Forex Strategies Resources

35#NR4-IB pattern Trading System

Submit by Janus Trader 06/06/2012

 

Time Frame H4 or higher

Currency pairs:all.

 

Indicators

Historical Volatility Ratio

VM price action (Set everything to "false" except IBS4 )

MA3

 

Let’s take a look at each one in complete detail so there is nothing left to guess work. We

will start by looking at both the NR4 and IB and then move into looking at the HVR.

This seems to be the most logical progression in this case.

The NR4/IB Set Up

The NR4/IB set up is a combination of a narrow range bar that is the smallest of the last four bars while at the same time is an inside bar against the previous bar.

Let’s look at each component and bring it together so you can easily identify this set up.

 

HVR Forex Indicator
HVR.rar
compressed file archive [2.2 KB]
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(NR4Narrow Range 4 Bar: (above) A NR4 is a bar with the smallest range of the

previous four bars to include the current bar.



 

 

IBInside Bar: An inside bar is a bar where as the high is equal to or lower

than the prior bars high and the low is equal to or higher than the prior low. It’s

important to note here that only the high OR the low can be equal to the prior high

or low – not both. It’s crucial that either the high or low be inside of the prior range.

 

 


(NR4/IBNarrow Range 4 Inside Bar: (above) To have an Inside Bar Narrow Range

the current bar has to be a combination of both a NR4 and Inside Bar as describe above.

 

 

nr4-ib Template
Trading System
nr4-ib.rar
compressed file archive [2.0 KB]
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Long Entry

Once a NR4/IB has been identified, if the pattern is above the MA

place a buy stop order one pips above the high of the NR4/IB bar.

 

Short Entry

Once a NR4/IB has been identified, if the pattern is below the MA

place a sell stop order one pips below the low of the NR4/IB bar.

 

Stop loss

10 pips below the low or high of the same NR4/IB bar.


Profit Target

20-30 pips for 4h TF;

40-60 pips for daily TF.

 

Optional filter:

Entry only if Hvr is below of 1.00

VM_Price_Action_1.2
Forex System
VM_Price_Action_1.2.rar
compressed file archive [18.8 KB]
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