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How to Trade Using the Forex Buy Sell Trading System

The Forex Buy Sell Trading System is a rules-based approach to trading currencies in the foreign exchange (forex) market. This system aims to identify high-probability buy and sell signals to capitalize on short-term price movements.

Forex Buy Sell Trading System

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Overview of the Forex Market

The forex market is a global decentralized market for trading currencies. It operates 24 hours a day, five days a week. The daily trading volume exceeds $6 trillion, making it the world’s largest financial market.

Currencies are traded in pairs (e.g. EUR/USD, GBP/USD). The first currency is called the base currency, while the second is the quote or counter currency. The forex price represents how much one unit of the base currency is worth in the counter currency.

Key Benefits of the Forex Buy Sell Trading System

  • Generates clear buy and sell signals for high-probability trades
  • Combination of indicators removes guesswork and provides confirmation
  • Designed for scalping and day trading strategies
  • Works well with major, high-liquidity currency pairs
  • Easy to implement with basic technical analysis knowledge

How the Trading System Works

The Forex Buy Sell Trading System utilizes a combination of the Super Trend indicator and Relative Strength Index (RSI) to identify profitable opportunities in the market.

The Super Trend calculates support and resistance levels and generates basic buy and sell signals. The RSI acts as a confirmation tool to provide additional confidence in the Super Trend signals.

This combination removes a lot of the guesswork from trading. It provides high-probability entries for short-term trades while also avoiding false signals.

Rules for Long (Buy) Signals

A long signal occurs when the following conditions are met:

  • The Super Trend indicator plots a green bar (indicating an uptrend)
  • The RSI crosses above 30 (emerging from oversold territory)

The long position is opened as soon as a new candle starts after the above criteria are met.

The stop loss is placed just below the most recent swing low. Take profit levels can be set at a risk/reward ratio of at least 1:2.

Rules for Short (Sell) Signals

A short signal occurs when the following conditions are met:

  • The Super Trend indicator plots a red bar (indicating a downtrend)
  • The RSI crosses below 70 (emerging from overbought territory)

The short position is opened as soon as a new candle starts after the above criteria are met.

The stop loss is placed just above the most recent swing high. Take profit levels should maintain a risk/reward ratio of at least 1:2.

Tips for Effective Implementation

Here are some tips to use the Forex Buy Sell Trading System effectively:

  • Stick to major currency pairs like EUR/USD and GBP/USD that tend to trend smoothly. Avoid choppy pairs.
  • Use a 15-minute or 1-hour timeframe to provide reliable signals. Do not use lower timeframes.
  • Be patient for high-probability setups to emerge. Do not force trades when no signal appears.
  • Always utilize proper risk management with stop losses and risk/reward ratios.

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The Benefits of Discipline and Consistency

The Forex Buy Sell Trading System for MetaTrader 4 provides clear, objective buy/sell signals. By consistently applying the rules of the system, traders can profit over time. No system wins 100% of the time, but by maintaining discipline traders give themselves an advantage.

Some key benefits include:

  • Removes emotional interference that causes poor trading decisions
  • Provides confidence to stick with high-probability trades
  • Loss-making trades are kept small through stop losses
  • Profitable trades can capture large gains due to favorable risk/reward ratios

By sticking to the system, traders give themselves the best chance of long-term profitability. This requires patience, discipline, and consistency in applying the rules.

Forex Buy Sell Trading System Conclusion

The Forex Buy Sell Trading System offers traders an objective method to identify high-probability trades. By combining indicators such as the Super Trend and RSI, much of the guesswork is eliminated from trading. This system works especially well for scalping and day trading the major forex pairs.

To succeed over time, traders must show discipline in waiting patiently for signals to emerge. The rules of the system guide all aspects of trading, from determining entries and exits to managing risk on each trade. By maintaining consistency in applying a strategy, traders give themselves an advantage by eliminating emotional interference and benefiting from favorable risk/reward ratios.

Over time, traders can refine and improve their implementation of the system. But having a rules-based approach is the first step to long-term profitability.

Author: Dominic Walsh
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I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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