ATR Trend Trailing Forex Trading Strategy

The ATR Trend Trailing Forex trading strategy is designed to exploit new price territories where profit taking becomes easiest.

Understanding where price trend is heading and what price zones are fit for a buy or sell are every trader’s delight.

In order to find these price characteristics, we have formulated a strategy that takes advantage of a set of rules that identifies where price may be in the future.

The ATR Trend Trailing Forex trading strategy is not widely known but, we have designed it in a manner that simplifies trend scanning in the foreign exchange market.

Chart Setup

MetaTrader4 Indicators: ATRTrailStopV3 alerts.ex4 (Inputs Variable Modified; BackPeriod=200000, ATRPeriod=28, Factor=3.0, CloseBase=True), zerolag-macd-indicator.ex4 (Inputs Variable Modified; FastEMA=24, SlowEMA=28)

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 Trend Trailing 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 dots of the ATRTrailStopV3 alerts Metatrader 4 forex indicator gets queued below the candlesticks as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to go long on the designated forex pair.
  2. If the orange line & magenta histograms of the zerolag-macd-indicator gets stacked above the 0.00 reference level as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the selected currency pair.

Stop Loss for Buy Entry: Place stop loss 1-3 pips below 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 a red dot of the ATRTrailStopV3 alerts indicator pops up slightly above the price bars during a bullish signal, bulls power is said to be weaning, therefore an exit or take profit is recommended.
  2. If the orange line of the zerolag-macd-indicator breaks below the 0.00 level while a bullish trend is running, it is indicative of a likely bearish reversal, as such an exit or take profit will suffice.

Sell Entry Rules

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

  1. If the red dots of the ATRTrailStopV3 alerts indicator gets queued above the price bars (see Fig. 1.1), price is said to be pushed lower i.e. a trigger to go short on the selected fx pair.
  2. If the orange line & magenta histograms of the zerolag-macd-indicator gets stacked below the 0.00 center line as exemplified on Fig. 1.1, bears are said to be driving price lower i.e. a trigger to go short on the currency pair of interest.

Stop Loss for Sell Entry: Place stop loss 1-3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If a blue dot of the ATRTrailStopV3 alerts indicator pops up marginally below the candlesticks while a bearish trend is ongoing, bears power is said to be halting, therefore an exit or take profit is advised.
  2. If the orange line of the zerolag-macd-indicator surges above the 0.00 level during a bearish trend, it is indicative that a bullish reversal is looming, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The ATRTrailStopV3 alerts.ex4 is a modified average true range indicator, with an added alert on/off feature.

The zerolag-macd-indicator.ex4 is a Moving Average Convergence/Divergence Indicator with zero delay.

When compared to the standard MACD indicator, the ZeroLag MACD issues its signals a few bars earlier.

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