This Forex strategy «Trading on the levels of» is based on Forex of Perforation and rebound from the critical levels.
The essence of this strategy Forex, with trade levels, concluded as follows:
If the price of every cannon of a point, the more likely that it cannon from her again, and if probet this point, the acceleration will be very good, so that the trader could earn in the direction of Perforation of the pre-opening position.
- I recommend to choose a brokerage trade Forex with the best trading platform Metatrader 4
Consider an example in the picture:
The figure shows a significant level of USDJPY at the 20 th of March, the arrows indicate the direction of movement of prices on the graph, the lines — the level of stop-loss, in which the trading position of Perforation automatically turns in the opposite direction. Then when after a 15-20 points (depending on volotilnosti currency pair), an open position or move to a zero or using trailling-stop.
As evidence of Perforation or rebound from the critical levels can be used:
- Rebound — if the price of the schedule was a long way to the top without a corrective movement, on the other trends.
- Of Perforation — a price often «ends» at an important level, gradually, while bringing Low rebound.
