FOREX volatility sample
trade volatility breakouts
At the heart of this trading system is based on the ideas presented in the articles of trade volatility breakouts Linda Raschke. What is the essence of the method - "after the market has a rest period, or reducing the range, often follows a trend day.
Day Trend - a day when the market opens on one extreme of its range, and closed at the other extreme. He goes a great distance with very few rebounds. "How do you know when to join the trend movement? L. Raschke proposed model, ID/NR4, which uses a certain set of rules. This is a simple effective input, combined with a sleeping stop. The key to trade on this model - Early Identification of existence of the state ID/NR4.
NR4 is a trading day with the most narrow in the last four days of daily diapazonom.Vnutrenny day has a minimum wage higher than the previous day and a maximum nizhemaksimuma the previous day. Satisfying these two conditions constitutes a day TD/NR4
you see the day, which is essentially a day and time range which is less than the three previous days (ie, the current day is the most small range of the last four) on the day you buy-stop expose and sel-lstop the maximum and minimum price bar IDNr4. vyhodosuschestvlyaete or after the session or the second bar. Only on the day of entry, if triggered stop on the side of buying, selling, enter additional stop at one tick below the bar ID/NR4. This means that if the deal turns out to be a loser, we do not just come out with a loss, and expand and open a short position. (The same applies vice versa, if you first open a position on the short side.). Tighten the stop to capture the accumulated profit.
If the position for two days does not become profitable and are not interrupted by a stop, get out of the deal.
P.S. I use myself until the trial as follows. I opened the morning with about 5.00 to 6.00 GMT time-frame graphics D-1, GBP / USD pair and EUR / GPB, while the light blue cap points to close the day already, then that is coming next will be very likely - in the afternoon break. Put a stop order to buy at Hai closed down the day with a stop at Lowe's closed down the day Put a stop order to sell at Lowe's closed down the day with a stop at Hai and am waiting for a breakthrough. / Stop some put in the middle between Huy and low /
Sometimes it happens that the couple will throw first in one direction, work order, and then razvorachiaetsya turn triggered stop positions, but the losses almost always more than compensated.
Teyk profit put on the market situation over the previous 5-7 days, but I try to it was so third stop and 2 / 3 profit. Like all short.