The process of trading the market is similar to any other buy and sell transaction. Transactions can be done online and do not require face-to-face meetings. The process is similar to any other business in which traders sell commodities or goods for profit. However, things happen much faster than it would have been physically. Forex trading is a perfect example of business sense.

Imagine that you were a homeowner who was interested in buying and selling houses. You knew that the house price is on the rise. What would you do? Would you buy a house to make a profit or sell the ones you already own? It is likely that you would buy houses to make a profit in future. What price should you purchase? It is not fair to buy any house at any price. To maximize your profits, you would search for the best house at the best price.

Forex trading is no different. It is best to place buy trades in a bullish market. You should not just hit the buy button at any given moment. You should buy when the market is at its lowest and then sell when it peaks.

Woodies Half-Trend Bounce Forex Trading Strategy is a trend-following strategy that trades on retracements in order to obtain the highest price.

Woodies CCI

Woodies CCI indicator, which is based upon the Commodity Channel Index indicator (CCI), is a custom indicator.

CCI is a classic oscillator that compares the current price with the average price over a time period. This allows traders to see if the price is changing relative to the historical price. This allows traders to determine if the price is significantly higher than or lower than historical prices. This could indicate that price is too long and is likely to reverse.

Woodies CCI is a modified form. It is made up of two oscillator tracks. The one represents short momentum bursts and the other represents a longer trend. The line that runs longer is connected to the histogram bars. This allows traders to visually determine if price has reversed. Negative bars signify a bearish trend. Positive bars are indicative of a bullish trend.

Half-Trend Indicator

The Half Trend indicator, which is a trend-following indicator, helps traders to identify the direction and length of the short- and mid-term trends.

It is shown as a line on a price chart. This line closely follows the price action. The trend direction will change the color of the line. A blue line represents bullish trends, while a red line represents bearish.

As a trend-reversal signal, the Half Trend indicator could be used. Traders can take trades when the trend changes in the direction they have set up.

Trading Strategy

Trend reversals can be found in moving averages. Significant moving averages can act as a dynamic area for support or resistance.

The 50-bar Exponential Moving Average is a moving average line that works well as a support or resistance. This line is usually respected by price during a trending market situation, and it bounces off it after retracements. This strategy allows traders to trade as the price bounces off of the 50 EMA area using the confluence between the Woodies CCI indicator and the Half Trend indicator.

Indicators:

• 50 EMA Green
• HalfTrend-1.02 (default setting)
• WoodiesCCI (default setting)

Currency pairs: major, minor pairs

Prefer Time Frames: 30-minutes, 1-hour and 4-hour charts

Forex Sessions: Tokyo sessions.

Trade Setup

Entry

• The price should not be below the 50 EMA line.
• The 50 EMA line should be sloping upward.
• The price should create higher swing highs than swing lows.
• The area close to the 50 EMA line should see a price retracement.
• Temporarily, the Half Trend indicator will change to red.
• Temporarily, the Woodies CCI should print negative bars.
• When the Woodies CCI prints positive bars and the Half Trend indicator turns to blue, you can place a buy order.

Stop Loss

• Place the stop loss for the fractal under the entry candle.

Exit

• When the Woodies CCI bars turn negative, close the trade.

Setup for Trades

Entry

• The price should not exceed the 50 EMA.
• The 50 EMA line should be sloping downward.
• The price should not be causing swing highs or swing lows that are lower than they currently are.
• The area close to the 50 EMA line should see a price retracement.
• Temporarily, the Half Trend indicator will change to blue.
• Temporarily, the Woodies CCI should print positive bars.
• When the Woodies CCI prints negative bars and the Half Trend indicator turns to red, you can place a sell order.

Stop Loss

• Place the stop loss on fractals above the entry candle.

Exit

• When the Woodies CCI bar becomes positive, close the trade.

Conclusion

Retracements are a proven method to trade forex markets. This is one of few trades that traders can make with a positive expectation.

However, traders still seem to lose time trading on retracements. Timing the market is the hardest aspect of trading. Even if you get the trend direction right, it is still possible to lose money if you miss the trade.

This strategy allows traders to trade the market using a non-biased trigger. Trades can be taken more confidently if there are two high-probability indicators. Although there may be some pips left over due to indicator lag, traders can trade that for greater consistency.

To find a market that is trending, use the 50 EMA line. This strategy can be used to make a profit in a market where you have found a suitable market for a retracement entry.

Forex Trading Strategy Installation Instructions

Woodies Half-Trend Bounce Forex Trading Strategy combines Metatrader 4 (MT4) indicators and a template.

This forex strategy aims to transform historical data and trading signals.

Woodies Half Trend Bounce Forex Trading Strategy allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

This information allows traders to assume additional price movements and adjust their strategy accordingly.

Forex Metatrader 4 Trading Platform

• Support available 24/7 by an international broker.
• Over 12,000 assets, including Stocks, Indices, Forex.
• Spreads and execution of orders are faster than ever with spreads starting at 0 pip.
• Start depositing now to get a bonus of up to $50,000
• Demo accounts are available to test trading strategies.

Step-by-Step RoboForex Trading Account Open Guide

How do I install Woodies Half-trend Bounce Forex Trading Strategy?

• Get Woodies Half-trend Bounce Forex Trading Strategy.
• *Copy the mq4 & ex4 files to your Metatrader Directory/experts /indicators /
• Copy the tpl (Template) file to your Metatrader Directory/Templates
• Your Metatrader client can be started or stopped.
• Choose the Chart and Timeframe in which you would like to test your forex strategy
• Right-click on your trading chart, hover over "Template",
• You can now move right to choose Woodies Half Trend Bount Forex Trading Strategy
• On your Chart, you will see Woodies Half-trend Bounce Forex Trading Strategy.

*Note that not all forex strategies include mq4/ex4 files. Some templates can be integrated with the MT4 indicators from the MetaTrader Platform.

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