PBar Trading method

1. Stochastics (3,2,2) on Close/Close
2. ADX set to 1 - We make only the -DI visible and mask the other lines by choosing same background color for them or by setting their color to none. We also set a limit level of 16 on the ADX.
3. RSI (2) on Weighted Close with a limit level at 50
You can set your charts manually or you can download the template at the bottom and apply it to any of your charts instantly, thus saving you the effort to set the charts manually. After your charts are setup, it will be looking as the screenshot below.

PBar Trading Method
As we can see, there are 3 different indicators in this trading strategy and we are going to use each of them for a specific purpose. The RSI will be used to determine the short mini trends which are developing and should be the first on our observation list. The second one is the ADX indicator and this one will be used to determine our buy and sell entry indicator... And the last one will be used for the exit as you might have already guessed.
When to Buy?
We are going to buy the currency when the following rules has been met.1. The RSI(2) should be above the 50 line, hence showing a bullish bias of the market2. ADX(1) should drop below the 16 line, hence showing an oversold regionThese are real simple rules and you should follow them closely. Once both of them happens, you just stop thinking and open a long position immediately.
When to Sell?
We are going to sell the currency when the following rules has been met.
1. The RSI(2) should be below the 50 line, hence showing a bearish bias of the market
2. ADX(1) should move above the 16 line, hence showing an overbought region
These are real simple rules and you should follow them closely. Once both of them happens, you just stop thinking and open a short position immediately.
Where to place the stoploss?
We should never be trading without stoplosses... however, if you are in front of the pc and monitoring your trades, you can trade without the stop loss and watch your positions closely. The Stoploss for this method can range from 50pips to 90pips depending on the pair we are working with. The pair with low volatility like the eurchf will use a smaller stoploss versus a high volatility pair such as the gbpjpy. You can use fixed stoploss as above or you can place your stoploss at recent swing highs or swing lows. Or even place stop loss at the lowest for the 3 recent bars before your current one for the buy position and at the highest of the 3 recent bars before your current bar for the sell position.
When to close the positions?
You are going to close your positions when you have a cross of the stochastics indicator. We close the buy when the Stochastics is at the top and crossed with the dotted signal line and start moving down and we are closing the short position when the stochastics is at the bottom and crossed with the signal dotted line and starting to go up. You can come up with different methods as well to close your positions.
This is a very simple and easy system that anyone can learn to apply and master. Make sure you read and have lots of practice on the demo account before you decide to use it in the real markets. Good luck and all the best.

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