Forex Jim Berg Trading Strategy
Forex Jim Berg Trading Strategy:
Jim Berg trading system for Metatrader 4. Jim Berger is a method for trading based on the Volatility and RSI. The source of this Method is Stock and Commodities Magazine “ The Trout About Volatility”. The purpose of Jim Berger is to answer these questions: Many indicators can help identify volatility. But can you use them to target specific price areas for entry signals, trailing stops, and profittaking opportunities?
ENTERING TRADES Next, I bring up a daily chart and look for temporary oversold conditions in the rising security. To do this I apply the relative strength index (RSI), an oscillator I am sure you are familiar with. The RSI compares the average of rising price change to falling price changes. I use a seven-day time period, but you may choose to use a different one. You can see the RSI plotted in the lower chart in Figure 3. A security is considered to be potentially oversold when the RSI oscillator drops to 30. As you can see, this occurred on six occasions after the June weekly signal. It happened in July, September, and December 2003, and March, July, and October 2004. The oversold areas are circled. The addition of the RSI prepares me to purchase shares in BA once prices resume their rising movement. Since I am only going to enter the market after the RSI indicates that price has reached an oversold area, I will always miss the beginning of every move. My entry point occurs when the closing price has moved a distance that is equivalent to twice the average true range of the last 10 days from the recent low. I have programmed my software package to paint the bars blue once this criteria is met and red when the closing price has moved a distance equivalent to twice the ATR of the last 10 days from the recent high. Entry signal: If the close is greater than the lowest low value (based on the low of the last 20 days) plus twice the 10-day ATR, then enter a long position. C>(LLV(L,20) + 2*ATR(10)) Exit signal: If the close is less than the highest high value (based on the high of the last 20 days) minus twice the 10-day ATR, then exit your position. FIGURE 2: A SECURITY IN A RISING TREND. Price movement meets the criteria for a rising trend. FIGURE 3: USING ADDITIONAL INDICATORS.If you missed the first opportunity, have no fear. Using other indicators such as the RSI may help you enter at a later stage and still make successful trades. C<(HHV(H,20)-2*ATR(10))
In Figure 3, you see the RSI oversold areas and the corresponding blue bar volatility entry levels (arrows). I placed my initial stop just under the recent low, but once prices continued to rise, I applied a volatility trailing stop. After two consecutive closes below the trailing stop, I exited the position. I placed the stop at two times the ATR subtracted from the close. C–2*ATR(10) This indicator rises and falls with the level of volatility and higher or lower closing prices, and hence, I don’t want to lower the trailing stop. Instead, I adjust the formula to stay at the highest level reached for a period of 15 days or weeks, depending on which time frame I am using for the chart. HHV(C-2*ATR(10),15)
Time Frame 4H or higher.
Currencu pairs: any.
Metatrader Indicators:
Jim Berger ATR 2.0
RSI 7 period.
Line Yellow trailing Stop line.
Profit Target: tips 1.5 ratio stop loss.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Jim Berg Trading Strategy?
- Download Forex Jim Berg Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Jim Berg Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
