Forex Strategy Lightning
Forex Strategy Lightning has been sent trader Newspapers and Vladimir and he claims "strategy is absolutely one hundred percent" < / strong>, and since I personally mostly stick to this style of trading (ie, trade patterns and graphical models, forex), I decided to publish it and, for a suitable trade the currency pair EURUSD, the time-frame: M15, H1, H4 ( trade opportunities and to M30 and M5).
And so, on the EURUSD chart indicator set, which draws fractals by Bill Williams - Fractals
So do we need a tool MT4 - Channels Fibonacci (Fibo Channel) with the established levels: 0.15, -0.15, -0.85, -1.15 ( that will tell us in 15 zone-drawn interest us Fibonacci Channel). How do I add levels:
a) insert a channel on the Fibonacci graph randomly
b) bring up the properties
c) the Fibonacci - delete all the levels and add their: 0.15, -0.15, -0.85, -1.15 (example see figure):
As a result, you will have channel with extra layers on both sides of the channel!
now proceed to consider the strategy lightning
It's no secret that the waves on forex ever go up or down. The strategy "Lightning" is to make a profit on the development of our third wave - see Image:
Trades Strategy "Lightning" is after the 4 steps:
1) Wait until the graph is formed dvuhfraktalny trend , the distance between points is equal to a few dozen items - such as 20-50-100 (less is not desirable, because and then the desired profit is very small)
Dvuhfraktalny trend - a trend at the beginning and end of which there are fractals, and not in the middle of them:
2) After the chart formed two fractal, we build the channel Fibonacci (with levels) in such a way that two points of reference in line were just on these fractals:
3) Now we wait, while the chart does not appear third fractal , and construct a parallel line through the channel Fibonacci sequence (ie, we move our parallel line). Do not forget that for the formation of a fractal must be at least 5 candles, the average of which is marked with an arrow and:
4) After the canal was built, we are horizontal level in 2-D fractal - the horizontal red line (at the end of the 1st wave) and the vertical line through the intersection and the 15% level gorizonzontalnogo level :
for pending orders to buy - Buy Stop (picture above left) or a pending order for sale - Sell Stop (picture above right) need to wait until the candle opens on the right of the vertical line and set aside the order slightly above the horizontal level (1-3 points higher or lower depending on the direction of trade).
Stop-Loss is placed below third fractal (picture above left) - for the transactions for the purchase or above third fractal (image above right) - for bargains on sale !
take profit is 80% of the distance from 1st to 3rd fractal.
example of the transaction and placing orders on the strategy of "Lightning", see below:
Now let's consider the options of various deviations from the rules of strategy, "lightning", because that strategy will not work with "absolute" guarantee of a profit (or to you, to trade under these conditions or not):
1. First of all, you may have difficulties in identifying suitable for "lightning" dvuhfraktalnogo trend, or in other words, the definition of the 1st wave. Despite the fact that there is nothing complicated about opredelinii waves there, but the 1st wave is not considered suitable for trading, if contains the other waves (extra), to recognize them, you can use indicator EMA (2) - exponential moving average with period 2 , it must apply to the rising wave of Low and waves directed downward - to High. EMA (2) throughout the 1 st wave should not be directed in the opposite direction, or be horizontal, otherwise dvuhfraktalny trend will be considered not suitable for "lightning," an example look at the picture:
2. The second wave is not suitable, if the fractal candle ends in the direction of the second wave, and then formed its fractal candles are completed, the body which are located either at the level of the fractal Dodge candles or "plus sign»:
or farther in the direction of the wave:
3. The second wave should not end lower for first wave "of lightning up" and above for first-wave "down the lightning":
4. also 2nd wave must always be greater than one fourth the value of the first wave. To check, do the following: install a horizontal line at a point between two anchor points of our channel and the upper part of the wave visually divide in half - this will be a quarter of the wave:
Ideal - when the 2nd wave of fighting off the 50% level of the first wave, ie from the line on the middle point of the channel!
5. Number of candles 1st wave should exceed the number of candles of the 2nd wave, the candles are on the fractal to fractal inclusive, fractal candle end of the first wave and the second wave is in the first and second wave.
6. A pending order should be removed at the beginning of the formation of a candle for the vertical level of the intersection of the horizontal level, conducted at the maximum of the first wave, with the second 15%-level of the channel:
7. You should also delete the pending order if one of the candles, third wave, along with his shadow out and closed the 15% level Fibonacci Channel:
Here, in principle, and all the rules! Of course they are not few, but only at first sight, after analyzing a count of graphs on the history, the wrong model eliminated themselves.
Just by strategy - Rodnikov Vladimir recommends not to deviate from the rules of the forex strategy, if you're not a professional trader.