Enhanced Trend Analysis Concept for TOS and MT4

One of the first things that I learned in the trading industry was to always follow the trend. When starting out, I never seemed to have the patience to wait for my entries, and usually hit my stop loss. A common newbie mistake is looking for those potential big reversals, and in doing so many times having a trade go heavily against you. Once I quit trying to do that and simply bought on dips in an uptrend and sold on rises in a downtrend, I finally saw a serious change in my monthly profit.

Since then, I have created some amazing expert advisors and strategies which are low risk and high reward by trend following. They are my every day strategies that truly bring in the highest profit with little risk involved. Slick Trade members love these strategies and with the new EAs released, they can be notified of a trade setup, or just auto trade their accounts, which is pretty amazing.

I am going to share with you my Enhanced Trend Analysis concept which is a great strategy for beginners or advanced traders. The setup is simple and easy to follow and can be used on any trading platform. I will show you how to use it on MetaTrader 4 and Thinkorswim.

STRATEGY NAME – Enhanced Trend Analysis Concept

CHARTING PLATFORM – Any charting platform

FOR USE ON – Forex and Nadex

FILE PACK TO DOWNLOAD – CLICK HERE

EXPERT ADVISOR FOR THIS STRATEGY? – No

INDICATORS –

• MACD (12, 26, 9)
• Exponential Moving Averages 7, 14, 31 and 200
• RSI (14, 70, 30)
• Heiken Ashi (optional)

RULES –

Let’s start with the basics. If you are using Thinkorswim, you will need to complete the following steps:

1. Open a new chart
2. Right click on the chart and choose Studies > Edit Studies
3. Add the MACD (12, 26, 9)
4. Add Exponential Moving Averages 7, 14, 31 and 200
5. Add the RSI (14, 70, 30)

If you are using MetaTrader 4, you will need to complete the following steps:

1. Open a new chart
2. File > Add indicators
3. Add the MACD (12, 26, 9)
4. Add Exponential Moving Averages 7, 14, 31 and 200
5. Add the RSI (14, 70, 30)

(Note – It is optional to add Heiken Ashi candles as well, but not required)

There are 4 rules to this concept

1. Watch your chart on any timeframe – I prefer 15 minute for Nadex and 15 min or H1 for Forex
2. You want to watch for the MACD lines to cross or weakening of the bars, showing the start of the trend reversal
3. Watch for the 7 and 14 moving averages to cross
4. Wait for the candle to be below the 7 moving average on a sell or above the 7 moving average on a buy position before entering the trade
5. Where is price in relation to the 200 SMA? Stick to the overall trend my friend…if the trend is up, buy on dips, if the trend is down, sell on rises.

Adding the RSI or Relative Strength Index, along with MACD can really help to ensure solid trades.  I have found that the combination of these two sets up some beautiful until expiry Nadex trades in addition to your forex trades.

What you are looking for is the RSI line to break the 70 or 30.  This is displaying that the price has been overbought or oversold.  Upon re-entry, you want to watch the MACD and see if it is displaying the same trend direction.  If both the RSI and MACD are displaying the same trend direction, then you would place an order on Nadex to sell at the top of the candle that entered back into the RSI 70 line, or a buy at the bottom of the candle that reentered the RSI 30 line for a top of the hour trade.

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