Forex Strategy «Vegas-Wave» was developed for the time interval (H1) and for the signals for the opening of trading positions taken: Fundamentals Elliott wave theory and the signals from the Exponential Moving Average — EMA 144 or EMA 169, which form a channel on the chart.
Exponential Moving Average EMA 144 has a very important feature — a sufficiently strong and long-term trend movement, it is just excellent support for the price. And as if the price crosses the exponential moving average EMA 144, this intersection indicates that the trend in the market going to change its direction of motion is reversed previous.
If the skillful use of 2, these properties of EMA 144, and thus use more and some additional filters on the trading system — it is quite possible to use the resulting system for a profitable and logical trading system.
Signals to enter the market will serve as the intersection of the price channel, formed by 2 moving averages: EMA 144 or EMA 169. Filter for the conclusion of the bargain will be the formation of a fractal in the market, on the breakdown of the fractal we will put a pending order.
Signals for the fixation of the profits will be taken from the Elliott wave theory, as well as on the levels and Fibonacci extension, measured from the 1 st wave of Elliott on the current trend in the market.
And despite the fact that the forex market can not be applied to any one pattern, so when trading forex strategy «Vegas-Wave losing trades will still be, as entrance into the market will take place not only at the beginning of a trend movement. But the trade statistics of the strategy says that in any case profitable trades when trading gets about 3 times more than the closed with a loss. And this is a big plus for this forex strategy!
Principle trading strategy forex Vegas-Wave:
Moving averages EMA 144 or EMA 169 form a channel on the chart. If the price is above the channel, this zone is called a «zone of purchase», if the price is below the channel formed, then this zone is called a «zone of sale«.
Trading signals for a deal to buy:
We look at the selected price chart — if the candle on the hourly interval breaks the channel from the 2-EMA, and then closes above the channel or directly into the channel (between 2 medium), then we need to wait until a fractal graph. This fractal is a filter for a pending order to buy BuyStop (as a variant-1 of the 5 candles this fractal should close either above it or in it).
When you change the trend, the signal can be a regular fractal, which struck one of the 2-secondary educated channel without taking into account the closure of the candles.
That is, all you need to do — is to wait for the formation of the momentum-rollback for a deal to purchase and install a pending order BuyStop on the breakdown of fractal ulichyvat + filter + value spread. Stop-loss order should be set on the opposite side of the channel formed in the first wave of extreme value (local minimum), or the previous fractal, if the entrance to the market you are not at the beginning of a trend reversal in the market.
Trading signals for a deal to sell:
Analyze the selected time schedule — if the candle on the hourly interval punched channel moving average and closed below the channel, or between 2 medium, then you should wait for education on the graph of a fractal. This fractal will serve as an additional filter for a pending order to sell (as a possible option is one of the 5 candles this fractal should close or below it or in it).
When you change the trend of the signal can be a fractal, which struck one of the moving average channel, not taking into account the closure of the candles.
Ie should wait until the formation of the momentum-rollback for a transaction to sell and install a pending order SellStop for a breakthrough this fractal + filter. Safety stop-loss order should be set on the opposite side of the channel formed by the moving averages for the extreme first price wave (local maximum), or the last fractal, if you do not enter the market at the beginning of a trend reversal in the market.
Trading Rules op forex strategy «Vegas-Wave:
1. Above the channel of moving averages is the «buy zone» below the same channel is «a zone of sales», the pending order is placed to break through the 1 st appeared fractal market higher or lower than the channel average. Safety stop-loss placed above or below the beginning of the first wave of Elliot. If market entry is not in the 1-th wave, the stop-loss order is placed for the previous fractal, which is located on the opposite side of the channel medium.
2. The size of trading positions should be divided into 2 equal parts.
3.Pravila to close the profit on the transaction:
a) 1 st part of the transaction should commit or the 262% Fibonacci extension of the value of a second wave, or at the end of the third wave Elliott.
b) Part 2 of the transaction should commit to expanding the Fibonacci 362% -424% of the 1-th wave, either
completion of the fifth wave Elliott.
c) If the trend in the third wave powerful enough, the profit on 1-m 50% of the transaction fix for the suspension
price movement, it usually happens in the 300-338% -362% Fibonacci extension of the value of the 1 st wave.
d) When trading on the wave structure, as well to consider more junior levels of the wave, or in other words treated in the same wavelength intervals for Elliott M15-M30, for more accurate determination of the closure of profit.
e) If you enter into a bargain in the 5 th wave of Elliot, the 1-st part of the profit is fixed at 362% Fibonacci, and the same should be specified region close to the profit of the younger wave structure.
e) After fixing the first 50% profit stop-loss level should be set to zero «in the second part of the open lots».
4. Just stop loss to breakeven swapped for the resulting level of rollback, after a broken extremum of the price movement.
5. Possible variant of fixing part 2 of the open lot (if this 1-st part of it has been fixed at the level of Fibonacci 262% or 362% from the first wave Elliott) — the use of a trailing stop on the previous fractals, the opposite movement.
6. As it is necessary to take into account temporal filter for opening trades on currency pairs EURUSD and GBPUSD. Ie should be put warrants in the gap with 8:00 on the terminal time, and up to 18:00-19:00 hours (ie, approximately 7:00 am until 17:00-18:00 on GMT).
7. After 17-18:00 GMT on for currency pairs EURUSD and GBPUSD warrant can be installed, but should take into account the situation on the foreign exchange market. Before 7:00 am GMT on pending orders should not be installed at all!
8. If the trend in the market is over, we note the time filter to enter the market (such as the trend continued at least one week), it will be at least 2 trading days after the end of a trend — that is, Orders are not exposed.
9. Pending orders for currency pairs of cross-rates: GBPJPY, EURGBP, GBPCHF can be installed entirely at any time of day trading.
10. The same should ignore trading signals for the purchase or sale, if it is formed after a sufficiently large price move in the direction of trade signal.
See examples of transactions on the forex strategy «Vegas-Wave:
To BUY: in this case was originally a stop-loss set at 1.4050 level, minus the filter is 5 points.
Entering the market is produced at the beginning of the third wave Elliott.