Strategies

THV-3 Trading System: When and How You Should Use It?

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virtual charts

The THV-3 trading system for MT4 is a profitable trend following strategy to determine the price momentum depending on the market trend and wait for indicators to signal to open a trade.

As this trading method is based on indicators, we will always look for their confirmation. Moreover, we will use multiple trading indicators like pivot indicator, THV Trix, THV3 coral, Ichimoku cloud, and THV trend set up to increase the trading possibilities.

THV-3 trading system for MT4

An FX trading method works best on the M1 or M5 time frame, and you can trade this method on any currency pair. This trading strategy is based on THV-3 indicators.

In this trading strategy, we will utilize multiple indicators to identify the price direction with higher accuracy. However, the forex market is full of doubt; the only path to hold down is to construct a trading strategy with higher accuracy utilizing various indicators.

Let’s have a look at  indicators used in this system:

Pivot point indicator

It is a type of technical analysis indicator to find the price direction. It calculates the average high, low, and closing prices of yesterday and anticipates the movement. Trading over the pivot point indicates that bulls are currently holding the market’s momentum.

On the other hand, trading below this level indicates that bears are holding the market’s momentum. Moreover, pivots are the foundation for the indicator. However, this system has an integrated support and resistance level based on the pivot point calculation.

A trader can get an idea from these levels where a price may face support and resistance. Besides, they help traders to know which direction the price is trending.

THV Trix

It shows the price movements showing a continuation of the trend and reversal levels. This trading method is wholly based on divergence and hidden divergence. However, this trading method is beneficial in both trend-following and reversal.

THV3 Coral

It shows price direction with the most accurate buying and selling point. In contrast, below this line, the market context is bearish and shifts the direction by moving above this level.

Ichimoku cloud 

It is also known as Ichimoku Kinko Hyo. It is the most famous indicator that many professional traders use. Ichimoku Kinko Hyo was developed by a Japanese journalist, Goichi Hosoda, in the 1930s. However, he made it public in the sixties after a long 30 years of perfecting his method.

Moreover, Ichimoku Cloud helps identify the support and resistance levels, trend direction, calculates momentum, and gives trading signals. Besides, Ichimoku cloud indicators work on all time frames and with any forex pairs.

THV Trend 

It becomes green to point upward and becomes red when the market is moving down. Besides, it becomes yellow when the price changes.

Let’s have a look at the visual portrayal of these components.

THV-3 trading system

THV-3 trading system

Bullish trading strategy

The THV-3 trading system is applicable on all time frames from one minute to daily, but it works better on the one-minute and five-minute time frames.

However, you can trade any FX pairs from minor, major, or cross where strongly trending pairs will give you the best outcomes.

Bullish trading conditions

  • Price is above the THV3 coral.
  • Price crosses above the Ichimoku cloud.
  • THV Trix crosses each other, and both have the same green color.
  • The best confirmation is a cross of the fast Trix indicator over the zero-level.
EUR/USD

EUR/USD

Entry

After confirming all trading conditions, you should wait for a candle to close and execute the buy trade as soon as the candles close.

Stop loss 

As it is a trend following strategy, the current bias is prospective to sustain as long as the price is trading above the recent swing low. So, put your stop loss underneath the recent swing low with a ten to 15 pips buffer.

Take profit 

The ideal take profit level is based on a 1:1.5 or 1:2 risk: reward ratio. Therefore, if your stop-loss is ten pips, you should set the take profit at 20 pips. Alternatively, take the profit when the fast Trix changes color. Otherwise, you can target the next potential resistance level or pivot level.

Bearish trading strategy 

The THV-3 trading system is applicable on all time frames from one minute to daily, but it works better on the one-minute and five-minute time frames.

However, you can trade on any currency pairs you wish, such as GBP/USD, GBP/CAD, GBP/NZD, EUR/JPY, GBP/JPY, USD/JPY, EUR/USD, EUR/CAD, EUR/NZD, etc.

Bearish trading conditions  

  • Price is below the THV3 Coral.
  • Price crosses below the Ichimoku cloud.
  • THV Trix crosses each other, and both have the same red color.
  • The best confirmation is a cross of the fast Trix indicator below the zero level.
EUR/USD

EUR/USD

Entry 

After confirming all trading conditions, you should wait for a candle to close and execute the sell trade as soon as the candles close.

Stop loss 

As it is a trend following strategy, the current bias is prospective to sustain as long as the price is trading below the recent swing high. So, put your stop loss above the recent swing high with a ten to 15 pips buffer.

Take profit

The ideal take profit level is based on a 1:1.5 or 1:2 risk: reward ratio. Therefore, if your stop-loss is ten pips, you should set the take profit at 20 pips. Alternatively, take the profit when the fast Trix changes color. Otherwise, you can target the next potential support level or pivot level.

Final thoughts

The THV-3 trading system for MT4 is the most profitable trading method because it depends on the high accuracy indicators. Therefore, you can gain decent trading results at the end of the month.

However, in FX trading, there is no 100% guaranteed profit in each trade. Moreover, in every trading system, success depends on trade management. Therefore, you should utilize the proper money management system and better psychological states to get a better outcome from this trading strategy.

 

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