Forex trading strategy #4 (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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Hello everyone,
This is an update on 1-2-3 exit strategy.
To project exit targets we’ll be using Fibonacci Expansion (FE) tool.
(Short guidance to getting FE tool on MT4 platform:
Right click on the menu panel from where you usually select a trend line tool and choose "Customise…"
A window will pop up. Choose and add Fibonacci expansion tool there.
When applying Fibonacci Expansion to the charts, start with Point 1. Then align FE to touch all 1-2-3 points.
Your profit target will be the 161.8 Fibonacci Expansion level.
Simple and working well!
Below are just some examples:
I've also added Stochastic just to show how you can pick tops and bottoms for your 1-2-3 calculation without too much efforts.
Happy trading!
Edward
For Entry Point we can use:
Sell ENTRY :
Point 3 - (Point 1 - point 2 / 4)
BUY ENTRY :
Point 3 + ( Point 2 - Point 1 / 4)
All the Best;
Manus168
Manus168
That's some interesting addition.
Thank you!
I should try it out.
Regards,
Edward
You're Welcome Edward; Best Regards: Manus168 Brrrrrrrrr .... :)
Hi Edward,
I can't find the Fib Expansion Tool on my Metatrader control panel. Can you post a download for us please?
Thanks for all you do!
Al
Hi Al,
This tool should be within the Platform by default.
Unlike indicators, tools cannot be uploaded.
Try downloading a Platform from another MT4 broker to see if you will be able to find Fib Expansion there.
Regards,
Edward
P.S. I was told you can try IBFX - they have the FE tool.
i still do not understand that entry points when i tested it on a previous market i have me point 1=87.702, point 2=88.800, point 3=88.130 applying the buy entry formular i have 88.130+(88.800-(87.130/4))=155.1475 approx. 155.1500 so i dont really know how that will be a buy entry am a bit confused can u pls put me through may be i get things mixed up the currencies are U/J 30min at 11.00 18/12/2008 u can view the pics below
Please, try uploading pictures again, make sure to manually add the links which you'll receive upon uploading files into your comment, otherwise we won't be able to find your screenshots.
Thomas
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