Breakdown of range
Strategy Forex Range Break
The strategy Forex Range Break comes to the search market, which is located in the flat, narrow ranges of price fluctuations and placing pending orders on both sides (Buy Stop and Sell Stop). In this case the market will decide when and what kind of a pending order to activate it
Stop-loss should be placed on the opposite side of the consolidation channel for each order. The best indicator to determine which we market and pending orders placement points are Bollinger Bands (Bollinger Bands). If a particular channel on the chart consolidation has at least a small slope, Bollinger bands diverge, if the market upokaivaetsya, strip Bollinzhdera converge. The ideal in this case for the deal would be a situation where parallel stripes (see Fig. 1).
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Figure 1. Work forex indicator Bollinger Bands to determine the entry points.
Although determine the ideal parallel horizontal channels is not always possible, but if you scroll down the price chart of this indicator in the story - you can easily identify all the areas that are suitable for entry into the market.
very carefully and slowly look at a few currency pairs, it can spend on a day or more if needed (I'm personally so earned his first money in forex, when spent some days trying to find patterns in the market - and I found them eventually got my first forex strategy "Flag + ABC " and as a result - my first profitable trades ...) and you'll easily identify such price-to-face channels. However, remember that these quiet areas happen, after all, not very often - even in a flat spot forex market a little stormy. In this case, just go to an older neighbor time range - as period is not the main chart, namely, parallel bars!
Figure 2. The strategy to enter the market of flat.
In addition, this method of entry and a small amount of an account, you need to move the stop loss at the opening price a bargain at once - as soon as you allow it to market (for this very good fit < a title = "Learn more about Counsellor" href = "http://www.plati.ru/asp/pay.asp?id_d=400264" target = "_blank"> trailing stop on a point ), as sometimes there are false breakouts fletovogo price channel, as you can see in Fig. 3.
Figure 3. The market allows us to deliver a deal to breakeven - this should take. Re-entry into the market in the opposite direction can be run from the 2nd of a pending order, but it can and move to the next fractal on the right. About this opportunity to re-formed flat signal, which immediately began after the breakdown - it is marked on the outline in the figure.
take profit better not to, but treylingovat position and if possible, close the position parts.