Trend Lines [Simple Forex & Crypto Strategy]

Simple Forex & Crypto Strategy Trend Lines — yet another multi-currency trading strategy based on graphical representations, in which the indicator forex, reflecting the market situation is the price itself, this vehicle looks like something on the strategy of «3 Touch» and for trade, we need only a trend line and a few rules of the strategies that will enable us to make a profit!

And so we will sell at 2 time-frames — H1 and M5 (or rather the beginning to find conditions on the H1, and then move on to trade the M5).

Trading conditions for opening deals

1) The timeframe H1 define two successive points through which hold the trend line and denote them as «0» and «1 «, an example of looking at the picture:

2) Then, after the definition of 0 and 1, go to the interval M5.

Further construction will be analyzed on the image below (to enlarge — click on it — will open in new window):

3) After the formation of point 1, we expect the rebound from the trend line and the formation of the maximum, which will henceforth denote the point «2».

4) After the price began to unfold again to the trend line 0-1, we expect the formation of point «3» — the first point at which we will conclude a deal for the purchase of deferred warrant BuyLimit, you want to install approximately 5-8 points higher trend line (for transactions for the purchase).

5) Stop-loss is placed under the point «1».

6) Take-profit set at point «2». If desired, you can close only part of the deal, when the level of point 2 and the balance transferred to the position of a trailing stop.

But it also should take into account one very important condition in this forex strategy:

The deal for the purchase and sale is only if you intend to distance from point 1 to point 3 (1-3) is 2-3 times less than the distance from point 2 to point 3! Ie alleged stop-loss is 2-3 times less than anticipated take-profit!

If this condition is not met — the deal is not! For examples, see below:

7) After the breakout point «2»- the price usually moves up to its maximum, which we denote the point of «4», and then falls again to the trend line, an example of looking at the picture (for larger — click on it — will open in new window):

8. In the approach to price trend line, again, we check the ratio of the alleged stop-loss and take-profit. If the distance is less than 3.5 to 3.2 times than the range 4-5 — set aside an order to buy — Buy Limit.

9) Stop-loss is placed below the point of «3».

10) profit target set at the point of «4».

If desired, a scheme for deferred purchase orders and can continue on, but this is at your discretion and subject to the necessary conditions at a ratio of stop-loss — profit target.

For transactions on sale — check the conditions!