FOREX three touch
forex strategy 3 Touch
Often transacting the purchase of upstream and deals to sell in a downtrend, most FOREX traders do not coincide with the rhythm, present in the moment on the market . It should be noted that we do not consider the situation where the sales process is in the process of nucleation trend.
This forex strategy "3 Touch" we will talk about, how to behave in an existing trend in the market . And in this case the best moments of entering the market are based on the use of trend lines with the support or resistance , which are determined by the latest trends in completed.
Forex Strategy "s Touch" works well on the day intervals as well as hourly and 30-minute and on all currency pairs.
I suggest you consider the best 2 points, that allow a deal with a fairly high probability of making a profit at a relatively low probability of risk in the current market trend. In each of these we will use limit orders (Buy Limit and Sell Limit) , and only sometimes - the transaction will be concluded at market orders, and then if it would be a very good reason.
Consider point 1 - conclusion of the transaction for the purchase of the uptrend line at 3rd contact with him .
emeem We are dealing with uptrend if the successive maxima and minima increases . We thus have the opportunity to ascending line on the 2-m minimum price , which are the absolute bottom relative to at least 2 previous and 2 subsequent candles.
In this situation, most the best time for a deal on the purchase occurs at the 3rd touch of the rising price trend line . At this point, of course, need to buy - and be sure to buy (see Fig. 1).
Stop-Loss in this case must be put:
at closing on Limit Order - for 2nd or below the line of least resistance by 20-30 points (can also be below the important level of Fibonacci)
Entering the market on a market order , the formation of reversal candles and rebound from the resistance line (and certainly at the closing of the candles on the chosen time interval) - below the resistance line and below, respectively candles at the 3rd touched by 10-15 points (depending on the chosen currency pair and time interval).
Teyk-profit is determined by the Fibonacci extension or postavte important to the local maximum, or do not stavte, and use the a trailing stop and close the deal part.
Using this strategy, trading, you must first determine price levels. Of course the best option - to use for this day price charts , where each of the last day will have its price level. A more accurate alignment can be carried out, use for this H1 or M30 price charts.
Picture. 1. Puncture in the ascending trend line of the day could not develop and the closing occurred above the trend, thus confirming its continuation. All who did not or was afraid to make a deal within days, had another chance to enter the market in a booming market for its long side and in subsequent trading days, although the effect is was certainly less , and the level of < em> stop-loss a little more.
In this strategy, forex trading results in false negative impact punctures, which create the illusion of breaking through the trend line. And to admit the truth or falsity of this breakthrough can not be up to the point, until the candle, breaking the trend will not disappear , and will not start haggling next - so always wait for closing the candle, and only if there was a reversal candle - enter the market . Good confirmation for open positions may be as oscillator signals ( divergence, as well as increased volume in the third touch and bounce - which increases the chances at the conclusion of a profitable trade).
Usually, if the trend in the market is strong enough, then the closing price of the candle is returned to him, and it is often possible to observe that the closing price is almost exactly on the trendline. Chances of concluding a successful deal to buy only increased: while even if the break below the uptrend occurs, something happens it is certainly not today, and the price the market will be quite some time, fluctuate around a given point, indicating that periodically force then weakness.
Point 2 - Sale of the line falling trend in the 3rd touch with her.
This point - the absolute mirroring the transaction at the point 1.