Forex trading strategy #9 (Trend line tunnel)
Submitted by Edward Revy on February 28, 2007 - 15:25.
Creating a support/resistance tunnel on the price congestion and trading on the break of this tunnel is a milestone of Forex trading discoveries.
This trading system/approach needs no indicators and can be applied to any currency and traded in any time frame where coiling in a tight range is spotted.
Entry rules: Find consolidation on the chart and draw two horizontal trend lines – support and resistance. Once the price breaks trough one of the trend lines and a current price bar closes outside the tunnel – buy/sell in the direction of the breakout.
Read entire post >>>
Thank you Albert,
Nice work!
These are great guidelines to follow.
Expanding the topic of Inside bar, let me add further guidelines:
Among variety of Forex bar patterns, "Inside bar" and "Engulfing bar" patterns deserve a good look.
Inside bar is a bar that has its high, low and close values fitting withing the previous price bar.
This pattern can be seen and traded across all time frames, however, hourly charts, 4 hour, daily and weekly are preferred.
Trading the Inside bar pattern:
The presence of inside bar pattern tells traders about a relative price agreement between buyers and sellers. This is also the time when new trading orders are stacking up ready to be released.
The smaller the inside bar candle, the more explosive force it accumulates.
Traders should look for the break out of the inside bar price range to either side and trade in the direction of that breakout. Pending orders are often used to capture price explosion.
Engulfing bar is a type of bar that fully covers/engulfs its preceding bar.
Engulfing bar pattern is also seen across all time frames.
Although there is no strong preference towards any of the time frames in this case, the higher go you, the more reliable the pattern becomes.
Engulfing bar will often be seen after a ranging/pausing time period. Its presence suggests an attempt to start a new trend and shows the dominance of either buyers or sellers - the initiators of the engulfing bar.
Trading the Engulfing bar pattern:
Wait for the engulfing candle to close, at which point look take a trade in the direction of the engulfing bar, but try to catch the move on its retracement whenever possible.
Best regards,
Edward
The Problem is: Not Veryday when Asian Session is consolidation, generally if have a big news or sometimes without big news, the price will fly up/down very quickly, so how you can determines this day will consolidation or trending, besides we look the previous day have a big news or not. Thanks.
Regards;
Manus168
very good
Post new comment