The ASCTrend system is a combination of basic MT4 indicators and ASCTrend tools. If you’re trading with MT4 platforms for a while, you may have already been introduced to Bollinger Bands, Parabolic SAR, Exponential Moving Averages(EMA), CCI, RSI, and Stochastics. These indicators are popular for generating simple trend-following trading signals.
The blue dots around the price candles represent the ASCT2 indicator. It shows the short-term breakout levels of the price.
Usually, the price begins a trend-following move whenever it manages to break the ASCT2 level. Besides, the system uses ASCTrend1 Signal arrows to add further confirmations on possible price-swinging areas.
Buy Signal Generation with ASCTrend System
The price rebounds from the lower Bollinger Bands and moves above the ASCT2 level at the same time suggesting it’s time to look for a buy-entry opportunity. During these periods the price should also be moving above the Parabolic SAR dots.
We’ll open a buy order during the oversold period of the market. So, the CCI needs to be near -100 and the RSI at 30 to confirm an oversold market. Also, the Stochastics plots a bullish crossover near the 30-level indicating bullish momentum.
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In this example, the price plots a bearish pin bar below the higher Bollinger Bands and keeps moving below the Parabolic SAR and ASCT2 levels.
So, we can consider the breakout levels as a potential area for going short. In the meantime, the CCI drops from 100 and the RSI falls from 70-level confirming the bearish trend of EURUSD.
Finally, the Stochastics Oscillator shows a bearish crossover at its 80-level confirming the bearish market momentum. Go for a sell order when you get the above confirmation signals and hold your sell order until the system starts showing bullish trend-reversal signals.
The ASCTrend System represents a complete package of technical analysis tools needed for anticipating precise buy-sell signals.
Besides, its powerful price swing indicators such as ASCT2 and ASCTrend1 signals are quite helpful for beginners in determining the market bias.
Moreover, its triple trend filtering system allows you to spot highly probable trading opportunities and maintain a higher winning rate.