The Oracle trend following system is composed of 4 powerful trading indicators including the ATR volatility indicator.
This system provides entry signals in both bullish and bearish forex markets.
It also includes stop loss level and take profit target. It can be used on all currency pairs.
Used Indicators: 100 Pips Momentum, 100 Pips Power, 100 Pips Trend, 21 period Average True Range
Time Frame (s): 1 Hour chart and above
Preferred Currency Pairs: All
Preferred Market Sessions: All
Initiate long trade when the blue line crosses the red line from below + Oracle strength is blue + Oracle direction shows blue colored arrows.
Preferred stop for buy trade: Derived from the ATR(21) indicator. SL: 0.86 x ATR(21) value.
Preferred target for buy trade: Stop x 2 or better (for example risk: 90 pips, target: 180 pips)
Initiate short trade when the blue line crosses the red line from above + Oracle strength is red + Oracle direction shows red colored arrows.
Preferred stop for sell trade: Derived from the ATR(21) indicator. SL: 0.86 x ATR(21) value.
Preferred target for sell trade: Stop x 2 or better (for example risk: 60 pips, target: 120 pips)
Long Trade Example
ENTRY: Red line crosses blue line from below. Oracle strength indicator blue + Oracle direction indicator blue.
===> Open long trade at 1.3330 (EUR/USD).
STOP LOSS: 0.86 x ATR(21). The value of ATR(21) at time of entry was 95. Our stop loss would be 95 x 0.86 = 82 pips.
TARGET: Stop loss x 2 = 82 pips x 2 = 164 pips (1.3494).
RESULT: The EUR/USD buy trade went up in our favoured direction and hit the profit target. The trade was closed with 164 pips profit.