Forex Strategy «Bouncing Line»

Forex Strategy «Bouncing Line» — is a graphic-based trading system on the lines of support \ resistance and so-called «medians» — trend lines crossing the price charts, trading Any currency pair, preferably the average volatility (without the long tails of candles) used range: H1, H4, for more precise construction of trend lines, using the interval M15. Forex Strategy was sent Ovsyannikov Anton.

Considered forex strategy a little bit similar to the strategy forex Trendlines and Forex Strategy «3 Touch», but nevertheless, has an individual set of rules for the conclusion of trade deals, so I decided to publish it on your site and would like to thank all the authors of the new strategies Forex, which I sent more frequently lately!

Next, lay out a strategy forex «Bouncing line trading» in the version that sent me Ovsyannikov Anton, sometimes with small inserts as explanations for beginners (so there were fewer questions):

In the forex strategy «Bouncing line trading» is conducted from lines drawn on two or more high or low:

Forex Strategy "Bouncing Line"

Or from the media to hold at points of corrective movements and / or former high and low, even if these lines intersect the graph price bars:

Forex Sistem "Bouncing Line"

Lines are built on close prices (!), But not on the tails of candles, and if the price is on one side of the line drawn by, it is recommended to correct the point of contact line with the price of a smaller time period. To schedule H1, recommend to correct the trend lines in the range M15 or at least on the M30 — it all depends on the experience of forex trader and the ability to correctly draws trendlines.

The strategy forex «Bouncing line» is this: the price close to the strong trend lines trying to be adjusted, maybe it’s because they have strong trendline large number of forex traders record their earnings and open trading positions in the opposite direction, causing price movement in the opposite direction (going on the rebound (rebound) of the trend line), albeit sometimes not great but enough for a living (profit) when used properly, forex strategy.

Deal to sell is from a line located above the price chart.

You can manually enter a transaction directly in touch line price, or with pending limit orders (Sell Limit), if the trend line has a small angle (with a large tilt angle — almost vertical lines, very high probability of rapid price reversal without stopping at the trend line and rebound from it).

Take profit and stop loss are selected for the chosen currency pair on their own, simply by measuring the minimum rebound from a trend line and the long tails were released a line over a long period of time.

For the currency pair EURUSD (H1) is about Take-Profit (TP) = 10 — 12 points

Stop-loss (SL) = 15 — 20 points, just for the currency pair EURUSD (H1).

For transactions on the purchase — check the conditions!

Profitability of forex strategy «Bouncing line depends on the quality of the drawn trend lines. Lines operate davolno well even during the news, although better in time-critical forex news (like NFP), nevertheless, to refrain from trading, while the minimum rebound from the critical line (10-15 points) is almost always, even if the price gathered to break the line! The only drawback at the moment the news forex — slippage of orders, such as stop loss and profit target, ie they are not guaranteed.

Consider the example of forex strategy «Bouncing line» № 1:

Forex Strategy "Bouncing Line"

Example deals

In the example, the price is not deployed from the line of resistance, but a rebound in 15 points can be seen even in the time interval of H1, is often the case that rebound from the line is very fast and it can be seen only in the range M15 or M5, and on the hourly chart, we see only the closed Candle without any setbacks.

Consider the example of forex strategy «Bouncing line»№ 2:

Strategy Forex "Bouncing Line"

The deal was concluded for the purchase of Midian line, located below the price chart.

All-clear from the trend line!

In the second example, bounce rates of nearly 30 points, and the tail struck a candle line by only 8 points, resulting in a safety stop-loss order has not been activated, and the deal was closed with a profit. Immediately after a small selection in the figure rebound rates, followed by a second touch of the trend line (retestirovanie trend line), during which trading is not suitable (!), Because too quickly the price was again tested the line and appeared more likely to break the resistance line.

It’s also worth to note that it is impossible to trade on the forex strategy, if two or more lines of how-to «clamp the price,» an example of looking at the picture (after the construction of important trendlines, price comes into the area between the lines and how-to range) :

One should not conclude a deal.

In the considered forex strategy, with small goals for profit (10/12/1915) items priblnost depends on the quality of construction and the median trend line, so I advise to practice before moving on to trading on a real account, perhaps not even one week in different currency pairs, under different market conditions — in flat and while the trend movement.

REMEMBER: The profitability of forex strategy depends only on the experience of the trader!

P.S. agree, my forex strategy is similar to something on a strategy of «trend line». But in my strategy forex, transactions are conducted in almost every case, at the touch line, and the «trend lines» only after release from them, which is not always. The publication of my forex strategy, I just wanted to thank all the other authors of the strategy, which I learned a lot and decided to share his vision of the forex market. In defense of his strategy to say that the transactions in the interval H1 usually pass very quickly and this reduces the psychological burden for beginners.

  • For this strategy, provided that no forex forex indicators for Metatrader 4 (only its own building with the help of trend lines) so that patterns and indicators for MT4 I do not spread.
  • So I recommend to pay special attention to discipline in the forex market (and Money Management included)!

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