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Re: XARD - Simple Trend Following Trading System

xard777, Mon Jul 15, 2024 5:49 am

Here is a summary of previous Fractal/FVG trading strategy

**1. Major Support/Resistance Identification via Square Semaphore (576):**
- Utilize the Square Semaphore (576) to pinpoint significant pivot levels that dictate the overarching market structure. These crucial pivot points marked by Square Semaphores act as essential reference points for potential trend reversals or continuations.

**2. Baseline Establishment and Confirmation with 2nd Dot Semaphore (36):**
- Following the appearance of a Square, monitor for the emergence of the 2nd Dot Semaphore (36) to affirm the baseline. This step solidifies the main trend direction, serving as a foundation for subsequent trade decisions.

**3. Dynamic Trade Direction Determined by EMA Crossovers:**
- Implement Exponential Moving Averages (EMAs) 55 and 13 on your chart to gauge trend momentum.
- Observe the behaviour of EMA 13 relative to EMA 55:
- **Bullish Signal:** EMA 13 crossing above EMA 55 suggests upward trend momentum.
- **Bearish Signal:** EMA 13 crossing below EMA 55 indicates downward trend momentum.

**4. Trade Execution Leveraging Fair Value Gaps (FVGs):**
- Identify Fair Value Gaps (FVGs), which are zones of price inefficiency characterized by reduced trading activity.
- Utilize custom MQL4 indicators or Volume Profile to spot these gaps accurately.
- Execute trades within the FVGs, aligning with the trend direction confirmed via EMAs:
- **Buy Limit Orders:** Position these within a bullish FV G below the current market price.
- **Sell Limit Orders:** Set these within a bearish FVG above the market price.
- Apply a stratified approach to order entries within the FVG for effective price averaging.

**5. Comprehensive Risk Management:**
- Employ physical stop-loss orders at major pivots to protect the overall trading fund from significant market swings.
- Utilize virtual stop-loss orders at minor pivot points to shield individual trades, minimizing exposure to rapid market fluctuations.

This strategic framework harnesses the synergy of Semaphore signals for structural market analysis, EMA crossovers for fluid trend identification, and the tactical use of Fair Value Gaps for precision entries. It's tailored to provide a robust platform for trading, catering to various market conditions and adjusting dynamically to meet different risk preferences. Proceed with this methodical approach to navigate the markets effectively, setting your trades for success. Happy trading!
Xard777
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