The video shares a profitable strategy using the Trader XO macro Trend scanner, macd, and moving average indicators to enter buy/sell trades with specific conditions to avoid fake signals. It’s important to use a zero spread broker for better profits. Examples of trades using this strategy are shown on different time frames of the Euro USD and GBP USD currency pairs.

The Three Indicator Forex Trading Strategy

Introduction

In this article, we will be discussing a profitable and simple forex trading strategy that only requires three free indicators. This strategy is effective in all time frames and can help traders make consistent profits.

Setting Up the Indicators

To begin, traders should open TradingView and select the EUR/USD currency pair, then set the time frame to five minutes. The three indicators used in this strategy are:

1. Trader XO Macro Trend Scanner
2. Moving Average Convergence Divergence (MACD)
3. Moving Average Exponential (MA)

Trader XO Macro Trend Scanner

The Trader XO indicator is a simple trading indicator that gives clear buy and sell signals. It contains two moving average graphs, with the top graph representing the slow moving average and the bottom graph representing the fast moving average. When the two lines cross, the indicator gives a signal. A downward crossing signals a bearish or sell signal, while an upward crossing signals a bullish or buy signal.

Using Trader XO Macro Trend Scanner

To use the Trader XO indicator, traders should look for two conditions:
1. A bearish or short signal with a Candlestick below the two lines
2. A bullish or long signal with a Candlestick above both moving average lines

When both conditions are met, traders can enter a trade at the close of the trigger candle and make a profit. To illustrate the effectiveness of this indicator, let’s look at some examples in different time frames.

Using Trader XO Macro Trend Scanner on Different Time Frames

Even on a 30-minute time frame, the Trader XO indicator gives us a sell signal at the ideal time. Taking a sell trade at this signal would have lead to a huge market movement and significant profit. Similarly, when a buy signal appears and a Candlestick closes above both moving average lines, traders can enter a long buying position and capitalize on significant market movements.

The MACD Indicator

While the Trader XO indicator is effective, it can produce false signals when the market enters a ranging zone. To filter these signals, traders can add the MACD indicator to their chart.

Setting up the MACD Indicator

To use the MACD indicator, traders should change the fast length option to 26 and the slow length to 100. It contains histograms, a signal line, and a MACD line. In the style tab, traders should disable the MACD and signal options.

Using the MACD Indicator

The MACD histogram is below the zero line when the market is in a downtrend movement and only allows sell trades. If the histogram is above the zero line, it indicates an uptrend movement that requires only buy trades. By combining these two indicators, traders can accurately filter false signals and only enter valid trades.

The Moving Average Exponential Indicator

The moving average exponential indicator shows the direction of the market’s trend. When the price is above the moving average line, it indicates a market trend that is upward. When the price is lower than the moving average line, it indicates a trend that is downward.

Using the Moving Average Exponential Indicator

To enter a sell trade, traders should wait for a sell signal from Trader XO, confirm downtrend movement with the MACD histogram below the zero line, and ensure that the trigger Candlestick closes below the moving average 200 line. Similarly, to enter a buy trade, traders should wait for a buy signal from Trader XO, confirm uptrend movement with the MACD histogram above the zero line, and ensure that the trigger Candlestick closes above the moving average 200 line.

Conclusion

By combining these three indicators, traders can execute precise and profitable trades in all time frames. However, traders need to use a zero-spread broker to ensure optimal profit. With this strategy, traders can simplify their trading process and achieve consistent profits in the forex market.