It’s been a while since I last posted on Forex Factory. After some time away, I’m back with a fresh perspective and a new Forex strategy I’ve been developing. It combines auto trend channels, ADXVMA, supply & demand zones, multi-timeframe highs/lows, and a stochastic pullback signal for precise entries. I’m primarily focusing on trading the daily chart to capture cleaner trends and reduce market noise. I’m eager to share progress, exchange ideas, and get your feedback to improve it further. Looking forward to reconnecting and learning together.
The core of this FX strategy is to trade in the direction of a strong, clearly defined trend, confirmed by auto multi-timeframe trend channels that must align in confluence. Entries are timed based on pullbacks, with the ADXVMA indicator used to verify trend direction and validate strong pullbacks alongside the stochastic pullback arrow indicator. Supply and demand zones serve as key profit targets, while the multi-timeframe High-Low indicator helps identify significant support and resistance levels across different timeframes. These levels help traders identify optimal entry and exit points, as well as areas where smart money is likely driving market direction.
Below is a prime example of a desired long entry, marked by the golden arrow on the chart. Opposite for short trades.
Weekly and Daily Trend Channels:
Both the weekly and daily auto trend channels align in confluence, showing a strong green uptrend.
ADXVMA Pullback Zone:
Price pulls back between the ADXVMA channels, during which the price action turns grey, indicating a temporary pause in trend momentum.
Stochastic Pullback Arrow:
During this grey zone pullback, the stochastic pullback indicator prints an up arrow, signalling a potential oversold condition.
This must occur while price remains within the grey zone, and at no point should price enter the red during this setup.
Entry Trigger:
Price then swiftly returns into the green zone, prompting a long entry on the first green candle.
Support Rejection Confirmation:
Price had recently tested and rejected the 90-day or yearly low level, adding strength to the long bias.
Trend Confirmation Tools:
The Multi-Timeframe ADX Tor indicator shows both weekly and monthly trends are bullish. The Signal Bars indicator supports this directional bias.
Monthly Candle Alignment:
The monthly candle is bullish—a key condition we look for to ensure alignment with broader market momentum.
Early Exit Criteria (Risk Control):
If price moves immediately against the trade and re-enters the grey zone of the ADXVMA channel (signalling loss of directional momentum), the position is closed. This helps avoid sitting through weak or failed setups.
Continuation & Profit Targets:
If price moves in your favour, the trade is managed by watching for key reaction points. You can hold the trade until:
- Price reaches and reacts to a clearly defined supply or demand zone (depending on trade direction),
- Or price tests a 90-day or yearly high/low level — both of which act as strong potential reversal or profit-taking areas.
Stop Loss Placement:
Stop loss levels are flexible based on your risk tolerance. A common approach I use is 2× ATR (Average True Range) from the entry candle — this adapts dynamically to market volatility while providing room for natural price movement.
I'm completely open to new ideas, indicators, or methods—anything fellow traders believe could help improve or evolve this system. This isn’t a locked-down thread, and while I understand that could invite a bit of chaos, I welcome it.
Indicator Credits & Permissions
I'm currently using several free indicators from FXSSI.com as part of this system. I reached out to their support team to confirm whether it was okay to share these tools for download. They kindly confirmed that sharing is permitted as long as proper credit is given to the original source. Accordingly, I’ll be providing links and naming FXSSI.com as the original provider for transparency and respect to their work. Just to re-iterate, these are the FREE indicators, and doesn't apply to commercial content.
FXSSI Auto Trend Channels
https://fxssi.com/auto-trend-channels
FXSSI MTF High/Low Indicator
https://fxssi.com/mtf-high-low
FXSSI Supply and Demand Indicator
https://fxssi.com/supply-and-demand
Additional Indicator Credit
I also use the Stochastic Pullback indicator developed by Zoheb01, who’s contributed many high-quality tools to the trading community. His work his excellent, and I highly recommend checking out his other indicators as well.
Stochastic Pullback Indicator
https://www.forexfactory.com/thread/...reat-in-strong
Symbol Changer Profit Display Indictor
If you're having trouble getting the FX pairs to show correctly on the indicator, try the following:
Manual Pair Setup:
Go to the "User Selected Pairs" section in the indicator settings. Manually enter the Forex pairs you want to display, making sure to use the exact symbol format your broker uses (some brokers include prefixes or suffixes like EURUSD.a or GBPUSDm).
Auto Pair Detection:
Alternatively, enable the "Auto select pairs from the market watch" option under "Select Pairs Display". This will automatically populate the list using the assets currently visible in your MT4 Market Watch window. Make sure the desired pairs are visible in Market Watch (right-click in Market Watch and select "Show All" if needed).
Find the complete indicator set and template file attached to this opening post.
