FOREX PROFIT FUSION TRADING SYSTEM

Forex Profit Fusion Trading System Summary

System Overview:

  • Name: Forex Profit Fusion
  • Performance:
    • Demo Round Profit: 383%
    • Win/Loss Ratio: 65 Wins/5 Losses
    • Ranked: 2 in SFTC v.6 Demo round
  • Type: Reversals/Divergence and Scalping
  • Time Frames:
    • Main: 30 minute
    • Trend Direction: 4 hour
  • Indicators Used:

Main Chart:

  • Bollinger Bands
  • 5-period Smoothed Moving Average (High, Red)
  • 5-period Smoothed Moving Average (Low, Blue)
  • Fibonacci Pivots THV

Indicator Window 1:

  • 21-period CCI (Light Sea Green, Thickness 2)
  • 20-period Bollinger Bands (Yellow, Deviations: 2, Apply to First Indicator's Data)
  • 5-period Smoothed Moving Average (Red, Thickness 2, Apply to First Indicator's Data)

Indicator Window 2:

  • Volumes (Value Up: Green, Value Down: Red, Thickness 2)

Buy and Sell Rules

Sell Trade Entry Rules:

  1. Check Trend:
    • On the 4-hour chart, ensure the SMMA channel is below the middle Bollinger Band, indicating a downtrend.
  2. Identify Resistance Area:
    • On the 30-minute chart, wait for price to approach a resistance area.
  3. Check for Price Action Patterns or Divergence:
    • If no price action patterns are present, check for divergence between Price and the CCI/BB/SMMA window on the 30-minute chart.
  4. Confirm Volume:
    • Ensure high volume with the Volume bar forming significantly higher or consecutively higher peaks.
  5. Enter Trade:
    • Enter a new trade position as soon as the candlestick pattern or divergence pattern has completed.
  6. Set Stop Loss:
    • Place stop loss above the most recent swing high.
  7. Trail Stop Loss:
    • Use the SMMA channel or middle Bollinger Band to trail the stop. Alternatively, exit manually when the Bollinger Band on the CCI begins to contract.

Buy Trade Entry Rules:

  1. Check Trend:
    • On the 4-hour chart, ensure the SMMA channel is above the middle Bollinger Band, indicating an uptrend.
  2. Identify Support Area:
    • On the 30-minute chart, wait for price to approach a support area.
  3. Check for Price Action Patterns or Divergence:
    • If no price action patterns are present, check for divergence between Price and the CCI/BB/SMMA window on the 30-minute chart.
  4. Confirm Volume:
    • Ensure high volume with the Volume bar forming significantly higher or consecutively higher peaks.
  5. Enter Trade:
    • Enter a new buy trade position as soon as the candlestick pattern or divergence pattern has completed.
  6. Set Stop Loss:
    • Place stop loss below the most recent swing low.
  7. Trail Stop Loss:
    • Use the SMMA channel or the middle Bollinger Band to trail the stop. Alternatively, exit manually when the Bollinger Band on the CCI begins to contract.

Additional Notes:

  • This system is suited for intermediate to advanced traders due to its complexity.
  • It involves trailing stops and dynamic take profit levels.
  • Suitable for trading reversals, regular and hidden divergence, and scalping.

The Forex Profit Fusion system, with its combination of standard MT4 indicators and a unique market reading approach, offers a high win/loss ratio and robust trading opportunities, making it a powerful tool for experienced traders.