Forex Strategy ABC
To begin with we find on the chart sudden movement. This momentum. Behind him will be developed events of interest to us.
Please note that it was after a sharp movement often occurs consolidation, which we wait for it.
The strategy, which we consider not provide instant input to this consolidation. Therefore, the first pullback we miss, and wait until the pattern "Flag" is formed, and we will see its completion.
It is particularly important to see three waves on the graph: A, B, C, which are arranged in a pattern "Flag".
This formation had different definitions, however, among volnovikov her name is not otherwise as ABC. The main idea - you need to wait until the last wave C is formed and then to its end and we are entering the market in the direction of the main trend using limit orders. For example, Buy Limit.
Please note, only one flag pattern ABC - It is not sufficient to access signals. It should also finds other signals in the graph, there must be three - four ideally. There may come divergence, as well as rollback on Fibonacci levels. Note that the point C should ideally located close to the level of 38.2 or, for example, 61.8 on the movement of flagpoles.
As soon as we have the direction of the main movement and points A and B are formed, we delay from the top, and for the downward movement of the bottom of the line through the point B and parallel to it through A another. This will be our banner, it is concluded in the channel.
Only now in the channel line, which passes through the point A you can place a limit order to buy or sell, depending on the direction of traffic on the flagpoles. It is important to understand that these two signals is not enough to enter. Confirmation is necessary to look at the Fibonacci lines or divergence. Also suitable for this moving average, or a support line of resistance, and so on.
Take Profit recommended spans several points below the top of the flagpole. When the downward movement, this point is located just above the bedplate on which the completed form flagpole. Also form part of this strategy, you can use a safety stop loss in profit zone, for example in the form treylingstopa.
Stop-loss should be placed on the next Fibonacci level, for example, at the level of 50% or 61.8% - if C is housed away from the level of 38.2 point. If the top or bottom of a C is close to 61.8%, then the stoploss placed at 76.4%. Beyond this level to place Stop Loss does not make sense, since increasing the likelihood of a market reversal.
It is important to understand that the market is not ideal for graphics model. Therefore, it may be that the point C is located a little above or below the correct line of the channel. With this turn of events, it is recommended to conclude a deal at the market price on razvernuvshemsya bar.
Also do not forget about money management.