Forex trading strategy #13 (Simple 1-2-3 swings)
Submitted by Edward Revy on February 28, 2007 - 15:30.
And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.
A trading setup requires only an open chart and no restrictions for the currency or timing preferences.
Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below (drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.
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Hi Florian,
I believe there is some misunderstanding regarding point 3 here...
If we place a stop "below point 3 at second OK" on the screen shot above, we won't be stopped...
Point 3 is the Lowest swing Low on the chart and is quite distant from our entry.
(A shadow that you've mentioned crosses only pivot line at point 2 (in pink)... Our stop order is below point 3 in pink.)
Regards,
Edward
PLIEASE I AM FROM NIGERIA AND A NEWBIE. I WOULD LIKE TO KNOW HOW TO PLOT THE MACD ON A METATRADER PLATFORM
On MT4 platform go to the menu on top
Insert -> Indicators -> Oscillators -> MACD
Leave standard settings 12, 26, 9, on close
Press OK
Edward:
Great strategy! Once the price has broken the "pivot line" and closes above (long) or below (short), do you place a market order or should you what for the new price bar to move 5 or so pips? Thanks, Lynn
Hi Lynn,
1. We wait for a first candle to close above/below pivot line.
2. Go in immediately with a new candle open.
Regards,
Edward
Please may i add this post for clarification
Forex 1-2-3 method.doc
Hi, Im a noob in forex and I only want to know how I could find the pivot point? or I need to calculate that with some formula? I really like to test your strategy but I don't know how to calculate pivot point please help. Thanks
Hi,
You may find ready numbers at Action Forex website.
If you'd like to learn more about pivots and/or make own calculations, this website will help: Forex pivot points
Regards,
Edward
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