Very often transactions for the purchase of upstream and transactions for sale in a downtrend for most FOREX traders do not coincide with the rhythm present in the moment on the market. Note that we do not see a situation where the trade process is in the process of origin of the trend.
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This forex strategy "3 Touch" we'll talk about how to behave in an existing trend in the market. And in this case the best entry points into the market based on the use of trend lines using a support or resistance, which are determined using the last completed trends.
Forex Strategy "s touch" works well on day intervals as well zhechasovyh and a 30-minute on all currency pairs.
I suggest you consider the 2 best points that allow us to conclude the deal with a fairly high probability of making a profit at a relatively low probability of risk in the current market trend. In each of them mybudem use limit orders (Buy Limit and Sell Limit), and only sometimes - the transaction will be concluded on market orders, and that if there are very good reasons for this.
Consider point 1 - Conclusion of the transaction for the purchase of the uptrend line at 3rd contact with him.
We emeem deal with a rising trend, if the successive maxima and minima increases. We thus have the opportunity to spend an upward line on the 2nd lows prices, which have an absolute respect to the bottom at least 2 previous and 2 subsequent candles.
In this situation, the best time to make a deal for the purchase occurs when the 3rd touch of prices rising trend line. At this point, of course, you need to buy - and be sure to buy (see Figure 1.).
Stop-loss, it is necessary to deliver:
at the conclusion of the transaction on limit orders - for the 2nd minimum or below the resistance line of 20-30 points (as possible below the important Fibonacci level)
Entering the market for a market order, the formation of a reversal candle and the rebound from the resistance line (and always at close of the candle on the selected time interval) - below the resistance line and respectively below the candles during the 3rd touched by 10-15 points (depending on the selected currency pair and time interval).
Take Profit is determined by the Fibonacci extensions or postavte on important local maximum, or no stavte and use a trailing stop and close the deal in parts.
Taking advantage of this trading strategy, you must first determine price levels. Of course the best option - use this daily price charts, where each of the last day will have its own price level. A more accurate alignment can be performed using for this H1 or M30 price charts.
