You end up not only having the negative emotions from losing money with these dead-end, no-hope products At the close of a candle, the Parabolic SAR vaule is calculated for the next candle. Risk management is an essential but often overlooked prerequisite to successful active trading.
Forex Trading Strategy – the Bladerunner
These indicators are also known as the off-chart indicators. However, you can use your favourite indicators if you are confident about them. For example, some people trade this strategy along with the Fibonacci levels, which is completely fine as long as you are comfortable with it.
These are very useful indicators, in fact, you can use them in combination as well and trade it along with the Bladerunner strategy as a Bollinger band trading strategy. In the following example, 20 EMA has been used. It can be traded on any pair and on any time frame. You can trade Bladerunner strategy at any time during a trading day, and every trader must be aware of the fact that there is a particular time in a day which is more suitable for some strategies than others.
For example, the time, when the Asian market starts, is favourable in terms of giving entry due to a reasonable breakout and retest, but the Asian afternoon market is comparatively slow. On the other hand, if you look at the London market, it opens with the highly volatile and erratic prices and it will be irrational to reasonably enter for trading. Once the prices are settled after the initial announcements and market news, traders are likely to get more reliable entries.
Therefore, being a trader, it is important for you to adapt your strategy, according to a suitable time duration to trade them. If you want to enter into trade using this strategy, it is important that the price must be trending, meaning it should break apart from a range or consolidation before the entry, and 20 EMA re-testing should be a success.
So, the question is, what is meant by successful re-testing? And if it is below the EMA, it should stay that way. First, the trader may place two stop orders to sell, while the entries should be pips below the candle, which provides confirmation;.
Second, the protective stop may be placed pips above the signal candle, which came into contact with the EMA;. After the start of the trading day on June 25th we began looking for the range high and range low. Eventually the price broke out from the range and reached a new higher high. Next, we anticipated a successful retest of both the period EMA and the prior range high. This occurred at 9.
The following bull candle confirmed the move to the upside, thus, it became the confirmation candle. It closed at 9. The next step we took was placing two stop orders to buy, with the entry point being 3 pips above the close of the confirmation candle, or at 9.
The protective stop was placed 3 pips below the signal candle, or at 9. So, the entry point at 9. The profit target on our first buy order was equal to the amount of pips risked 61 pips.
Thus, we took profit at 9. The profit target on our second buy order was equal to double the amount of pips risked pips. Therefore, we closed our second position at 9. Founded in , Binary Tribune aims at providing its readers accurate and actual financial news coverage. Our website is focused on major segments in financial markets — stocks, currencies and commodities, and interactive in-depth explanation of key economic events and indicators.
Wednesday , October 3rd.