Moda Trendus Manual
Moda Trendus Manual
Moda Trendus Manual
MODA TRENDUS
Tradeology Moda Trendus Trading System
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Tradeology Moda Trendus Trading System
Introduction
Welcome to the Moda Trendus trading system. This trading system is based on a set of
three indicators that work together to generate Buy and Sell trade signals. In order to
confirm the Buy and Sell trade signals, we will be using two popular standard indicators
that you may know about already.
The Moda Trendus trading system is a unique and stable trading system that can be
traded on all time frames and all available currency pairs. The system itself is extremely
easy to learn and can be mastered in a very short period of time. It doesn’t matter if you
are still new to trading or if you are a more experienced trader, this system is easy to
learn and can be extremely powerful in the right hands.
This system tends to produce the best results when traded on the 30 Minute, 1 Hour
and the 4 Hour time frames. The method itself will work across all time frames and I
sometimes use it to trade on the 15 and 5 Minute charts when I do not have a lot of
time to spend trading or monitoring my charts.
The system indicators and chart template to be used when trading this system can be
found on the download page in the members area. Simply download the file and watch
the accompanying videos to learn how to install the system on to your trading platform
and capture your first trades.
The rules of the Moda Trendus trading system are easy to understand and implement.
The system is designed to highlight entries in good trading conditions so you can be
certain that when an entry presents itself you will usually have a high probability of
getting in and out of the trade with a fair profit.
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Tradeology Moda Trendus Trading System
At First Glance
This is what the Moda Trendus trading system looks like once it has been applied on an
MT4 chart. The charts are relatively clean and everything that you need to trade the
system can be found on the chart as shown below. There is no need to switch to other
higher or lower time frames when trading the system.
We’ll be using this chart setup to make decisions on whether to enter the market with a
Buy or a Sell trade every time we trade with Moda Trendus .
We will be putting this information to good use when we monitor our charts and
attempt to identify valid trade signals.
In the following chapter, we’ll take a closer look at each indicator and see how it all
comes together to generate Buy and Sell trade alerts and also highlight areas where we
may look to exit our positions.
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Tradeology Moda Trendus Trading System
1. RSI
2. Stochastic
3. Moving Average
4. Stop Reverse
5. Trendlines
1. RSI
The relative strength index (RSI) is a momentum indicator that measures the magnitude
of recent price changes to evaluate overbought or oversold conditions in the price of a
stock or other asset. The RSI is displayed as an oscillator (a line graph that moves
between two extremes) and can have a reading from 0 to 100. The indicator was
originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book,
New Concepts in Technical Trading Systems.
2. Stochastic
A stochastic oscillator is a momentum indicator comparing a particular closing price of a
security to a range of its prices over a certain period of time. The sensitivity of the
oscillator to market movements is reducible by adjusting that time period or by taking a
moving average of the result. It is used to generate overbought and oversold trading
signals, utilizing a 0-100 bounded range of values.
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Tradeology Moda Trendus Trading System
3. Moving Average
A moving average (MA) is a widely used indicator in technical analysis that helps smooth
out price action by filtering out the “noise” from random short-term price fluctuations. It
is a trend-following, or lagging, indicator because it is based on past prices.
The two basic and commonly used moving averages are the simple moving average
(SMA), which is the simple average of a security over a defined number of time periods,
and the exponential moving average (EMA), which gives greater weight to more recent
prices.
4. Stop Reverse
The Stop Reverse indicator, used by traders to determine trend direction and potential
reversals in price. The indicator uses a trailing stop and reverse method called "SAR," or
stop and reverse, to identify suitable exit and entry points.
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Tradeology Moda Trendus Trading System
5. Wait for Mt4-stoplevel-reverse to show the direction the market will take
indicated with a blue up arrow.
7. Set your stop loss below the most recent swing low point
8. Set your Take Profit the same distance away from your entry level as your Stop
Loss i.e. 1:1 Risk/Reward Ratio (a 1:2 Risk/Reward Ratio is also acceptable).
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Tradeology Moda Trendus Trading System
Setup
1. Price has to break the up trendline
5. Wait for Mt4-stoplevel-reverse to show the direction the market will take
indicated with a blue up arrow.
7. Set your stop loss above the most recent swing high point
8. Set your Take Profit the same distance away from your entry level as your Stop
Loss i.e. 1:1 Risk/Reward Ratio (a 1:2 Risk/Reward Ratio is also acceptable).
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Tradeology Moda Trendus Trading System
Conclusion
At this stage you have everything you need to master the Moda Trendus trading system
and start taking your own trades. The best thing you can do right now is practice,
practice, practice!
Sign up for a free demo account at your favorite broker, then apply the system to your
charts and go through as many trade examples as you possibly can. You don’t need any
fancy software or trading tools. Just scroll back on your charts and practicing placing
trades by following the system rules.
Keep practicing in demo mode until you are comfortable with the system. Try to go
through as many different scenarios as possible. This will help give you a better idea of
how the system performs in a variety of different market conditions.
You may also start trading the system on a demo account until you have mastered it.
Once you’re able to identify valid trades with a single glance you can be sure that you
are ready to consider switching to a live trading account.
As always, start trading live on a small account and once you have mastered the system
you may consider increasing the size of your trades. There is no such thing as a perfect
trading system and losses are a part of trading. Focus on high quality trades instead of a
high quantity of trades and you will inevitably win more trades than you lose.
The system performs best in trending market conditions so try to avoid quiet market
conditions. In these scenarios you will find that price is moving horizontally and there is
very little movement in an upward or downward direction.
You will usually find that the best trades will be found on the higher time frames.
Although these setups may take a bit longer to form, they usually produce a better
result.
I personally prefer trading this system on the 30 Minute, 1 Hour and 4 Hour time frames
and I tend to stick to the Major currency pairs. My favorite currency pairs are as follows:
EURUSD, USDCHF, GBPUSD, USDJPY, AUDUSD, USDCAD, EURJPY, GBPJPY
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