Today we will look at a strategy that was previously kept secret and did not even reveal its main points on this site. It has several names, but it’s all the same Forex & Crypto Trading Strategy: M2, Model 2, 40-60 strategy, «Reversal» strategy, and according to it we conducted «training with a guarantee of earnings». There were many names, but we settled on M2, so we will call it that.
In fact, it is very simple:
Classic (original version) — with longer goals (Author — Alexey Loboda).
- Currency pairs — any, including: metals, cryptocurrencies.
- Indicator — any oscillator for determining divergence, better than MACD (12,26,9). Or, if you wish, you can not use the indicator at all (when you gain experience).
- Time interval — H1.
Conditions for concluding a deal for the SELL strategy M2
1) The presence of an uptrend at least 2 times the pattern!
2) 2 peaks are formed, and on different days they are increasing.
3) We build a channel using 3 points.
4) The width of the pattern (in the channel) is wider than the trend itself!
5) We are waiting for the closing of the H1 candle below the channel (breakdown down).
6) We conclude a deal to sell, after a confident breakdown down.
7) It is also possible to enter on a retest + rebound from the bottom line of the channel.
8) If there is a MACD divergence, great (this is an additional signal).
Conditions for BUY transactions with TS M2
1) The presence of a downtrend at least 2 times the pattern!
2) 2 lows are formed, moreover, on 2 different days and they are the 2nd below the first.
3) We build a channel using 3 points.
4) The width of the pattern (in the channel) must be wider than the downtrend itself!
5) We are waiting for the closing of the H1 candlestick above the channel (upward breakdown).
6) We conclude a deal to buy, after a confident breakdown upwards.
7) It is also possible to enter a buy on retest + rebound from the upper line of the channel.
8) If there is a MACD indicator divergence signal, it is good (this is an additional signal).
Profit, stop loss, money management
9) We stretch the Fibonacci channel and at the level of 0.618 we translate into used.
10) At the same level — 0.618, we fix 20-40% of the transaction (the percentage depends on you, the ideality of the model and your accepted risks).
11) At the Fibo level — 1.0, we fix another 20-40% of the transaction.
12) We set profit at an important clearly visible price level or at an important Fibonacci level in an upward movement: more often — 61.8%, but sometimes it can be 38.2% or 50%.
13) Stop loss — there are 4 options:
a) Above the line drawn from the highs in the channel.
b) Above the 76.4% Fibonacci stretch from the high of the top 2 to the low, after the channel is broken.
c) Above the line drawn from the lows in the channel (if an intermediate low has appeared).
d) A combination of options a-b-c is possible.
14) Money management — 2-3% risk per trade. If you only study, you can even 1%.
There is also a 2nd option — more aggressive, it is not recommended for everyone. But as an option — it is possible, it is discussed in the video course.
Add-ons
1) Avoid narrow patterns in relation to the trend.
2) The presence of a trend is a must.
3) Be wary of horizontal and trending models (not curved).
4) Do not be greedy, close in parts.
5) On time and be sure to transfer the deal to a used one.
6) If the price does not go in your direction for a long time, it is better to close the deal.
7) If the price returned to the channel, it is better to consider the option of closing the transaction to zero or near zero.
8) Wait for confirmation of signals on H4-D1 if possible.
9) Do not trade at the time of the news and at the close of the market.
10) Close trades before the weekend: spread widening, big stop losses, gaps.
11) Watch out for reverse patterns on the same interval and older ones.
Video version of the M2 forex strategy:
There are many reports, here are some of them:
That’s the whole strategy in a summary and it is the classic version!
And below I attach several drawings of these models (these are not videos, but screensavers to the video of the course video itself, but here they are presented as examples — photos):
That’s the whole strategy, if you have questions — ask!
![M2 Pattern / Model 2 [Forex & Crypto Trading Strategy] + 6 Real Reports](https://strategy4forex.com/wp-content/cache/thumb/b1/5227338083390b1_320x200.png)