The Trend Activator Bars forex trading strategy is a well-built system that will take you through not just a string of wins, but also aid in the management of losses.
The Gann HiLo activator bars and TrendRSI_v1 custom indicators has the ability to scope the market for profitable entries and possible breakouts.
Chart Setup
MetaTrader4 Indicators: Gann HiLo activator bars.ex4 (Inputs Variable Modified; Lb=24, Colors Width; #0=4, #1=4), TrendRSI_v1.ex4 (Colors Modified; #0=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
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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:
- If the blue Gann HiLo activator bars gets put on display as shown on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the designated forex pair.
- If the sky blue line of the TrendRSI_v1 custom indicator hovers above the magenta line as seen on Fig. 1.0, the overall market sentiment is said to be bullish, hence a trigger to go long on the selected fx pair.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If a red Gann HiLo activator bars pop up on the activity chart while a buy signal is running, it is an indication of weaning bulls power, as such an exit or take profit will suffice.
- If the sky blue line of the TrendRSI_v1 custom indicator intersects the magenta line to dip below, a bearish reversal is said to be looming, as such an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red Gann HiLo activator bars gets put on display as depicted on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the selected currency pair.
- If the magenta line of the TrendRSI_v1 custom indicator hovers above the sky blue line as illustrated on Fig. 1.1, the general market sentiment is said to be bearish, hence a trigger to go short on the selected forex pair.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If a blue Gann HiLo activator bars pop up on the activity chart while a sell signal is ongoing, it is an indication of halting bears power, as such an exit or take profit is advised.
- If the sky blue line of the TrendRSI_v1 custom indicator intersects the magenta line to surge above (see Fig. 1.1), a bullish reversal is said to be imminent, as such an exit or take profit is recommended.
Sell Trade Example
Fig. 1.1
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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 TrendRSI_v1 custom indicator is an RSI indicator that is comprised of two signal lines, and can be used to determine breakout.