Activator Channels Envelopes Forex Trading Strategy

Do not fret out when you face a big loss in your trading career, because you’re not alone, as nearly all traders will encounter losses in their career.

This can sometimes be attributed to a technology meltdown, break in concentration or just a continuous flush of trading capital.

The Activator Channels Envelopes forex trading strategy will guide through the bad market days, ensuring that you enjoy sustained profits that places your trading account in a cumulative positive.

The ATR Channels, Gann HiLo activator bars and Envelopes custom indicator are used to create a blend that allows the technical tools exhibit their individual features i.e. gauge volatility, spot trend early and smoothen price respectively.

Chart Setup

MetaTrader4 Indicators: Gann HiLo activator bars.ex4 (Inputs Variable Modified; Lb=36), ATR Channels.ex4 (Default Setting), Envelopes.ex4 (Colors Modified; Lower Band=None)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Activator Channels Envelopes Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the blue Gann HiLo activator bars gets put on display within the activity chart as seen on Fig. 1.0, it is an indication that price is being taken higher i.e. a trigger to go long on the desired currency pair.
  2. If the red line of the ATR Channels custom indicator cuts across the blue Envelopes MT4 indicator (see Fig. 1.0) in a bottom up manner, a buy alert is said to be looming.

Stop Loss for Buy Entry: Place stop loss below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the red Gann HiLo activator bars custom indicator gets put on display during a bullish signal (refer to Fig. 1.0), it is an indication of weaning bulls power, as such an exit or take profit is duly advised.
  2. If the red line of the ATR Channels custom indicator intersects the blue Envelopes MT4 indicator to stay above it, an exit or take profit is recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red Gann HiLo activator bars gets placed on display within the activity chart as shown on Fig. 1.1, it is an indication that price is being pushed lower i.e. a trigger to go short on the selected fx pair.
  2. If the red line of the ATR Channels custom indicator cuts across the blue Envelopes MT4 indicator (refer to Fig. 1.1) in a top downward fashion, a sell alert is said to be on the horizon.

Stop Loss for Sell Entry: Place stop loss above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If the blue Gann HiLo activator bars custom indicator gets put on display during a bearish signal as illustrated on Fig. 1.1, it is an indication of halting bears power, as such an exit or take profit will do.
  2. If the red line of the ATR Channels custom indicator intersects the blue Envelopes MT4 indicator to stay below it, an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

Download the Activator Channels Envelopes Forex Trading Strategy

About The Trading Indicators

The Gann HiLo activator bars custom indicator is plotted over the activity chart and is essentially a simple moving average of the last three periods highs or lows plotted in relation to the HiLo Activator.

The ATR Channels custom indicator is an Average true range channels that gauges the volatility of the market.

The Envelopes MT4 indicator is a trend indicator that is built after the moving averages and is also tagged a Moving Average Envelopes.

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