Forex Strategy «Parallel channels + Fibonacci» — Author multicurrency strategy with benchmarks and examples
Its author — Toha recommends:
1) pay particular attention to the following currency pairs to trade: Eur / Usd and Nzd / Usd.
2) The time period can also be anything, but still not recommended below H1.
3) The strategy is without indicators, but approved of the indicator MACD (default settings), to search for additional signals for entry and exit in the form of divergence MACD.
4) The basic signal to enter the market — the fourth approach is the price to one of the lines-drawn canal + presence at this point (or about) the important Fibonacci level: 38.2%, 50.0% or 61.8%.
Figure 1
Figure 2 (1 st increased)
Description of an example of the transaction:
Regarded pair — Nzd / Usd, dotted channel built by two minima (1 st, 5 th June) and one maximum (June 7). The deal was open from 13th to 14th June.
The signals for the transaction:
1. price went up to the lower channel line
2. Fibonacci level of 61.8% (from the previous motion to the north) and the 38.2% Fibonacci level (on June 8).
Buy order was established between the considered by 2 Fibonacci levels.
Stop-loss set at the level of 61.8% (from 8 June).
Profit has not been exposed, but the profit levels were chosen: the upper channel line (the opposite), or 138.2% Fibonacci extension and 161.8% (of the maximum on the 13th before the approach to the channel) in the end the deal was closed on the second version of profit + averaged line parallel channel forex built on schedule.
5) How to exit from the market / closing.
Closing of the transaction carried out by the Fibonacci levels, or when the price of the other line of the channel, sometimes on the average line of the channel.
6) The rules of money management and money management forex recommend watching the video on the subject on this site: MM forex rules.
From myself I want to add that to trade should be so that the stop-loss though, would be twice smaller than the expected take-profit!
Examples of transactions for forex strategy «parallel channels + Fibonacci levels»:
1. The pair Eur / usd.
It was built on a minimum uplink (June 1) and two maxima (5th and 7th of June). As well as Fibonacci levels from the minimum (June 1) to high (7 June). Trade was at fourth contact with the channel price + the level of 50.0% Fibonacci. Open trade was to take-profit, after the market opened on Monday with a gap, in contact rates to the opposite line built upstream.
2. Currency pair Nzd / usd.
The market has been quite an interesting situation, three times in a row came in the deal.
The first deal: the canal was built by the 2nd highs (both on May 29) and one minimum (May 31). Built two levels of Fibonacci «south.» The first level — the maximum (29 May) and minimum (on May 31). The second level of the Fibo — maximum (May 30) and minimum (on May 31). The deal was concluded in the fourth approach to the construction of channels + 50.0% + 61.8% Fib. The transaction took place in parts: the profit at 138.2% Fibonacci extension, the second part on bezubytku (ie zero).
The second transaction: We used the previous channel built and expanded Fibonacci forex for a minimum (June 1), the maximum (June 1) «to the north.» The deal was struck at Canal + retest the level of 61.8%. The deal was closed in the same part of the view in the picture above.
The third deal: build a channel for two minima (1 and 5 June) and one maximum prices (June 7). Two Fibo stretched «to the north», one mininum (June 1) and maximum (June 7), the second fib: minimum (June 5), maximum (June 7). The deal was concluded in the same way — when prices approach the fourth line of the channel built on the example of forex levels + 38.2% + 50.0% Fibonacci. Closed open order in two parts (represented in the above example).
Test forex strategy.
Testing forex strategy and statistics are not kept, because trades are not the signals, and more pronounced! I can only say that trading on it, stop loss no I did not have, 4 deals were closed bezubytku and all others in profits!
But will come in handy for more forex signals, emerging market, and any: Diverging MACD, trend lines, channels in the presence of senior TF, etc … It is recommended to use templates MT4 forex forecasts this site!
Template MetaTrader 4 is not attached, because in each case, the construction must be carried out independently.
Special conditions:
This forex strategy is certainly not break even (!) (Though I have them, and it was not), but if you approach the maximum trade responsibly, will find more opportunities for forex signals, I assure you, you will all still make a profit consistently !
Beginners in the forex market do not recommend just «go on the warpath», and trade on it. Need a little time on the technical analysis of the chosen currency pair! Try to look at where the market tends to move, that is directed to the trend! And of course advise same view on history, where and how it works!…
