Forex strategy, based on the internal bar allows you to be ready to move in any direction in the market.
I can say that with this technology trade, you have absolutely no need to worry about in what direction will move the market price, which will give you the opportunity to calmly and confidently to trade for this technique.
You will need the following indicators Forex:
1. SHI — this forex indicator helps to find a trend in the market. With this indicator forex, you can open the deal only in the direction of the trend. Once a point above the bar closes, we will only enter into transactions to sell, and if the opposite — that on a purchase. Recommend leaving the default display setting, you should not change anything, is unique — you can change the color. Sometimes, this indicator trading signals forex trading may not be true and just to repeat, so to confirm the data signals must use the following indicator forex.
2. AO — Awesome Oscillator indicator forex (Bill Williams), which is present in every terminal MT4 default — you need to use this forex indicator to confirm the trend. Before you open the deal to sell — make sure that the indicator forex SHI confirms this bargain, and the indicator AO closed red bar. For the deal to purchase — an indicator of JSC should close in green. While the deal is concluded — an indicator AO tends to change its color, but it’s not so scary that time until the first indicator forex SHI shows us the proper direction of the transaction.
If you have received confirmation from these two indicators, forex, we can safely open the bargain in the direction of the current trend.
Trade is conducted on a daily interval (D1).
Take-profit in the forex strategy does not attempt — you must remain in the transaction until such time until the feedback signal. Inverse signal is the inverse point indicator SHI, which appears when you close the bar, pointing to a possible reversal in the market. Proceeding from this — to close the bargain on the upper or lower boundary of the bar, depending on the direction of the current trend.
So I recommend to use the standard trailing stop at a distance of 35-50 points. (You may also use and so does the trailing stop on a trip that will also help set pending orders and accompany them).
Must also remember that you should not directly open a trade deal in the opposite direction immediately after the close of the current. Must await the moment when the two indicator forex will not indicate the entrance to the market. Even after you have closed a deal to wait for the trading signals only in the direction of motion of a trend.
So what exactly is the «inner bar»?
Internal bar — a candle, in which the highest and lowest points are located within the previous candle and do not act beyond its borders. The main idea is that once the market has been formed inside a bar (the range of consolidation), it will sooner or later will go above or below this candle. Our task to try to catch the trend with minimum risk.
This strategy works with any forex currency pair, but remember that it is much more volatile couples need to trade more stop-loss.
Entering the market for forex strategy based on domestic bar:
Wait until such time as fully formed inner bar and vystavte pending orders to buy or to sell (it all depends on the direction of the trend, which we define the indicator SHI) at 1 point value of the spread.
If the chart has formed another internal bar after the last, then you need to change the pending orders for the new internal boundaries of the bar, or expose the two pending orders, on the border of the new and preceding the inner bar. If the trend in the market has changed and pending orders did not work, you should delete them.
There are several options for the installation of safety of a fixed stop-loss:
1. 100 pips from entry into the market
2. Set stop-loss on the opposite side of the inside bar (the variants would be more correct)
If the deal turned out to be unprofitable, then take a look if you have not missed much later inside a bar, and if you missed — check warrants for his boundary. Also, it should always be prepared for a turn in the market and after the confirmation of this fact of forex indicators, open the transaction in the opposite direction.
- Download forex indicator SHI_SilverTrendSig.mq4
