Forex Strategy Rooks
basis Forex Strategy Rooks , are graphical representations on the chart, and for the construction of "Rooks" using a common indicator MT4 - ZigZag ("ZigZag") as well as standard tools - Pitchfork and Fibonacci (this strategy is a multi-currency and FOREX works on any time frames!)
- recommend selecting: forex broker with Metatrader 4 !
pattern "Blue Rook":
building example, you can see in Figure 1.
find a downward spiral and it is denoted as AB - construct the Fibonacci levels on the segment AB. At the level of the Fibonacci 61.8% - the price level is 0.9793 rebound prices - get the segment BC and after that the price falls to a "rebound" - 0.9716 - get the segment CD.
's turned out this figure, which can be called "rook flying down".
And so we define the point:
- A - Tail
- B - foot rook
- C - ear rook or top, as you like
- D - rook's beak.
After the formation of "rook", construct Andrews pitchfork from the tail, claws and "crown" !
So we get 1st signal for the deal to buy - the intersection of Andrews' Pitchfork top price.
If we draw a straight line through the green top of the AU, then along with Andrews' Pitchfork, we sector to enter the market . Moreover, it should be noted that the "rook" as it pecks svom feet - this is nothing but the divergence - and this is yet another signal to the deal on the purchase.
Stop-Loss , it should be set to the lowest point of "rook" - in this case - the point below D.
take profit or not intended, and the position of trailing. Or at least put the above point C or A. The same can partially close a trading position in achieving these points .
pattern "Red Rook":
"Red Rook" is constructed like blue, but in this case "goes up". And the most basic - no "blue rook" is not red, and vice versa. This is important because if we properly razrisuem all the rooks, then we will approximate the point of return (see examples in the figures at the end of forex strategy).
appeared segment DE - building a Fibonacci - get rolled EF. He did not reach some level of 61.8% and consequently (by Elliott wave theory) is much more likely the more powerful upward movement. A minimum of "rebound" to the level of 0.9784, the maximum level at 1.618% (on the schedule is listed as point B). Then we construct Andrews pitchfork, holding a green line EF - in the end we get the sector to enter the market for sale. And when the "red rook" falls to 0.9784 - there was a breakdown down.
Stop-Loss , it should be set at the very highest point of "rook" - in this case - point below W .
take profit or not intended, and the position of trailing. Or set as a minimum below the F or D. You can partially close a trading position in achieving these points.
And so on - begins to form blue rook ...
Another important addition , I recommend to use a system of three screens with three different t / f on that emerges as the" Rooks "and is analyzing the appearance of small and large" Rooks "gives a more complete picture of what is happening in the market. < / p>
As well as in the theory of Elliott wave "small rooks" are going to so-called " flocks of rooks ", ie You can already choosing 2 red and one blue unite in larger rook - try to ...
If it turns, for example, that point C above the A (see Figure 1), then enter the transaction should be on BuyStop - a and for the transaction to sell - at SellStop -y, respectively.
Examples of building Rooks:
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