The FVT trading system was developed in the year 2015. The trading system is quite comprehensive and very easy to use. It doesn’t require much thinking and a lot of calculations since it employs a number of indicators to help the trader in making decisions on when to place an order and when to close the order. It is a very profitable trading system and its efficiency has been proven to be about 90%.
It has a double filtering system making its signals very dependable and something to go by whenever you are trading with it.
This trading strategy is best for the traders that do intraday or swing trading. It gives best results when used on timeframes higher than 15 Minute.
Also other currency pairs, this trading system can also be used to trade indices and commodities
This trading system uses a combination of twelve indicators: T3 Clean, Moving average 200 period, Ema 89 close, Ssl Fast, EMA 21 close, 2 indicator, Signal bars, Strength Candles > 60, FVT Signal, 1 indicator, volatility qualitiy nrp and EMA 55 close.
The T3 Clean, volatility qualitiy nrp, Moving average 200 period, Ssl Fast. , Ema 89 close, EMA 21 close and the EMA 55 close are optional and they are not included in the default settings of the template. The trader have to insert them to the trading chart if he or she requires to use them.
Fig.1. The FVT trading system.
There are two custom templates for this trading system which are the H1_dtemplate_FVT and the H1_template_FVT. The only difference is the number of indicators displayed when using either of the two templates.
We shall look at the work of each indicator and how it adds to the usability of this trading system.
- T3 Clean indicator
This appears as a yellow dotted line when it is inserted into the trading chart. It is a trend following indicator and works in the same way as the MAs. It shows the trend of the market prices.
- Moving average 200 period
It is the continuous purple line that is displayed on the chart when using the template. This shows the general trend of the market prices.
- Ema 89 close, EMA 55 close and the EMA 21 close indicators
All this indicators are all Exponential moving averages and the only difference between them is the periods that the use as the color by which they are displayed on the chart. The EMA 21 line is brown, the EMA 55 is aqua and the Ema 89 is red. They all help in showing the trend direction.
- Signal bars
This are the bars that are displayed on the separate FVT signal indicator chart below the main chart. This bars change their color between brown and aqua. The brown color shows a down trend while the aqua shows an uptrend.
- Strength Candles > 60
This compares the strength sell and buy forces of the currencies that are in pairs and determines which one is stronger than the other. It generates horizontal bars on the left side of the chart showing the strength comparison for the current currency pair in all the timeframes. When giving its signal, it shows a red and aqua sections that displays sell and buy respectively and hence showing when the sell strength is higher that the buy.
- FVT signal
This is displayed on a separate chart below the main chart and it has signal bars, a white line and two lines that oscillate about a purple line. These two line that oscillate around a purple line are the 1 indicator and 2 indicator.
- volatility qualitiy nrp
This is not set to display on the template and it has to be manually inserted if it is to be used. It is displayed on a separate chart and it generates a line that changes its color between aqua and purple. When the color is purple in color, the market prices are headed down and when the line is aqua, the market prices are headed up.
- Ssl Fast. (optional)
The Ssl Fast is displayed on a separate chart as a continuous line whose color changes between orange and aqua. When the color of the line is orange, there is a down trend and when it is aqua, there is an uptrend.
Rules to apply when using the FVT Trading System
Although the trading strategy uses a lot of things and a lot of stuff is displayed on the chart, on two things are of paramount importance when it gets to placing of trades.
For the trader to place a buy order, there have to be a blue up arrow that has formed. Also the FVT signal has to be aqua in color. But for you to make sure that it is safe to place the buy, you should cross check to see that all the other indicators says buy.
For the trader to place a sell order, there have to be a red up arrow that has formed. Also the FVT signal has to be brown in color. But for you to make sure that it is safe to place the buy, you should cross check to see that all the other indicators says sell.
NB: you should exit trades when an opposite signal is given.
Fig.2. Placing orders using the FVT trading system.
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