Max trend binary system is a trading system developed for scalping. It is a reliable scalping system if used in a proper way. No systems are reliable if applied improperly. This system generates buy and sell signals on the basis of the moving averages and the color of Heiken Ashi bars.
The technical indicators used in Max trend binary system are:
MTH fast line,
Brian Trend 2 sig alert,
Brian Trend 3 sig alert,
Max Trend MA,
Max Trend Heiken Ashi,
Max Trend signal,
Max Trend Price,
Max Trend signal 2,
Important thing to know when using Max Trend Binary system is that the chart you see is not the ordinary chart; it is a Heiken Ashi chart. Although the Heiken Ashi chart looks similar to the normal candlestick chart, it is not. Different formula is used to calculate the OHLC of a Heiken Ashi bar. Heiken Ashi candle is the averaged form of the normal candlestick bar. Heiken Ashi chart is extremely useful for making the charts more readable. These kinds of charts are smooth and noises are not present. Trends can be easily figured out using such charts.
There are five elements to watch in this strategy. In order to have the high probability of winning a trade all these components should be combined. So the five components of Max Trend Binary system are:
1. Heiken Ashi chart
It is crucial to follow the colors of the Heiken Ashi bars. When you see couple of green Heiken Ashi bars in an uptrend it indicates that probably the uptrend has resumed and the opposite is true in down trending market. You wouldn’t be entering long trades when you see red Heiken Ashi bars and short when you see green bars.
2. Green and red dot
Green dots appear below the price because they indicate the buying opportunity in the market. However, seeing a green dot necessarily doesn’t mean that you should immediately jump in to the long trade, you should wait for the other component’s confirmations. Similarly, red dots appear above the price. Red dots indicate that the shorting opportunity is coming soon.
3. Three Moving Averages
On the chart we can see a Bollinger band like three-moving averages. Usually lower moving average works as a support while the upper moving average works as a resistance. Most importantly, we have a mid term moving average which moves between the upper and the lower bands. The color of this middle moving average changes with the change in the trend. The red color of the moving average indicates the downtrend while green color indicates the uptrend.
4. Max trend price Indicator
On the bottom of the chart, we can see an indicator which looks like the volume indicator. This indicator indicates how strong the trend is. When the trend is down the top of these indicators are polished in red color while it remains green when the trend is up.
5. Multitaymfreymny Indicator
This indicator is located at the top right of the chart window. This indicator summarizes the data of most popular technical indicators (like MACD, EMA, and STR) from various time frames. This actually saves the time of a trader since you don’t have to jump in to other time frames to see what’s going on there.
Buying Condition Using Max Trend Binary System
This is a real time AUDNZD 15 min chart. Let us analyze the chart using Max trend strategy.
- The major trend should be up i.e. price should be trading above the lowest moving average.
- A green dot should appear on the chart.
- The mid moving average should be green in color. If the color of the middle moving average is red even after the formation of a green dot, you should wait for the MA to be green.
- The max trend price indicator at the bottom should not be capped with red color.
- The Multitaymfreymny indicator on the top right should show the green signals in most of the time frames in order to have the high probability of winning a trade.
Stop loss: Stop loss should be placed on the level of the lowest moving average.
Take profit: Hold the trade unless you see 3 bear Heiken Ashi bars.
For selling, just the opposites of the above rules are applied.
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