Understanding the Buy and Sell Entry in MetaTrader 5
Aside from overcoming the fear of investing, another huge challenge that beginner traders had to go through is the actual Forex market. This is true especially if the trader lacks an understanding of the strategies used in trading. It is very challenging for traders new to trading to join the market without proper guidance. It seems impossible to succeed with only pure luck.
But for MetaTrader 5 (MT5), beginners can trade in the market with ease, and learning is made possible even for new traders. There are simple strategies used in MT5. It is designed to follow the market trend.
Understanding the Trading Strategies in MetaTrader 5
You can only use the buy trade under the following conditions:
- In the Triple Exponential Average, a MetaTrader 5 Indicator, if you see a red line that hovers right above the 0.000 horizontal level. It’s from this time that the price is being driven to the upside. This should trigger going long on the currency pair.
- If the blue line on the indicator gets to cross the red line, this time, the market sentiment is bullish. A buy signal is therefore highly recommended.
- For buy stop loss, it is suggested that you put the stop loss right below the short term support.
- For Take Profit or Exit Strategy, it is suggested that you put it following these conditions; At the Triple Exponential Average Indicator, if the red line goes below the 0.00 horizontal level, bulls are slowly weaning. This should be your call to exit and take your profit immediately; if you see the price getting near the blue line, the sentiment is slowly diminishing, this is the best time to take profit or exit.
You must only open a sell trade if these conditions are properly met.
- In the Triple Exponential Average, when a red line goes below the 0.00 horizontal level, the price is being dragged lower and this is a call to go short on the current Forex pair you are trading.
- If you see the blue line crossing right above the red line, the market becomes bearish and therefore, it is a call to go short.
- For stop-loss, it is recommended to put the stop loss right above your short-term resistance.
- For Take Profit/Exit Strategy, it is recommended that you check these conditions first before laying your decisions; At the Triple Exponential Average, if the red line goes above 0.00 horizontal reference level then it should be a bearish trend. This is the time when more bears tend to close positions. Therefore, it is the perfect time to take profit or exit your trades; If the price goes near the blue line, a bullish reversal is about to come. Therefore, it is time to exit your trade or take profit.
The Triple Exponential Moving Average is being used in this strategy. It is also called Trix and was created by Jack Hutson in the 1980s. It is very useful in finding the percentage change of the triple exponential on the moving average in MetaTrader 5 (MT5).