Killer Forex Strategy is
based on Support and resistence lines.
Time Frame 5 min or
higher but on higher timeframes are more reliable H1, H4, H6 H8 or
daily chart.
Trading Rules
Identify the S/R areas
and mark them off on the chart. Why do we use S/R? Because this is
what the big forex players as the banks, the institutions, and the
proprietary trading firms.
Only trades with the
trend.
Price makes a particular
bar formation which “triggers” our entry into a trade.
We use a final “trigger”
which tells us exactly when to enter a trade.
This trigger is in the
form of what we call a „Pinbar‟.
This Pinbar tells us that
the market is being rejected off a particular price area and is
heading the other way. Not only this – but the bar tells us the
specific level at which to place our stoploss.
First we identify the
recent S/R levels, This is done as easily as this:
Now that we have our S/R
we wait for price to come back to the S/R area just like in this
trade example:
If we zoom in a little we
can see our “trigger” on this trade; a Pinbar right at the S/R
level as the market TELLS us where it is going (hint: down!):
And sure enough the
market drops:
This was the entry to the
strategy; the exit is just as important.
I will now go through an
extremely effective and profitable exit strategy for you.
I‟m going to go through
the final part of the strategy quickly and then provide you with a
very limited opportunity to get access an amazing Forex strategy that
is even more effective than this one (again, it‟s for traders who
have day jobs) – the strategy is much more powerful than this one –
which should give you an idea of what to expect… more on this
later.
How To Exit Your Trade
This following exit
strategy, although extremely simple, is very effective. It will get
you out of a bad trade quickly – also keep you in a good trade when
you get on a big move.
The 2-Bar Trailing
Stoploss
When you enter a trade,
you place your stoploss initially behind the bar you enter, and then
you trail it after that. Each new bar that is made, you move the
stoploss up to behind the lowest of the previous two bars - this is
for a long.
For a short trade, you
trail the stop behind the highest of the previous two bars, as the
market continues down. When your stoploss is hit you‟re out of the
trade.
If you‟re still a
little unsure of exactly what I mean then take a look at this chart:
Further Strategy Tips,
Tricks & Guidance
- Remember that, because
you are entering with the trend, at an S/R level and on a pullback
with a reliable Pinbar confirmation –
many times you will be in
a very good position to take part in a BIG move.
- This is not a
countertrend strategy so there is no reason to just grab a few pips –
many times you will get large runners that gain hundreds and
thousands of pips.
- This strategy is for
the higher timeframes mainly. It can be used on lower timeframes but,
be warned, it is not as easy to trade.
- One final thought… do
not overanalyse. It is easy to do this because you feel you should
be spending a lot of time checking your charts each day. This
strategy, whatever way you try to trade it, requires very little
time. You can check 20+ pairs a day in less than 10 minutes – don‟t
spend time trying to find trades that are not there.
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