ATR Ratio Forex Trading System Combines Whith Cycle Indicator and Trendline

ATR Ratio Forex Trading System this forex strategy combines a a cycle indicator with trendline that determinates the direction of the price.


ATR (Average True Range) is an easy to read technical indicator designed to read market volatility. When a Forex trader knows how to read ATR, they can use current volatility to gauge the placement of stop and limit orders on existing positions. Today we will take a look at ATR and how to apply it to our trading.

ATR is considered a volatility indicator as it measure the distance between a series of previous highs and lows, for a specific number or periods. ATR is displayed with a decimal to indicate the number of pips between the period highs and lows. This is important to a trader, as volatility increases so will a charts ATR value. As volatility declines, and the difference between the selected periods highs and lows decrease, so will ATR.

Traders can use ATR to actively manage their position in accordance to volatility. The greater the ATR reading is on a specific pair the wider the stop that should be used. This makes sense as a tight stop on a particularly volatile currency pair is more prone to be executed. As well a wide stop on a less volatile pair may make stops unnecessarily large. This can also hold true with limit orders. If ATR is a higher value, traders may seek more pips on a specific trade. Conversely, if ATR is indicating volatility is low, traders may temper their trading expectations with smaller limit orders.

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ATR Ratio Forex Trading System

 

  • Markets : Forex, Indicies and Commodities.
  • Time Frame : 60 min, 240 min, daily.

 

Metatrader Indicators:
  • ATR Ratio
  • Fast TMA line : TMA period 56, ATR multiplier 2.5, ATR period 100, show alerts true.
  • 1. Fast TMA line : TMA period 56, ATR multiplier 3.5, ATR period 100, show alerts true.
  • 1. Fast TMA line : TMA period 56, ATR multiplier 4.5, ATR period 100, show alerts true.
  • Trendline indicator;
  • Heiken Ashi,
  • Cycle Kroufur (8,16, 34, true, with smoothe moving average 2 period);
  • Bullish & Bearhis indicator (9);
  • Trend Bar Indicator.
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ATR Ratio Forex Trading Rules

 

Trade only in the direction of the trendline.

 

Buy Rules
  • ATR Ratio upward (red line above verticalblue line)
  • Wait that the price touches or broken lower TMA bands or bounce middle band;
  • Trendline violet as support;
  • Cycle Kroufur indicator crosses upward;
  • Bullish & Bearhis indicator green bar;
  • Trend Bar Indicator green bar.

 

Sell Rules
  • ATR Ratio upward (red line above verticalblue line)
  • Wait that the price touches or broken upper TMA bands or bounce middle band;
  • Trendline violet as support;
  • Cycle Kroufur indicator crosses downward;
  • Bullish & Bearhis indicator red bar;
  • Trend Bar Indicator red bar.

 

Place Stop initial stop loss on the previous swing.

Profit Target discretionary



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