This forex strategy is based on the penetration and rebound from the significant levels.
The essence of this forex strategy when trading level, lies in the following:
If the price, once bounce on some points, it is likely that it will rebound from it again, and if it breaks this point, the acceleration at the same time it will be very good to the trader could earn in the direction of the breakout, pre-opening position.
Consider the example below:
The figure shows an important level for USDJPY 20 th March, the arrows indicate the direction of the price movement on the chart, the lines - stop-loss level, at a penetration trading position which automatically takes place in the opposite direction. Further, when after 15-20 points (depending on the volatility of the currency pair), an open position or swap to zero or treylinguem.
As evidence of breaking or rebound from the important levels can be used:
Rebound - if the price on the chart took a long way to the top without a corrective movement, with respect to other trends.
Break - price often "rests" in the important level, gradually, at the same time, bringing Low rebounds.
