Trend Hugger Trading Method

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The Trend Hugger trading system is a nice little system which you can always keep handy to in your toolbox to trade the market. The system can work on all timeframes as well as all pairs... So, feel free to choose the pairs you want to be working with.

Firstly, you need to setup your chart with the appropriate indicators. We have a choice between 2 indicators which we are going to use here. You can either use the MACD indicator or the OSMA, it does not really matter whihc one you choose as both has almost the same reaction to the ticks. So, go ahead and place one of the 2 indicators on your chart with the following settings: 

Fast EMA = 40

Slow EMA  = 50

Signal SMA  = 100

As you can see, we will be using a long length setting for these indicators and this is very good when there is a trend in play.

When to BUY

You should open a buy position when the CURRENT INDICATOR BAR is HIGHER than the previous bar. Bear in mind that we are talking about the bar/histogram of the indicator and not the bar/candles on the chart. We look only at the indicator data.

When to SELL

To open a sell position, we just wait for the opposite of the buy signal to occur and that happens when the CURRENT INDICATOR BAR is LOWER than the previous bar. If we see this setup, we open a sell position. Again, bear in mind that we are ONLY looking at the BAR/Histogram of the indicator and not those on the charts.

Stoploss and takeprofit

You can use a fixed stoploss of 50 for pairs like gbpjpy or 20 for pairs like eurusd etc. You can also use trailing stop or move the stop manually yourself if you are around watching the trades. You can set the takeprofit as well as per your own convenience.

As you may have noticed, this system is very easy to learn and apply on the markets. So, go on and open a demo account for some practice. Wish you some good green pips. Would like to hear back from you.

Thank to TKimble for sharing this method.

 

Could anyone familiar with the Trend Catcher System please share a link to the indicator settings, entry/exit signals or experience in using this system.

In case you are unfamiliar with the name, it consists of Bollinger Bands enveloped within Starc bands. I'm unfamiliar with the settings of both sets of bands as well as entry and exit signals, but it appears to be a very viable system.

Any comments on experience you've had trading this system for either stocks, futures, or forex (please specify) would be greatly appreciated.

Thanks in advance for your time and assistance.

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