Forbi system - universal set of trading strategies for different phases of the currency market. Part 2

Part 1

The Forbi system is a set of trading strategies The second part is devoted to the trading strategies based on the author's indicators. The second part is devoted to trading strategies based on the author's indicators.

Trading strategy based on the author's indicators

Once you have marked the indicators and the template in the appropriate folders, open the chart of the desired currency pair together with the template forbi_system_custom_indicators+arrows.

The schedule should look like this

Used indicators

• "Arrow" indicator

"Arrow" indicator is used to confirm entry and exit points. Never rely solely on an arrow indicator to bypass trading system rules.

• Forbi timing indicator

The indicator replaces both moving averages. The red histogram shows the difference between EMA5 and EMA10 (the bigger the bar, the bigger the difference). The histogram crossing the zero level means crossing the moving averages. The dark green line shows the difference between the current price and the EMA5. This line often changes direction, but can be very useful in some situations, such as when trading on scenario 2 "search for extrema" (if the line crosses the zero level, it means that the candle touches and crosses EMA5).

• Forbi momentum indicator

The yellow line shows the true value of the CCI indicator.

The red bar graph replaces RSI oscillator. The zero level corresponds to the 50 level of the RSI indicator. Levels 120 and -120 correspond to levels 70 and 30 of the RSI indicator.

The blue line corresponds to Stochastic. The zero level corresponds to level 50. Levels 120 and -120 correspond to levels 80 and 20.

The trading rules are the same as when using standard indicators, but the interpretation of entry points when a certain market phase occurs is much easier.

Rules of the trade

The ways to recognize a trending and uncertain market are the same as when trading based on standard indicators.

Trading on the trend market

Signals indicating the opening of a long position (buying)

• The red histogram of the Forbi timing indicator crosses the zero level from bottom to top.
• The red histogram of the Forbi momentum indicator approached the zero level and turned up or crossed the zero level and turned up.
• The blue line of the Forbi momentum indicator points upward (even better if it is near the lower level, but often the blue line will be near the 120 level).
• The yellow line of the Forbi momentum indicator approached the zero level and turned up.

Important: Sometimes the red histogram of the Forbi indicator does not cross the zero level, but just comes close to it, which indicates the continuation of trend. In doing so, pay attention to the signals of the other indicators.

Note: when we say "the yellow line of the Forbi momentum indicator approached the zero level," we mean that it came much closer than it was in 2-5 candles before. Sometimes a value of 60 or even more is seen as "approaching" compared to those values 2-5 candles before, because the indicator shows the strength of the trend.

Signals indicating the closing of a long position (fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from top to bottom.
• The red histogram of the Forbi momentum indicator crosses the zero level from top to bottom.
• The blue line of the Forbi momentum indicator crosses the 120 level from top to bottom.

Important note: in a strong trend signals (1) and (3) can be false. If the trend continues, to maximize profits, open a repeat trade if the blue line of the Forbi momentum indicator turned up and the red histogram of the Forbi timing indicator crossed the zero level from bottom to top.

Signals indicating the opening of a short position (sale)

• The red histogram of the Forbi timing indicator crosses the zero level from top to bottom.
• The red histogram of the Forbi momentum indicator approached the zero level and turned down or crossed the zero level and turned down.
• The blue line of the Forbi momentum indicator points downward (even better if it is near the upper level, but often the blue line will be near the -120 level).
• The yellow line of the Forbi momentum indicator approached the zero level and turned down.

Signals indicating the closing of a short position (the fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from bottom to top.
• The red histogram of the Forbi momentum indicator crosses the zero level from bottom to top.
• The blue line of the Forbi momentum indicator crosses the -120 level from bottom to top.

Important: To avoid false signals, it is recommended to open positions only after the close of the candle and confirmation of the signal. Otherwise, when a price break occurs, the signal may not be confirmed.

Trading in an uncertain market: scenario #1 - trading inside the fluctuations

Signals indicating the opening of a long position (buying)

• The red histogram of the Forbi timing indicator crosses the zero level from bottom to top.
• The red histogram of the Forbi momentum indicator has crossed the zero level from bottom to top and continues to move up.
• The blue line of the Forbi momentum indicator is pointing up or has just started moving up.

Important: If the blue line of the Forbi momentum indicator corresponds to buy conditions, and one of the conditions (1 or 2) is met, and the other is close to being met, purchase order should also be placed.

Signals indicating the closing of a long position (fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from top to bottom.
• The red histogram of the Forbi momentum indicator crosses the zero level from top to bottom.
• The blue line of the Forbi momentum indicator crosses the 120 level from top to bottom.

Signals indicating the opening of a short position (sale)

• The red histogram of the Forbi timing indicator crosses the zero level from top to bottom.
• The red histogram of the Forbi momentum indicator has crossed the zero level from top to bottom and continues to move downward.
• The blue line of the Forbi momentum indicator is pointing down or has just started moving down.

Important: As in the previous case, if the blue line of the Forbi momentum indicator satisfies the selling conditions, and the other two conditions are close to being met, you should place sell order.

Signals indicating the closing of a short position (the fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from bottom to top.
• The red histogram of the Forbi momentum indicator crosses the zero level from bottom to top.
• The blue line of the Forbi momentum indicator crosses the -120 level from bottom to top.

Trading in an uncertain market: scenario number 2 - search for extrema

Signals indicating the opening of a long position (buying)

• The green line of the Forbi timing indicator formed a peak (which is significantly lower or comparable to the last peak on the red histogram of the Forbi timing indicator) and returned to the zero level.
• The red histogram of the Forbi momentum indicator approached the -120 level or lower and turned up.
• The blue line of the Forbi momentum indicator is below the zero level and is pointing up or has just started moving up.
• The yellow line of the Forbi momentum indicator reached the -100 level or lower (optimally below -200) and reversed upward.

Important: If the blue line of the Forbi momentum indicator corresponds to buy conditions and one of the conditions (1, 2 or 4) is met and the others are close to being met, a buy order should also be placed.

Signals indicating the closing of a long position (fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from top to bottom.
• The red histogram of the Forbi momentum indicator crosses the zero level from top to bottom.
• The blue line of the Forbi momentum indicator crosses the 120 level from top to bottom.

Signals indicating the opening of a short position (sale)

• The green line of the Forbi timing indicator formed a peak (which is significantly higher or comparable to the last peak on the red histogram of the Forbi timing indicator) and returned to the zero level.
• The red histogram of the Forbi momentum indicator approached the 120 level or higher and turned down.
• The blue line of the Forbi momentum indicator is above the zero level and is pointing down or has just started moving down.
• The yellow line of the Forbi momentum indicator reached the 100 level or higher (optimally above 200) and turned down.

Important: If the blue line of the Forbi momentum indicator corresponds to sell conditions and one of the conditions (1, 2 or 4) is met and the others are close to being met, a sell order should also be placed.

Signals indicating the closing of a short position (the fulfillment of one of the conditions is sufficient)

• The red histogram of the Forbi timing indicator crosses the zero level from bottom to top.
• The red histogram of the Forbi momentum indicator crosses the zero level from bottom to top.
• The blue line of the Forbi momentum indicator crosses the -120 level from bottom to top.

According to ForTrader.org experts, the Forbi system trading strategy, both with standard and author's indicators, will be a significant help for novice traders. For traders who already have some experience in trading, the Forbi system trading strategy provides almost unlimited possibilities for optimizing and increasing the efficiency of trading.

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