OBV Activator Fish Forex Trading Strategy

The OBV Activator Fish forex trading strategy is able to forecast future trends and measure bull and bear strengths, predominantly in the short-term and medium term.

The Gann HiLo activator Bars, On Balance Volume and FX_Fish technical indicators gives the strategy the fuel it requires to scan the market for profitable entries.

It will interest you to know that the added indicators individually will measure bull and bear power (OBV), gauge future trend (Gann HiLo activator Bars) and spot reversals (FX_Fish).

Chart Setup

MetaTrader4 Indicators: Gann HiLo activator Bars.ex4 (Inputs Variable Modified; Lb=20, Colors Width Modified; #0=2, #1=2), On Balance Volume.ex4 (Default Setting), FX_Fish.ex4 (Inputs Variable Modified; period=24)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the OBV Activator Fish Forex Trading Strategy 

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following rules or conditions hold sway:

  1. If the light sea green line of the OBV MT4 indicator grows, while price drops i.e. a divergence (see Fig. 1.0), a buy trigger is said to be looming.
  2. If the blue bars of the Gann HiLo activator Bars custom indicator gets displayed on the activity chart, a buy trigger is said to be in the offing.
  3. If the lime histograms of the FX_Fish custom indicator gets placed above the 0.00 level as seen on Fig. 1.0, price is said to be taken higher i.e. a trigger to go long on the designated forex pair.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If price breaks below the blue trendline drawn on the light sea green line of the OBV indicator, an exit or take profit will suffice.
  2. If the bars of the Gann HiLo activator Bars custom indicator turns red as depicted on Fig. 1.0, an exit or take profit is duly recommended.
  3. If the histograms of the FX_Fish custom indicator turns red while buy orders are being locked in, it is indicative of a bearish reversal, as such an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the light sea green line of the OBV MT4 indicator declines, while price also drops as illustrated on Fig. 1.1, a sell trigger is said to be imminent.
  2. If the red bars of the Gann HiLo activator Bars custom indicator gets displayed on the activity chart, a sell trigger is said to be in the cards.
  3. If the red histograms of the FX_Fish custom indicator gets aligned below the 0.00 level as shown on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the selected fx pair.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price breaks above the blue trendline drawn on the light sea green line of the OBV indicator, an exit or take profit should be considered.
  2. If the bars of the Gann HiLo activator Bars custom indicator turns blue while sell orders are ongoing, an exit or take profit is advised.
  3. If the histograms of the FX_Fish custom indicator turns lime while sell positions are locked in, it is indicative of a bullish reversal, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the OBV Activator Fish 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 FX_Fish custom indicator is an oscillator that can be used in defining trend i.e. the lime & red histograms are both used to depict bullish & bearish trends respectively.

The On Balance Volume (OBV) MT4 indicator was developed by Joe Granville around the 1960s, and can be used to gauge whether volume was driving price higher or lower.

Share Now!