113# Donchian Arrow with Confluence Tendency Forex Strategy
By Joy22 2025
The Donchian Arrow with Confluence Tendency Strategy is a trend-following trading system that leverages the Confluence 2 indicator (modified TMA band) to define the trend direction and uses the Donchian Arrow for precise entry timing. This strategy is designed for short-term trading and aims to capture high-probability trade setups with confluence signals.
Strategy Setup
Time Frame:5-minute or higher
Markets:Any currency pairs
Platform: MetaTrader 4 (MT4)
MT4 Indicators Used:
Confluence 2 (default settings) – Defines the trend directionDonchian Arrow (default settings) – Confirms buy and sell entries Channel Signal (default settings) – Modified fractal indicator Awesome – Helps determine profit targets.
Trading Rules
General Rule:
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Always trade in the direction of the trend, as defined by the Confluence 2 indicator.
Buy Entry:
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Wait for a buy arrow from the Confluence 2 indicator below the lower band of the channel.
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Enter a buy trade when the Donchian Arrow buy signal appears.
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Open the trade at the next candle’s opening price.
Sell Entry:
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Wait for a sell arrow from the Confluence 2 indicator above the upper band of the channel.
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Enter a sell trade when the Donchian Arrow sell signal appears.
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Open the trade at the next candle’s opening price.
Important Consideration:
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Avoid entering trades near the opposite band of the channel to prevent low-risk-to-reward setups.
Exit Rules
Stop Loss:
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Place the stop loss at the previous swing high/low.
Profit Target:
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Use a risk-to-reward ratio between 1:1 and 1:1.3, depending on market volatility.
