There are many Forex trading strategies that people come around on the internet while learning to trade. Each of those systems has several pros and cons that are analyzed by traders and used accordingly. Forex profit guard system works with a similar principle.
What Is It?
A popular MetaTrader 4 platform strategy, many traders make benefits from this system. Compatible with any currency pair, the system works the best in the long term H1 time frame, where it can be used to trade round the clock. For lower time frames, the European session is a profitable time.
The method follows the wave* trading and trend** following systems.
*A wave is the action of market peak, fall, and peak again for an indefinite amount of time.
**The trend, on the other hand, is the way in which the market is currently moving, whether up or down.
When is the European session?
This session starts with trading in London, Zurich, Frankfurt, and Paris. London is one of the busiest Forex trading countries in the world, followed by New York.
How Does The Strategy Work?
Here’s how you can use Forex profits guard system to buy and sell foreign exchange and make calculated profits.
In a long time frame, traders should look for the following indicators to make a buy.
A painted green arrow will show an upward market trend.
By enabling the WA Explosion indicator, traders can now wait for it to turn green too.
Another gage, the T3 2ColorHisto also becomes green.
Traders should make an exit when any of the two gages become red. That is the cue to sell your securities.
While dealing in a short position, here is what traders should follow according to the Forex profit guard system.
Instead of buying when indicators are green, traders should buy when both indicators are red and an arrow shows down movement. The exit strategy remains the same with color change in any of indicating gages.
The best policy to follow while buying is to stick to the system. It doesn’t matter which of the indicators change color first; in the end, it always means a purchasing action.
Also, use pivot points along with the support and resistance levels as targets. When price escalates above pivot line, opt for a buy. Remember, your target is the resistance level. During a sell, notice when price falls below pivot and target for the support level.
Additional Things to Follow:
Traders can look into different books and articles on guard system that will help them understand all the driving factors better. It is always good to be absolutely sure about how Forex profit guard system works before incorporating it as a part of one’s profit strategy.
Also, using trusted platforms like MetaTrader 4 or 5 will give you an additional learning edge over others. To make trading easier, you can also use expert advice systems, however, always be adept at improvising within your plan when trading on a volatile market like Forex.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.