Hey traders! Today, we’re diving into a powerful trading strategy that focuses on the volatile swings of the market. The core idea is straightforward: when a trend forms, it typically consists of impulse and correction waves. Impulse waves are where the action happens—high volatility bars that signal a rapid movement in the direction of the trend.
The goal here? To jump into the market right at the start of that impulse.
So, how does our Expert Advisor (EA) come into play? It tracks the trend using the Alligator indicator on the H4 chart, while monitoring volatility on the M30 chart. Your entry point is when the market explodes in the direction of the trend. But there’s a catch: the bar showing increased volatility must break out of the previous 24 bars—meaning it has to exceed its prior price range.
- VolN: This is how many times the volatility of the current bar needs to exceed the average volatility for the selected period.
- ATR: This stands for Average True Range, which helps gauge the volatility period.
- ns: The stop loss factor, which is linked to volatility.
- np: The take profit factor, also tied to volatility.
Important note!
This EA operates on the M30 chart and is designed to work well across various financial instruments, including those with 4- and 5-digit quotes. It’s particularly fine-tuned for gold and can accommodate highly volatile pairs. You can optimize it further by analyzing opening prices.
I’m all ears for any suggestions you might have on improving this idea!
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