For this strategy Broker can be any, but preferably with MT4 >>
Often, in-depth study on the market for a long time leads to a smoothing in the memory of the basic rules, which have been studied in the beginning. That is, the more complex models, combinations and strategies forex trader is studying, the less it pays attention to the primary rules of the market, which often leads to not correct conclusions on the current situation. Market Foundations are its pillars, foundation, without which the trader movement on the chart may seem chaotic and not understandable.
And so that these rules determine the trend:
- With an upward trend each subsequent peak higher than the previous, and every subsequent minimum wage higher than the previous;
- In a downtrend at least every subsequent lower than the previous peak and each subsequent lower than the previous high;
- Sideways, these conditions are not met.
Thus, to determine the trend, we need to identify the last four extremum (minimum of two and a maximum of two). Unlike models 1-2-3dannoe rule allows to protect themselves from possible formation of the ABC correction.
This trading method can be used on any instrument and in any slot, but do not drop below 15 min interval, and it is better to trade, starting with the time schedule.
For more strategy signals used exponential moving average with period 24.
The conclusion of transactions for the purchase of Forex Strategy «True trend»:
1) After a downward movement (not necessarily strong downtrend) price pulls back up from the minimum values and the graph formed two uplink maximum and minimum of two uplink. Thus we define the current trend is upward.
2) According to the last peak we draw a horizontal line.
3) As soon as the next candle closes above the horizontal line, we open a buy order:
4) If the price is already far from the horizontal line, it is possible to wait for the rollback to it and only have to enter the market on the limit order.
5) Stop-loss is set at a minimum of the last.
6) Once closed the next candle after the entry into the market, the stop tolerated under the moving average (assuming that the price is above the MA) and then after each candle move the stop order under the corresponding value of AI, but no closer to the opening price of 40 of (4-x sign!) (this rule concerns timeslots since H1).
7) After the price range in the positive area, which is equal to the size of the initial stop, translate the transaction to breakeven.
8) Take Profit equals two stop-loss - 20%. That is, if the foot size - 50 points, the profit is equal to 2 x 50-20% = 100 - 20% = 80 points.
Profits can also fix on a moving average that is constantly continue to rearrange the stop order (even in the positive zone) under the moving average.
Sales by the rules «True trend» trading strategy:
1) After the explicit upward movement (not necessarily strong uptrend) price rolls down from the maximum value and the chart form two downlink minimum and maximum two downstream. Thus we define the current trend is downward.
2) According to the last minimum, we draw a horizontal line.
3) As soon as the next candle closes below the horizontal line, we open for sale transaction.
4) If the price is to be carried out far away from the horizontal line, it is possible to wait for the rollback to it and only have to enter the market on a limit order to sell.
5) A safety stop-loss order is set above the last peak.
6) Once closed the next candle after the entry into the market, the stop tolerated for the moving average (provided that the price is below the MA) and then after each candle move the stop-loss for the corresponding value of AI, but no closer to the opening price than 40p (the rules for time slots with N1 or higher).
7) After the price range in the positive area, which is equal to the size of the initial safety stop, the deal translate into a break-even level.
8) Take Profit equals two stop-loss - 20%. That is, if the foot size - 50 points, the profit is equal to 2 x 50-20% = 100 - 20% = 80 points.
Profits can also fix on a moving average that is constantly continue to rearrange the stop order (even in the positive zone) for a set moving average.
Additions to the forex strategy:
1) In principle, this model is a reversal, but you can sell it and leaving the lateral movement, provided that the last high / low shot maximum / minimum value of the side of the corridor.
2) Of course, the first time beginners will be quite difficult to pinpoint a particular minimum or maximum, but did not recommend to make this easier to use the Zig-Zag indicator, since the size of the waves can be different and the indicator can not be seen or wrong to see the already formed model . Be patient and in time and with practice you will be able to easily recognize and desired extremes.
3) If aggressive trading style, you can enter the market on a census of each peak in an uptrend, and at a minimum at each census downtrend. But this option has overestimated the risks!
