Let's consider a manual trading strategy based on the Gann Hilo indicator and graphical construction of trend lines. For work it is recommended to choose clearly trending currency pairs, the author sticks to instruments with the Australian dollar, as well as small timeframes — M5.

The strategy has a warning that it is rather accompanying and to a large extent subjective, as everyone can build a trend line according to their own opinion. However, if you adapt, it will prove to be quite easy to execute and profitable.

Trading strategy settings

• Currency pairs: trending, e.g. AUDCAD, EURAUD
• Timeframe: М5
• Trading time: any
• Indicators: EJ_CandleTime and Gann Hi-lo Activator SSL (100)

Trading strategy rules

Install the indicators on your chart with the Gann Hi-lo Activator SSL period required to be changed to 100. Then observe.

Rules for opening a buy deal

1. The price has crossed the Gann Hi-lo Activator SSL indicator from bottom to top and is above it.
2. After the crossover, price consolidates into a sideways trend or shows a correction.
3. Draw a trend line by corrections on your own.
4. We open a trade on the breakdown of the trend line upwards, in the continuation of the trend, in case the price continues to stay below the indicator Gann Hi-lo Activator SSL.
5. To open a deal a candle must be closed. EJ_CandleTime indicator will show the closing time.
6. Stop loss is set just below the Gann Hi-lo Activator SSL indicator. Profit should be 2 times higher than the risk.

ForTrader.org magazine recommends not opening a trade if visually your stop loss is too high, as there is a possibility of not waiting for a profit.

Rules of opening a deal on sale

The terms on the sale will be reversed:

1. Price has crossed the Gann Hi-lo Activator SSL indicator from top to bottom and is below it.
2. After the crossover, price consolidates into a sideways trend or shows a correction.
3. Draw a trend line on the correction by yourself.
4. We open a trade on the breakdown of the trend line downward, in the continuation of the trend, in case the price continues to stay above the indicator Gann Hi-lo Activator SSL.
5. To open a deal a candle must be closed. EJ_CandleTime indicator will show the closing time.
6. Stop Loss set just above the Gann Hi-lo Activator SSL indicator. Profit should be 2 times higher than the risk.

Again, we recommend not opening a trade if visually your stop loss is too large.

An example of how the strategy works

While we were writing the description of the strategy, a sell signal was recorded on EURAUD pair. The result is in front of you:

Given the small timeframe, we would still recommend taking short profits without focusing on the Gann indicator. But it remains at your discretion.

Download

• Indicator EJ_CandleTime | The journal's recommended analog
• Gann Hi-lo Activator SSL Indicator