just as a buy Setup series’ bars are numbered, so too are bars in a Countdown, except in a different color. Once 13 valid Countdown bars have occurred (note: Countdown bars do nothave to be consecutive), the downside price momentum is likely to be exhausted. Additionally, to ensure the price action is sufficiently low relative to the prior price action, the following qualifier is used: The low of buy Countdown bar 13 must be less than or equal to the close of Countdown bar
8.
There are two events that cancel a buy Countdown prior to completion:the application of TD Sequential to cash currency trading.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Counter Trend Swing Trading Strategy?
- Download Forex Counter Trend Swing Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Counter Trend Swing Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
