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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Hi Edward,
Mind if you me take a look on the pic below, to see if I have done it correctly?
Regards,
Kit
To AG: MACD should be above zero to buy, and below zero to sell. 1-2-3 setup doesn't have any zero level to refer to.
To Kit: yes, that's correct.
Happy trading!
Edward
Le cose più semplici sono a volte le migliori!!!
.....qualcosa a che fare con l'uncino di J.Ross
Complimenti grande scoperta!!!!
p.s. consiglio a tutti da evitare con b.b. strette in lateralita!!!...vero???
The simplest things are sometimes the best! ..... something to do with the hook of J. Ross Congratulations great discovery!! P.S. advice to all be avoided with b.b. narrow lateral !!!... right??
Hi Edward,
Can I ask to confirm, we do not need the setup of 1-2-3 in the sell mode of MACD, we only need the candle at the point of entry to be in the sell mode. Am I right?
Jas
Hi Jas,
a screenshot would help, because I'm not sure I understand your question correctly.
When MACD is in the Sell mode, we need 1-2-3 to enter.
If 1-2-3 has formed before the MACD signal, then we need to wait for MACD to get into the Sell mode and then enter, this time without further 1-2-3 confirmation.
Best regards,
Edward
Hi Edward,
Mind help me look at the pic above to see if correct?
Entry candle is at the red dotted line.
Kit
Hi Kit,
according to the screenshot the first breakout (above 2) & a possible entry opportunity was 7 candles earlier.
In your case with the entry at the red dotted line, it looked like a strategy, where you'd enter on the pullback towards the earlier breakout level. (Also a possible way to trade it).
Best regards,
Edward
Hi Edward,
WIth regards to previous post, I thought we need to wait for the candle to close above Point 2?
And enter on the next candle?
KIT
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