The Buzzer Trading Strategy is a strategy that indicates exactly when to trade and when it is time to exit the trade.
Trading is about taking high probability trades. One of the best ways to filter out low probability trades and take only high probability trades is to trade in the direction of the long-term trend. By doing so, the chances of a profitable trade increases. But that is just the first part of the equation.
After filtering out trades that does not agree with the long-term trend, the next thing to do is to have a precise entry. There are many methods for taking a precise entry. However, one of the better ways to do this is to make use of shorter-term trend indicators that work well together and wait for these indicators to agree with each other. This is called confluence.
This strategy makes use of these concepts. Filtering for the long-term trend and using confluence of the short-term trend as the entry point using indicators.
The Octopus Indicator
The octopus indicator is a custom indicator which is generally used for trend following or trend reversal strategies. It is an indicator that makes use of crossovers between two moving averages, however, instead of being printed on the price chart itself, it is printed on a separate window. It prints bars to indicate the direction of the trend. Green bars are for bullish market conditions while red bars are for bearish market conditions. Because of this feature, the octopus indicator is somewhat binary in nature. The information it gives is just either a bullish or bearish bar, plain and simple.
The Buzzer Indicator
The buzzer indicator is another custom indicator which indicates the short-term trend. It also makes use of modified moving averages as a means to generate signals. Although the exact formula behind it is unknown, looking at how it behaves, it does seem to have good entry signals on the short-term trend.
It generates entry signals by drawing a line on the price chart. Whenever the line starts to drop, it changes to color red. It continues with the same color until the line changes direction. If the line starts to rise, it starts printing a lime colored line and continues until the line changes direction once again.
Trading Strategy Concept
As stated earlier, this strategy is about taking trades that agree with the long-term trend. To do this, we will be using the 200 Exponential Moving Average (EMA). The 200 EMA is a commonly used moving average that indicates the long-term trend. We will be judging trend based on the location of price in relation to the 200 EMA. Aside from that, we would also be looking at how the 200 EMA is sloping. The slope of the 200 EMA should also be in the direction of the trend.
Then, we will be looking to have a confluence of the short-term trend using indicators.
The first short-term indicator will be the buzzer indicator. The color of the buzzer indicator should be in agreement with the direction of the 200 EMA.
Then, we have the octopus indicator. Since the buzzer indicator tends to react faster than the octopus indicator a bit, the octopus indicator would somehow be the actual trigger. The trade should be taken when the octopus indicator changes color, agreeing with the 200 EMA and the buzzer indicator.
In order to have a quicker exit, prior to the actual reversal, we will be making use of the buzzer indicator. The trade should be closed as soon as the buzzer indicator reverses.
The stop loss would be placed on fractals which we will consider as short-term supports and resistances.
200 EMA (Saddle Brown)
Timeframe: 15-minute chart only
Currency Pair: any
Trading Session: preferably trading sessions with high volume
Buy (Long) Trade Setup
Price should be above the 200 EMA
The buzzer indicator should be printing a lime line indicating that the short-term trend is bullish
Open a buy trade as soon as the octopus indicator starts printing green bars agreeing with the buzzer indicator’s direction
Set the stop loss on the fractal below the entry candle
Close the trade as soon as the buzzer indicator changes to color red
Sell (Short) Trade Setup
Price should be below the 200 EMA
The buzzer indicator should be printing a red line indicating that the short-term trend is bearish
Open a sell trade as soon as the octopus indicator starts printing red bars agreeing with the buzzer indicator’s direction
Set the stop loss on the fractal above the entry candle
Close the trade as soon as the buzzer indicator changes to color green
This simple strategy is all about confluence of the short-term trends. By making use of these complimentary indicators, we get to have a high probability trade.
There will be some instances when the short-term trend doesn’t last long and would reverse after a short push in the direction of the trade. For this reason, it is best to move the stop loss to break-even if the trade is starting to go in your direction. However, don’t trail the stop loss to soon as it could sometimes be prematurely hit before price starts to rally in the direction of the trade.
Forex Trading Strategies Installation Instructions
Buzzer Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Buzzer Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
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How to install Buzzer Forex Trading Strategy?
Download Buzzer Forex 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
Right click on your trading chart and hover on “Template”
Move right to select Buzzer Forex Trading Strategy
You will see Buzzer Forex Trading Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download:
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