“NR -7” indicator will help us to find the candlestick, which has been traded in the narrow channel in the last seven days.
Based on this candlestick we will place pending orders: BUYSTOP and SELLSTOP or HIGH and LOW. Our goal is to detect impulsive motion and gain 50-100 points.
As you know, if a financial instrument has been traded in the narrow range for a long time, sooner or later it will sharply go either up or down.
In order to filter out false signals, the template of this strategy is supplied with the indicator that measures volatility. So our task is to place pending orders when HVR is above 0.5, which will help us to avoid excess noise.
In order to install the template and the indicator please download: https://www.liteforex.com/download/indicators/nr7.zip
After that move the content of the folder “indicators” to: C-> TERMINAL->EXPERTS-> Indicators
The template from the folder “templates” shall be moved to: C-> TERMINAL->templates Restart the terminal.
After that open the chart EUR/USD either with the daily or four-hour timeframe, click on it with the help of right mouse button and select -> Templates –> Strategy_nr7.
As soon as the template is installed, let’s move on to the trading strategy.
The way of placing orders: the candlestick is automatically marked with the red tick on top - that is the point from which pending orders will be placed:
BUYSTOP or HIGH at the distance of 15 points.
SELLSTOP or LOW at the distance of 15 points.
Remember, however, that HVR indicator shall not exceed the level of 0.5.
The level of stop-loss shall not exceed 20 points of HIGH or LOW.
The level of take profit shall be equal to 50-80 points.
If the order has not been activated within the next day, pending orders shall be cancelled; if, for example BUY STOP had been activated we shall immediately cancel SELL STOP.