forex "Complete attenuation" is a multi-strategy and allows you to catch peaks and troughs of the market, which in turn provide the potential to earn; the recommended time-frame - H1
Identify intraday reversals we are using:
1) a combination of 3 sets of Bollinger Bands Indicator - Bollinger Bands (20) with a deviation 1SD, 2SD, 3SD.
2) and RSI oscillator (14) with the levels of 30 and 70.
Bargain, we will be in that moment, as soon as the RSI indicator reaches overbought (above 70) or oversold (below 30) on the market. After the appearance of this signal, we will look for an opportunity to make a deal on the market reversal.
With three sets of Bollinger Bands, we will determine the point of exhaustion. The main reason is because we use just these 3 sets of indicator Bollinger bands is that they help us to identify the end of the motion, together with the degree of possible rollback in the market.
If the price has reached bollinzhdera third band, then it is a signal that it is in the "extreme zone". As soon as we go away from the band 3rd standard deviation Bollinger in the area between 1 st and 2 nd indicator Bollinger bands, we already know that the currency rates at the moment has reached its extreme point, and enters into a phase reversal.
The main condition of the deal is to have at least 1 second candle, closed between the 2nd and the 1st standard deviation Bollinger.
Conclude a deal to buy if:
1. RSI (Relative Strength Index) is below its level 30.
2. Price reached the 3rd Bollinger Bands (3SD)
3. After that, the candle on the H1 rose from the 3SD-2SD zone to zone Bollinger 2SD-1SD.
4. Only after the 1st candle closes within the zone Bollinger 2SD-1SD, we conclude 2 equal transaction to purchase at market price.
5. Place a stop loss order at 10 pips below the last local minimum.
6. Set the take profit at a distance equal to the stop-loss for the 1st transaction.
7. Once the first profit target will be achieved, move the stop-loss 2-second transaction to breakeven.
