Dynamic SR lines breakout system. As
the name suggests the basis for this system is dynamic
support\resistance level which price has struggle to break.
Time Frame 15 min or higher.
Currency pairs: any.
When
price touches this level we will wait for signs that price is
reversing- and will enter the trade.
The dynamic SR level will be the Moving
Average level. Preferably the 20- period Moving Average, though you
can use any other period.
Step 1: Waiting for the MA to
become sloped We wait for the MA to become sloped. This is a sign
that the trend is strong.A sloped moving average means that the trend
is strong and therefore any
retracement to the MA will probably
lead to a continuation in price, and a good trading signal for us to
trade.
Step 2: Wait for price to touch
MA Wait for price to touch the MA, and reverse. Reversal is confirmed
when price goes above the high of the previous candle (for long
trades) or below the low of the previous candle (for short trades).
Step 3: Placing Stop Loss
Stop Loss is placed:
• 5 pips below the lowest low of last
4 candles (for long trades)
• 5 pips above the highest high of
last 4 candles (for short trades)
Exiting the Trade
Trade is closed when the moving average
is no longer sloped = is flat.
Examples for trades
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