A reliable strategy isn’t just about spotting opportunities; it’s about consistent execution, smart risk management, and knowing when to step back. To help traders build a robust approach, FBS has prepared a proven strategy checklist featuring powerful indicator combinations that work across market conditions.
Whether you’re a beginner or an experienced trader, these setups can serve as a practical guide.
The Williams Alligator helps you define the direction and strength of the trend by using three smoothed moving averages (Lips, Teeth, and Jaw). Add the MACD for momentum confirmation — its histogram and signal line crossover clarify entry and exit points.
Checklist:
● Wait for the Alligator’s lips line to cross the jaw.
● Use MACD crossover for precise entry.
● Confirm momentum with MACD histogram direction.
● Use trailing stop-loss as the Alligator lines diverge.
Best for: Trending markets, medium to long-term trades.
Example:
A great example can be seen on the USDCAD H4 chart. An entry signal appears when the Alligator’s lips cross below the jaw while the MACD histogram drops below the zero line, around 1.3840.
For the exit, traders can look for the Alligator’s lips to cross back above the jaw, indicating a potential reversal near the 1.3500 level.
Bollinger Bands indicate volatility and potential price extremes, while RSI helps filter false signals by showing overbought or oversold conditions.
Checklist:
● Watch for price touching or breaching the outer bands.
● Confirm with RSI: over 70 (overbought), under 30 (oversold).
● Look for reversal patterns or breakout continuation.
● Set stop-loss beyond the band breakout level for safety.
Best for: Swing trading, range, or breakout strategies.
Example:
Let’s take a look at the NZDUSD H2 chart. An entry signal appears when the price breaks below the Bollinger Band and starts to retreat while the RSI dips below the 30 level, indicating an oversold condition around the 0.5540 area.
For the exit, traders can look for the price to reach the upper Bollinger Band, near the 0.5690 level, as the RSI moves out of the oversold zone and confirms the upward momentum.
Ichimoku Cloud is an all-in-one indicator offering support, resistance, trend direction, and momentum. Add the Stochastic Oscillator to fine-tune entries and exits.
Checklist:
● Enter trades when the price is above the cloud (bullish) or below (bearish).
● Use Stochastic crossovers for better timing.
● Watch for cloud twists as early trend signals.
● Place stop-loss just beyond cloud boundaries.
Best for: Position trading, swing trading.
Example:
A clear example can be seen on the GBPUSD H4 chart. An entry signal appears when the price breaks below the Ichimoku cloud, confirming the start of a bearish trend. At the same time, the Stochastic oscillator shows a bearish crossover (where the solid line %K crosses below the dotted line %D) around the overbought zone, near the level of 1.3280.
For the exit, traders could look for the moment when the Stochastic lines left the oversold zone (below 20), and when the Tenkan-sen (red line) crosses Kijun-sen (blue line) from bottom to top, around the support level of 1.3060, signaling potential exhaustion of the downward move and an opportunity to lock in profits.
Moving averages are a trader’s classic tool, and the Exponential Moving Average (EMA) is perfect for speed. Pair with Average True Range (ATR) to adjust stop-loss and take-profit levels based on market volatility.
Checklist:
● Look for fast EMA crossing above or below slow EMA for trend signal.
● Use ATR to dynamically set stop-loss and take-profit targets.
● Adjust position sizing according to ATR values.
Best for: Trend-following strategies in volatile markets.
Example:
This USDJPY H4 chart shows a clean setup using ATR to set stop-loss and take-profit, combined with moving averages to determine trend direction.
The entry point appears after the price confirms a bearish crossover: the 50-MA (yellow) crosses below the 100-MA (red), signaling the start of a downtrend. Currently, the ATR reads approximately 0.685, helping to set dynamic risk management levels.
You can place the stop-loss (SL) around 156.870, which is roughly 2 × ATR above the entry level. This allows room for natural price fluctuations while respecting the overall downtrend.
For the take-profit (TP), the target is set near 152.74, which shows the 1:2 R: R ratio. This locks in profit as the price follows the bearish momentum.
Parabolic SAR is great for tracking trend direction and trailing stops. Pairing it with a Momentum Indicator helps confirm the strength of a move.
Checklist:
● Follow Parabolic SAR dots for entry/exit guidance.
● Confirm trend strength with Momentum Indicator direction.
● Tighten stop-loss as SAR dots trail the price action.
Best for: Intraday trading, scalping.
Example:
On the USDCHF H1 chart, we see a good example of combining Parabolic SAR with the Momentum indicator for trade confirmation.
The entry signal appears when the Parabolic SAR dots switch from being above the price to below it, indicating a potential bullish reversal. At the same time, the Momentum indicator crosses above the 100 level, confirming the growing bullish pressure. This confluence of signals gives the confidence to enter a long position around the 0.9550 level.
For the exit point, traders could watch for Parabolic SAR dots to flip back above the price, which would suggest a weakening of the upward trend. In this setup, the price moves up towards the 0.9600 area before showing signs of consolidation, offering a natural level to take profits.
Indicators alone won’t make you profitable — discipline will. These combinations give traders a solid starting point, but a personal checklist is essential no matter the setup. Before entering any trade, always check:
● Is the trend clear?
● Is the signal confirmed?
● Have you managed risk (stop-loss, lot size)?
● Do you have a clear exit plan?
FBS recommends backtesting and demo practice before live execution. Remember, your checklist is your trading compass — keep it sharp.
A reliable strategy isn’t just about spotting opportunities; it’s about consistent execution, smart risk management, and knowing when to step back. To help traders build a robust approach, FBS has prepared a proven strategy checklist featuring powerful indicator combinations that work across market conditions.
Whether you’re a beginner or an experienced trader, these setups can serve as a practical guide.
The Williams Alligator helps you define the direction and strength of the trend by using three smoothed moving averages (Lips, Teeth, and Jaw). Add the MACD for momentum confirmation — its histogram and signal line crossover clarify entry and exit points.
Checklist:
● Wait for the Alligator’s lips line to cross the jaw.
● Use MACD crossover for precise entry.
● Confirm momentum with MACD histogram direction.
● Use trailing stop-loss as the Alligator lines diverge.
Best for: Trending markets, medium to long-term trades.
Example:
A great example can be seen on the USDCAD H4 chart. An entry signal appears when the Alligator’s lips cross below the jaw while the MACD histogram drops below the zero line, around 1.3840.
For the exit, traders can look for the Alligator’s lips to cross back above the jaw, indicating a potential reversal near the 1.3500 level.
Bollinger Bands indicate volatility and potential price extremes, while RSI helps filter false signals by showing overbought or oversold conditions.
Checklist:
● Watch for price touching or breaching the outer bands.
● Confirm with RSI: over 70 (overbought), under 30 (oversold).
● Look for reversal patterns or breakout continuation.
● Set stop-loss beyond the band breakout level for safety.
Best for: Swing trading, range, or breakout strategies.
Example:
Let’s take a look at the NZDUSD H2 chart. An entry signal appears when the price breaks below the Bollinger Band and starts to retreat while the RSI dips below the 30 level, indicating an oversold condition around the 0.5540 area.
For the exit, traders can look for the price to reach the upper Bollinger Band, near the 0.5690 level, as the RSI moves out of the oversold zone and confirms the upward momentum.
Ichimoku Cloud is an all-in-one indicator offering support, resistance, trend direction, and momentum. Add the Stochastic Oscillator to fine-tune entries and exits.
Checklist:
● Enter trades when the price is above the cloud (bullish) or below (bearish).
● Use Stochastic crossovers for better timing.
● Watch for cloud twists as early trend signals.
● Place stop-loss just beyond cloud boundaries.
Best for: Position trading, swing trading.
Example:
A clear example can be seen on the GBPUSD H4 chart. An entry signal appears when the price breaks below the Ichimoku cloud, confirming the start of a bearish trend. At the same time, the Stochastic oscillator shows a bearish crossover (where the solid line %K crosses below the dotted line %D) around the overbought zone, near the level of 1.3280.
For the exit, traders could look for the moment when the Stochastic lines left the oversold zone (below 20), and when the Tenkan-sen (red line) crosses Kijun-sen (blue line) from bottom to top, around the support level of 1.3060, signaling potential exhaustion of the downward move and an opportunity to lock in profits.
Moving averages are a trader’s classic tool, and the Exponential Moving Average (EMA) is perfect for speed. Pair with Average True Range (ATR) to adjust stop-loss and take-profit levels based on market volatility.
Checklist:
● Look for fast EMA crossing above or below slow EMA for trend signal.
● Use ATR to dynamically set stop-loss and take-profit targets.
● Adjust position sizing according to ATR values.
Best for: Trend-following strategies in volatile markets.
Example:
This USDJPY H4 chart shows a clean setup using ATR to set stop-loss and take-profit, combined with moving averages to determine trend direction.
The entry point appears after the price confirms a bearish crossover: the 50-MA (yellow) crosses below the 100-MA (red), signaling the start of a downtrend. Currently, the ATR reads approximately 0.685, helping to set dynamic risk management levels.
You can place the stop-loss (SL) around 156.870, which is roughly 2 × ATR above the entry level. This allows room for natural price fluctuations while respecting the overall downtrend.
For the take-profit (TP), the target is set near 152.74, which shows the 1:2 R: R ratio. This locks in profit as the price follows the bearish momentum.
Parabolic SAR is great for tracking trend direction and trailing stops. Pairing it with a Momentum Indicator helps confirm the strength of a move.
Checklist:
● Follow Parabolic SAR dots for entry/exit guidance.
● Confirm trend strength with Momentum Indicator direction.
● Tighten stop-loss as SAR dots trail the price action.
Best for: Intraday trading, scalping.
Example:
On the USDCHF H1 chart, we see a good example of combining Parabolic SAR with the Momentum indicator for trade confirmation.
The entry signal appears when the Parabolic SAR dots switch from being above the price to below it, indicating a potential bullish reversal. At the same time, the Momentum indicator crosses above the 100 level, confirming the growing bullish pressure. This confluence of signals gives the confidence to enter a long position around the 0.9550 level.
For the exit point, traders could watch for Parabolic SAR dots to flip back above the price, which would suggest a weakening of the upward trend. In this setup, the price moves up towards the 0.9600 area before showing signs of consolidation, offering a natural level to take profits.
Indicators alone won’t make you profitable — discipline will. These combinations give traders a solid starting point, but a personal checklist is essential no matter the setup. Before entering any trade, always check:
● Is the trend clear?
● Is the signal confirmed?
● Have you managed risk (stop-loss, lot size)?
● Do you have a clear exit plan?
FBS recommends backtesting and demo practice before live execution. Remember, your checklist is your trading compass — keep it sharp.
