The Gann Hi Lo forex trading strategy asides being an exciting strategy for the currency markets, can also be extended well into trading Stocks and Commodities.
It is a visually appealing strategy that strikes a nod when being examined and trend setups can be easily spotted.
Chart Setup
MetaTrader4 Indicators: Gann HiLo activator bars.ex4 (Input Variable modified; Lb=18), freeRSI.ex4 (default setting)
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
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets displayed:
- If the blue bars of the Gann HiLo activator bars.ex4 custom indicator gets thrown up on the activity chart as seen on Fig. 1.0, price is said to be pressured higher i.e. a signal to go long on the currency pair of interest.
- If the lines (dotted magenta & yellow, deep sky blue and lime green) of the freeRSI.ex4 cutom indicator breaks and hovers above the 50.00 level as depicted on Fig. 1.0, the sentiment in the market is said to be somewhat bullish, hence a trigger to go long on the asset of choice.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following holds true:
- If the red bar of the Gann HiLo activator bars.ex4 custom indicator is spotted while a bullish signal is ongoing, price is said to be experiencing a bearish reversal to a certain degree, hence an exit or take profit is recommended.
- If the dotted magenta and filled deep sky blue lines of the freeRSI.ex4 custom indicator break below the 50.00 level, it is a trigger to exit or take profit without delay.
Sell Entry Rules
Enter a sell if the following rules or conditions take precedence:
- If the red bars of the Gann HiLo activator bars.ex4 custom indicator gets thrown up on the activity chart as shown on Fig. 1.1, price is said to be pushed lower i.e. a signal to go short on the fx pair of interest.
- If the lines (dotted magenta & yellow, deep sky blue and lime green) of the freeRSI.ex4 custom indicator breaks and stays below the 50.00 level as illustrated on Fig. 1.1, the sentiment in the market is said to be somewhat bearish, hence a trigger to sell the designated pair.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the blue bar of the Gann HiLo activator bars.ex4 custom indicator is spotted while a sell signal is continuing, price is said to be experiencing a bullish reversal to a large extent, hence an exit or take profit is recommended.
- If the dotted magenta and filled deep sky blue lines of the freeRSI.ex4 custom indicator break above the 50.00 level, it is a trigger to exit or take profit without delay.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The freeRSI.ex4 custom indicator is an advanced RSI indicator that built on the RSI indicator itself, Envelope periods and 3 Moving Averages.
The Gann HiLo activator bars.ex4 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.