A formula-first reference for forex-style technical strategies: indicators, candlestick signals, reversal patterns, continuation structures, confluence combinations, and the trade plan attached to each setup.
Strategy formulas
Forex Pattern & Indicator Playbook
Entries, stops, targets, and boolean rules
Trendbullish
EMA Trend Cross
Fast EMA crosses above slow EMA while price closes above both averages.
EMA_fast(t) > EMA_slow(t) AND EMA_fast(t-1) <= EMA_slow(t-1)Enter on confirmed close. Stop below recent swing low. Target 1.5R-2R or trail under EMA_slow.
Momentumbullish
RSI Mean Reversion
Oversold RSI recovers from an extreme at support.
RSI_14(t-1) < 30 AND RSI_14(t) >= 30 AND close(t) > supportEnter recovery close. Stop below support. Target mid-range or prior resistance.
Momentumbullish
MACD Momentum Shift
MACD line crosses signal line with histogram flipping positive.
MACD = EMA_12(close) - EMA_26(close); signal = EMA_9(MACD); MACD(t) > signal(t)Enter after crossover with trend filter. Stop below last higher low. Exit when histogram weakens.
Volatilityneutral
Bollinger Squeeze Breakout
Bands contract, then price breaks outside the range with direction confirmation.
bandwidth = (upper_20,2 - lower_20,2) / SMA_20; bandwidth < p20 AND close breaks rangeTrade breakout direction. Stop inside the range. Target measured range height.
Trend strengthneutral
ADX Trend Gate
Only allow trend trades when directional strength is high enough.
ADX_14 > 25 AND (+DI > -DI for longs OR -DI > +DI for shorts)Use as a filter for EMA/MACD setups. Avoid trend entries when ADX is falling below 20.
Momentumbearish
Stochastic Reversal
Overbought oscillator rolls over near resistance.
%K_14(t-1) > 80 AND %K_14(t) < %D_3(t) AND close(t) < resistanceEnter on bearish close. Stop above resistance. Target range midpoint or support.
Combined strategies
Confluence Setups
Regime + trigger + confirmation + risk rule
Directional trendbullish
Trend-Momentum Continuation
This setup waits for trend direction, momentum, and trend strength to agree before buying a pullback. The visual shows price respecting rising moving averages, then resuming upward after MACD and ADX confirm.
EMA_50 stays above EMA_200, so the market bias is long.
Price pulls back toward EMA_20 instead of breaking the trend structure.
MACD flips back above signal while ADX stays above 25, confirming momentum and strength.
The result is a continuation buy, with the stop under the pullback low.
PairEUR/USD
Timeframe4H
TradeBuy EUR/USD when price pulls back above EMA_20 while EMA_50 remains above EMA_200.
EMA trend filterMACD momentumADX trend gate
close > EMA_50 AND EMA_50 > EMA_200 AND MACD > signal AND histogram rising AND ADX_14 > 25
Entry
Buy the first pullback close back above EMA_20 after the full stack turns true.
Risk
Stop below the pullback swing low; first target 2R, then trail under EMA_50.
Avoid
Skip when ADX is below 20 or price is stretched more than 2 ATR above EMA_20.
Open strategy result
Long candidate
EUR/USD
4H
BuyTrend-Momentum Continuation
Result: look for a continuation long, not a reversal. The strategy says the pair is still in trend-following mode.
Condition
Trend and momentum agree: EMA_50 > EMA_200, MACD is above signal, and ADX confirms a tradable trend.
Entry
Buy the confirmed pullback close above EMA_20.
Stop
Below the pullback swing low or 1 ATR under entry.
Confidence
High when ADX is rising and the pullback holds above EMA_50.
This setup starts with a quiet, compressed range. The strategy does not predict the direction; it waits for price to break out and uses momentum confirmation to choose buy or sell.
bandwidth_20 < percentile(bandwidth_20, 20) AND close > rangeHigh AND MACD > signal
Entry
Trade the breakout direction only after the candle closes outside the compression range.
Risk
Stop back inside the range; target rangeHeight or exit if price closes back inside bands.
Avoid
Avoid breakouts into nearby support/resistance or during low-liquidity session edges.
Open strategy result
Breakout watch
GBP/USD
1H
Buy or SellSqueeze Breakout Confirmation
Result: wait for direction. The strategy does not choose buy or sell until the range breaks.
Condition
Volatility is compressed, then price closes outside the range with MACD confirming the breakout direction.
Entry
Buy above range high, or sell below range low after candle close.
Stop
Back inside the compression range beyond the breakout candle midpoint.
Confidence
Medium until breakout closes; improves when the breakout candle expands ATR.
Target 1: range heightTarget 2: 1.5x range heightExit: close back inside Bollinger Bands
Range or failed trendbullish
Mean-Reversion Exhaustion
This setup looks for price stretched too far below fair value, then waits for evidence that sellers are losing control. The visual shows a lower-band pierce, support rejection, and snapback toward the middle band.
Price tags or pierces the lower Bollinger Band near support.
RSI is below 30, confirming oversold pressure.
Price rejects the low and closes back above support.
The result is a bounce trade toward SMA_20 or the range midpoint.
PairAUD/USD
Timeframe1H
TradeBuy AUD/USD after an oversold lower-band rejection at support.
RSI recoveryLower Bollinger BandSupport retest
close(t-1) <= lowerBand_20,2 AND RSI_14(t-1) < 30 AND RSI_14(t) > 30 AND close > support
Entry
Buy the recovery close after price rejects the lower band near defined support.
Risk
Stop below the rejection low; target SMA_20 first, then opposite range edge.
Avoid
Do not fade strong trends when ADX is rising above 25 against the trade.
Open strategy result
Long candidate
AUD/USD
1H
BuyMean-Reversion Exhaustion
Result: look for a range bounce. The setup is invalid if the market is trending hard lower.
Condition
Price rejects the lower Bollinger Band at support and RSI recovers back above 30.
Entry
Buy the first close back above support after RSI recovery.
Stop
Below the rejection low.
Confidence
Medium; strongest when ADX is flat or falling below 25.
Target 1: SMA_20Target 2: range midpointTarget 3: opposite range resistance
Continuation after consolidationbullish
Pattern Breakout With Trend Filter
This setup turns a chart pattern into a trade only when trend alignment and volatility expansion agree. The visual shows price coiling under resistance, then breaking higher with a measured-move target.
Price forms a bull flag or ascending triangle during an existing uptrend.
EMA_20 remains above EMA_50, keeping the trend filter positive.
Price closes above the pattern boundary while ATR expands.
The result is a breakout buy, targeting the pattern height or flagpole extension.
PairUSD/JPY
Timeframe4H
TradeBuy USD/JPY when the bull flag or ascending triangle closes above its breakout boundary.
Ascending triangle or bull flagEMA alignmentVolume/ATR expansion
(ascendingTriangle OR bullFlag) AND close > patternBreakout AND EMA_20 > EMA_50 AND ATR_14 rising
Entry
Buy the breakout close or the first supported retest of the broken pattern boundary.
Risk
Stop below the pattern boundary or last higher low; target measured pattern height.
Avoid
Skip if breakout candle closes with a long upper wick or fails to expand range.
Open strategy result
Long candidate
USD/JPY
4H
BuyPattern Breakout With Trend Filter
Result: take the continuation breakout only after the pattern confirms. No early entry inside the structure.
Condition
Continuation pattern breaks upward while EMA_20 > EMA_50 and ATR expands.
Entry
Buy breakout close or first retest of the broken pattern boundary.
Stop
Below the breakout boundary or below the last higher low.
Confidence
High when breakout candle closes near its high without a long upper wick.
This setup looks for a mature uptrend failing. The visual shows a head-and-shoulders structure where price breaks the neckline while RSI divergence warns that momentum is no longer confirming new highs.
Price forms a left shoulder, higher head, and weaker right shoulder.
RSI fails to confirm the final high, creating bearish divergence.
Price breaks below the neckline or fails a neckline retest.
The result is a reversal sell, with the stop above the right shoulder.
PairEUR/JPY
Timeframe4H
TradeSell EUR/JPY after the head-and-shoulders neckline breaks with bearish RSI divergence.
Head and shouldersRSI divergenceNeckline break
headAndShoulders AND close < neckline AND RSI_high2 < RSI_high1 AND price_high2 >= price_high1
Entry
Sell the neckline break, or wait for a failed retest when volatility is elevated.
Risk
Stop above the right shoulder; target neckline - patternHeight, then trail by lower highs.
Avoid
Avoid if the right shoulder breaks above the head or the neckline is not clearly tested.
Open strategy result
Short candidate
EUR/JPY
4H
SellReversal Confluence
Result: look for a reversal short. The setup fails if price reclaims the neckline and right shoulder.
Condition
Head-and-shoulders neckline breaks while RSI divergence shows weakening momentum.
Entry
Sell neckline break, or sell failed retest of the neckline.
Stop
Above the right shoulder.
Confidence
Medium-high when the right shoulder stays below the head and the retest fails.
This setup only gives weight to candles that form at important levels. The visual shows price testing support or resistance, printing a reversal candle, then confirming with oscillator direction.
Price reaches a known support or resistance level.
A hammer, engulfing candle, or rejection candle forms at that level.
Stochastic turns in the same direction as the candle signal.
The result is a level-reaction trade; candles in the middle of the range are ignored.
PairUSD/CAD
Timeframe1H
TradeBuy USD/CAD after a bullish candle at support, or sell after a bearish candle at resistance.
Engulfing or hammerSupport/resistanceStochastic turn
(bullishEngulfing OR hammer) AND distance(close, support) < 0.25 * ATR_14 AND %K crosses above %D
Entry
Enter only after the candle pattern forms at the level and the next close confirms direction.
Risk
Stop beyond the candle extreme; target the next level or at least 1.5R.
Avoid
Ignore mid-range candles with no nearby level because the pattern has weak context.
Open strategy result
Two-way level trade
USD/CAD
1H
Buy or SellCandlestick-At-Level Confirmation
Result: trade the level reaction. Candles in the middle of the range are ignored.
Condition
A reversal candle forms at a defined support or resistance level and stochastic turns in the same direction.
Entry
Buy above bullish candle high at support, or sell below bearish candle low at resistance.
Stop
Beyond the candle extreme.
Confidence
Medium; improves when the candle forms exactly at a tested level.
Target 1: next intraday levelTarget 2: 1.5RTarget 3: 2R if momentum follows through
Strategy results
Example Trade Outputs
Pair, direction, entry, stop, targets, and confidence
Long candidate
EUR/USD
4H
BuyTrend-Momentum Continuation
Result: look for a continuation long, not a reversal. The strategy says the pair is still in trend-following mode.
Condition
Trend and momentum agree: EMA_50 > EMA_200, MACD is above signal, and ADX confirms a tradable trend.
Entry
Buy the confirmed pullback close above EMA_20.
Stop
Below the pullback swing low or 1 ATR under entry.
Confidence
High when ADX is rising and the pullback holds above EMA_50.