ATR Trailing Stop Forex Trading Strategy

The ATR Trailing Stop Forex trading strategy is a system that takes advantage of the market’s volatility, while trying to gauge how much an asset moves, on average, over a specified period.

Traders are able to place better orders and can access solid intraday trading capabilities when deploying this strategy.

The ATR Trailing Stop Forex trading strategy will certain help you better manage your emotional swings by spotting possible levels where trend will end.

Let’s check out how our trade setups will get ticked out.

Chart Setup

MetaTrader4 Indicators: atr-trailing-stop.ex4 (Inputs Variable Modified; BackPeriod=1000000, ATRPeriod=9, Factor=4, TypicalPrice=True), stealth-oscillator.ex4 (Inputs Variable Modified; SMAPeriod=24)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the ATR Trailing Stop Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If the blue line of the atr-trailing-stop Metatrader 4 forex indicator stay below the price bars as illustrated on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the designated currency pair
  2. If the lime horizontal line of the stealth-oscillator custom indicator pops up within the indicator window as depicted on Fig. 1.0, it is an indication of upward price pressures, therefore a buy order will suffice.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If while a bullish trend is ongoing, the atr-trailing-stop indicator pops up a red line that stays fairly above the candlesticks, bulls power is said to be diminishing, therefore an exit or take profit will suffice.
  2. If the stealth-oscillator indicator pops up a red horizontal signal line within its window, during a bullish trend (see Fig. 1.0), price is said to be in a likely U-turn, hence an exit or take profit will do.

Sell Entry Rules

Go short if the following setups gets displayed rightly on the activity chart:

  1. If the red line of the atr-trailing-stop custom indicator stay above the candlesticks as exemplified on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the selected forex pair
  2. If the red horizontal line of the stealth-oscillator custom indicator pops up within the indicator window as shown on Fig. 1.1, it is an indication of downward price pressures, therefore a sell order is appropriate.

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 while a bearish trend is running, the atr-trailing-stop indicator pops up a blue line that stays marginally below the price bars, more sellers are said to be closing their positions, therefore an exit or take profit is recommended.
  2. If the stealth-oscillator indicator pops up a lime horizontal signal line within its window, during a sell signal (see Fig. 1.0), price is said to be in a likely bullish reversal, therefore an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the ATR Trailing Stop Forex Trading Strategy

About The Trading Indicators

The atr-trailing-stop.ex4 is a technical indicator that trails stops as price continues to move within a currency pair.

The stealth-oscillator.ex4 is a Metatrader 4 forex indicator that combines the Simple Moving Average (SMA) and Least Squares Moving Average (LSMA).

The resultant indicator is an oscillator that is displayed within a separate window.

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