Stretch indicator and Damiani Volameter Forex Volatility Strategy For MT4
The Stretch indicator and Damiani Volameter Forex Volatility Strategy For MT4 works exceptionally well on the 30 minute time frame and the one hour time frame - this strategy is applicable to currency trading pairs. In it is what is called a Stretch indicator and this indicator is simply plotted as a result of a formula which takes the ten period Simple Moving Average of the absolute difference between the open and either the low or high, it all depends on which resulting difference is smaller.
This essentially represents the lowest average price deviation from the opening price during a specific period of time which is then used to calculate the thresholds for the breakouts. This indicator works great for gauging the movement of deviation, additionally it may also be set using multiple time frames for the breakout channel however this setting is left to the feel and discretion of the trader.
Included in this great strategy are four indicators namely the Nina Step Stochastic indicator which comes with a blue (buy) Arrow and red(sell) arrow, then there is the Damiani Volameter indicator which is set to default, there is the Goldminer indicator and obviously the Stretch indicator itself. This strategy also uses the Pivot point indicator which may be used as a preferred guideline for setting take profit targets whenever suitable signals are being generated.
There are rules for buy and sell signals which also come with predefined or set exit strategies in place. For buy entries the blue arrow of the Nina Step stochastic has to show up whilst the green line of the Damiani Volameter indicator has to be greater than the grey line, the Gold Miner 2 indicator must be in an aqua color and then the green bars of the Stretch indicator should be greater than the MA.
Then for the sell conditions to be met the Nina Step Stochastic indicator must give a red arrow whereby the Gold miner two indicator must be red in color . As for the exit rules - the trader may use the Pivot point as their first take profit target with the stop loss set at the previous swing.
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