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.

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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.

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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.

 

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.

 

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Place Stop initial stop loss on the previous swing.

Profit Target discretionary

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