FOREX Full attenuationp class = "head"> Forex Strategy Full attenuation
Forex Strategy Full attenuation is a multi-currency and allows you to catch the peaks and troughs of the market, which in turn provide the potential to earn, the recommended time frame - H1
Identify intraday reversals will be using:
1) a combination of 3 sets of indicator Bollinger bands - Bollinger Bands (20) with a deviation 1SD, 2SD, 3SD.
2) and oscillator RSI (14) with levels 30 and 70.
Bargain we will be in the moment when the RSI reaches overbought (above 70) or oversold (below 30) on the market. After the appearance of this signal, we will look for an opportunity to make a deal at the turn of the market.
With three sets of Bollinger bands, we will determine the point of exhaustion. The main reason for which we use these three sets of indicator Bollinger bands is that they help us identify the end of the movement, together with the degree of possible rollback in the market.
If the price reached the third band bollinzhdera, this is a signal that it is located in the extreme zone. As soon as we depart from the band 3rd standard deviation Bollinger band between 1st and 2nd Bollinger band indicator, then we know that the currency exchange at the moment has reached its extreme point and enters the phase reversal.
The main condition of the deal is the presence of at least a second candle, closed down between 2nd and 1st standard deviation Bollinger.
Conclude a deal to buy if:
1. RSI (Relative Strength Index) is below its level 30.
2. Price reached the third Bollinger (3SD)
3. After this candle on H1 rose from the area 3SD-2SD Bollinger band at 2SD-1SD.
4. It was only after the 1st candle closes within range of the Bollinger 2SD-1SD, 2 equal conclude the transaction to purchase at market price.
5. Place a stop-loss at 10 points below the last local minimum.
6. Set take profit at a distance equal to the stop-loss for the 1st transaction.
7. As soon as the first profit target is reached, move the stop-loss of the 2nd transaction to the breakeven point.
7. The second profit target - the 2nd level of the upper Bollinger band.
Consider an example for the pair EURUSD:
1. Price reached third Bollinger, RSI and the oscillator has fallen below its level 30
2. Hourly candle entered into the 2SD-1SD Bollinger, opening the deal to purchase at a price of 1.1884
3. Stop-loss set at 1.1862 - 22 points, respectively, and the 1st profit is 22 points.
4. Close 1st deal to profit of 1.1906, move the stop loss to breakeven
5. Close 2nd trading position at 1.1939 (profit: + 55 pips)
For transactions on sale - check the rules!