Forex Strategy «Memory prices»


Multi-Strategy Forex «Memory prices» is intended for trading at intervals from H1 (hours) to D1 (day), although if desired can be traded and smaller intervals from the M15, as the basis of this strategy is taken normally, the levels of support and resistance patterns of «dual bottom» and «double top» do not stop to influence price in the market, even after the fact that they were «punched» (and as the magnetic field continues to attract the price again to these important levels, after the close a large number in transactions traders stop-loss).

Since In this strategy, forex trading is, in fact, against the main trend (in a retreat from the 2 tops or bases), the use of stop-loss just is obligatory!

Bargaining for Sale:

1. We find the chart selected currency pair steady uptrend, which has at least 3 or more consecutive high minimum.

2. We wait until the moment when the upward movement on the selected interval commits retracement price (ie, rolled back the price — the price is adjusted).

3. An important condition is the moment that the rollback price equal to at least 38.2% of the initial upward movement of your choice.

4. Deals were in 2 stages (for example, if you want to risk the transaction of 5% of the depot that is in your case, a lot, that is):

We conclude 1/2 trading position for sale — 0,5 lot (let’s call it a deal № 1), when the price of the graph grows to the maximum of the previous variations, «drawing» with the pattern «double top».

5. Measures the amplitude of our retracement (rollback) in points. In the future, this value will be the size of our stop-loss and half of this value we will create 2-nd order:

Forex Strategy "Memory prices"

Rollback «double peak» is (the size of arrows up — picture above): The maximum initial oscillation (1.2060) — at least roll back prices (1.1776) = 284 points. Area resistance (yellow box): 1.2344 — the final stop-loss, ie value of 284 points, deferred from the point of 1.2060 up! — Ie This zone is intended price reversal.

6. Adds the value of the measured amplitude to the maximum of the previous vibration and place at a given distance, our stop-loss (ie it is equal to the value of our rollback prices!)

7. A profit of 1-th position set at 50% on the value of our rollback.

For example, if the magnitude of the reversal of the ground motion is equal to 200 points, the value of take-profit is equal to 200 x 50% = 100 points.

8. If the price after the opening of the transaction is in the negative, you need to open the 2 nd half of the transaction (call it a transaction № 2) at 50% of the distance between the maximum fluctuations (1 st peak) and stop-loss.

9. Thus the stop-loss for both transactions is placed on the same level!

10. If the price turned and went below the entry price for the transaction N1 - close the profit on the transaction number 2 (or set take-profit 2-th position on the level of the opening of the 1 st order), and move the stop loss to break even and wait until the transaction number one closes on initial take-profit or for «zero».

Now let’s look at an example:

All currency pair chart USDJPY, was formed retracement (rollback) between 8 am and 8 am March 30. The magnitude (amplitude) of the range — 116 points (118.22 — 117.08). Then we add these 116 items to the maximum oscillation 118.22 (1 st peak alleged double peaks), in order to set our stop-loss at 119.36. When the price went up again on April 3 to a level of 118.22, we are opening half of our proposed trading position. But after the price has not unfolded in our direction, but went above and we will open the second half of the transaction costs 118.78.

After opening the second half of the 2-position, the price is not reached our anti-loss and turned on the next trading day at 10 am, we closed the deal № 2 for the price 118.22.

Once the price dropped a little below the opening price of the transaction N1, we moved the position to break even, and at 8 pm, closed, and a second part of the deal on take-profit.

Trading Forex Strategy "Memory prices"

Description of the transaction in Figure 2 for the currency pair USDJPY (H1)

Step 1 — Price tested to form a «double top» — we conclude a deal to sell — 1/2 position at the price of 118.22. Set stop-loss on the value of the last rollback prices.

Step 2: — Sell 2 nd half of our trade position (in the same volume) at the price of 118.78 — just in the middle distance before the stop-loss. Set stop-loss on the position of number 2 for the same price as the stop-loss is the first position.

Step 3 — Closing 1 / 2 positions (transaction number 2) at the transaction number 1 — at the price of 118.22

Step 4 — Close the 2 nd half of the transaction at the price of 117.66 (Profit: +56 pips)

For transactions on the Purchase — the reverse condition!

Stock Strategy "Memory prices"

Description of the transaction in Figure 3 for the currency pair GBPUSD (D1)

Step 1 — The price of the market tested the «double bottom» — to contract for the purchase of 1/2 the desired position on the price of 1.7386. Set stop-loss on the value of last rollback prices.

Step 2 — enter into transactions for the purchase of number 2 for 1.7126 — exactly at the middle of the road before the stop-loss. Set stop-loss on the position of number 2 for the same price as the stop-loss of the first open position.

Step 3 — Closing 1/2 trading position at the conclusion of the transaction number 1 — at the price of 1.7386

Step 4 — Closing the second half of a trading position at 1.7646 price (240 points)

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