The Linear Forex Signals indicator for mt4 (Metatrader 4) is a three-line channel used to identify future market trends.
The indicator gets displayed in the main MT4 chart window and consists of the upper channel line, lower channel line and the linear regression line.
Buy & Sell Trade Example
- Open a buy trade whenever price touches the lower orange channel line from above and the Linear channel is pointing up.
- Open a sell trade whenever price touches the upper blue channel line from below and the Linear channel is pointing down.
- Take profit at the opposite channel line.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “lineaire.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The example chart below displays the Linear Forex Signals mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Linear Forex Signals indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend Channel
Does the indicator repaint? No.
MT4 Scalping Strategy Using Linear Forex Signals and Waddah Attar Scalping Indicators
This MT4 scalping strategy combines the trend-identifying power of the Linear Forex Signals Indicator with the momentum-confirming signals of the Waddah Attar Scalping Indicator.
It’s designed for traders aiming to capture short-term price movements on volatile currency pairs.
The strategy works best on the 1-minute to 5-minute timeframes, making it ideal for scalpers seeking quick entries and exits.
By using these two indicators together, traders can identify the prevailing trend and confirm entry points with momentum, enhancing the probability of successful trades.
Buy Entry Rules
- Ensure the Linear Forex Signals Indicator displays an upward-sloping channel, indicating a bullish trend.
- Wait for the Waddah Attar Scalping Indicator to show a green histogram, signaling bullish momentum.
- Enter a buy trade at the market price once both conditions are met.
- Set a stop loss just below the recent swing low or the lower boundary of the channel.
- Set a take profit at the upper boundary of the channel or a predetermined number of pips, depending on market conditions.
Sell Entry Rules
- Ensure the Linear Forex Signals Indicator displays a downward-sloping channel, indicating a bearish trend.
- Wait for the Waddah Attar Scalping Indicator to show a red histogram, signaling bearish momentum.
- Enter a sell trade at the market price once both conditions are met.
- Set a stop loss just above the recent swing high or the upper boundary of the channel.
- Set a take profit at the lower boundary of the channel or a predetermined number of pips, depending on market conditions.
Advantages
- Combines trend direction with momentum confirmation for higher accuracy.
- Works effectively in volatile markets where small price movements can be exploited.
- Allows multiple trades per day due to a short time frame focus.
- Suitable for various currency pairs, including EUR/USD, GBP/USD, and USD/JPY.
Drawbacks
- Requires constant attention since trades are on short time frames.
- False signals can occur during low liquidity or news events.
- Stop loss and take profit targets must be carefully managed to avoid losses.
- Not suitable for long-term trading or swing trading.
Case Study 1: EUR/USD on 1-Minute Chart
On the EUR/USD 1-minute chart, the Linear Forex Signals Indicator displayed an upward-sloping channel, indicating a bullish trend.
Shortly after, the Waddah Attar Scalping Indicator produced a green histogram, signaling a buy opportunity.
The trade was entered at 1.1006, with a stop loss at 1.1000 and a take profit of 1.1012.
The trade closed successfully with a 6-pip gain within 10 minutes.
Case Study 2: GBP/USD on 5-Minute Chart
On the GBP/USD 5-minute chart, the Linear Forex Signals Indicator showed a downward-sloping channel, indicating a bearish trend.
A red histogram appeared on the Waddah Attar Scalping Indicator, signaling a sell entry.
The trade was entered at 1.2750, with a stop loss at 1.2756 and a take profit of 1.2740.
The trade reached the take profit target, netting 10 pips in 15 minutes.
Strategy Tips
- Always wait for confirmation from both indicators before entering a trade.
- Use the channel boundaries to set stop loss and take profit levels accurately.
- Monitor market news as high-impact events can cause unexpected price spikes, invalidating scalping signals.
- Adjust take profit levels based on currency pair volatility; some pairs may require tighter targets to maximize success.
- Practice this strategy on a demo account to build timing and confidence before trading with real money.
