TREND Follow 4WMA + Donchian Trend Ribbon Strategy

Discover a trend-following day trading strategy combining 4WMA and Donchian Trend Ribbon indicators on a 1-minute chart for cryptocurrencies, forex, and indices

Published · Updated · Methodology: Technical Indicators

Part of: Trend Following

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: 1 minute
  • Markets: Cryptocurrencies, Forex, Indices, Commodities

Indicators used

  • Trend follow 4 wma
  • Donchian Trend Ribbon

Source video

Decoded from: LA MEJOR ESTRATEGIA De Trading 2023/2024 | Como NO PERDER En Trading Diario by *Alex Inversiones* — watch the original

Key timestamps:

  • 0:50 - Introduction to indicators
  • 1:50 - Trend Follow 4WMA indicator added
  • 2:20 - Donchian Trend Ribbon indicator added
  • 3:00 - Trend Follow 4WMA settings adjustment
  • 3:30 - Donchian Trend Ribbon settings
  • 5:00 - Strategy explanation starts
  • 5:15 - Long entry conditions
  • 6:00 - Stop loss for long entry
  • 6:15 - Take profit for long entry
  • 7:00 - Short entry conditions
  • 7:40 - Stop loss for short entry
  • 8:00 - Take profit for short entry

Strategy overview

Trend-following systems try to stay on the side of the dominant move and step aside when it stops being dominant. What distinguishes this entry is the pairing: a four-moving-average trend follower set alongside the Donchian Trend Ribbon on a one-minute chart. Neither is a level indicator — each renders direction as a color state, so the screen is built to be read at a glance rather than checked against a number.

That pairing is worth thinking about before treating it as confirmation. Moving averages smooth price; Donchian channels take rolling highs and lows of the same price. Two readings of one series will agree most of the time, and when they do, the agreement is partly structural rather than independent evidence — the informative moments are the disagreements, and how long each tool takes to flip. On a one-minute chart that lag is the whole problem: both instruments confirm direction only after it has established itself, and the shorter the bar, the larger the share of each captured move that goes to spread and commission.

The source is a Spanish-language walkthrough from Alex Inversiones, titled "LA MEJOR ESTRATEGIA De Trading 2023/2024 | Como NO PERDER En Trading Diario" — pitched around not losing rather than around gains, an unusual frame for a one-minute setup. The video is chaptered, and those chapters show it front-loads installing and configuring both indicators before the strategy explanation begins; whatever lookback lengths those two overlays end up carrying are the strategy's real parameters. No rule set was extracted for this entry, so the trigger definition a viewer would need — above all, whether a color change counts at bar close or intrabar — has to come from the video itself.

Topics

trend follow 4wma · donchian trend ribbon · technical indicators · day trading strategy · 1 minute strategy · cryptocurrency trading · forex strategy · indices trading · pine script · tradingview strategy · trend following strategy · commodities trading

Frequently asked questions

What is the Donchian Trend Ribbon?

It is a trend-direction display derived from Donchian channels — the highest high and lowest low over a lookback period — rendered as a colored ribbon whose state shifts as price breaks or fails to break those rolling extremes, so direction is read visually rather than from a numeric threshold.

Does combining two trend indicators confirm a signal?

Not in the way independent evidence would. A moving-average trend follower and a Donchian ribbon are both computed from the same price series, so they agree by construction much of the time. The practical information is in when they disagree and in how quickly each one changes state.

Is the 1-minute timeframe suitable for trend following?

It is the resolution this video works on, but trend tools lag by design and one-minute bars produce a large number of short moves. Transaction costs take a bigger share of each move at that resolution, so logic that holds on higher timeframes does not automatically survive there.

Are the exact rules of this strategy available on this page?

No rule set was extracted for this entry, so this page covers the concept and the source rather than a rule-by-rule breakdown. Strategy Decoder points to the original chaptered Spanish-language video where the setup is demonstrated, so you can follow it there and backtest any version you build on TradingView before risking capital.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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