Main photo Pending The Reversal Strategy

Pending The Reversal Strategy

  • By dzonefx
  • 3125 views

Instruments: All  

Timeframe: M15 and above

The indicators to be used:

  1. Moving average (Period 100, Exponential, High);
  2. Moving average (Period 100, Exponential, Low);
  3. Bollinger Bands (Period 10, Deviation 2.3).

Requirements for making a buy transaction (Fig. 1):

  1. Uptrend.
  2. The price is above the red line (Moving average (Period 100, Exponential, Low)).
  3. Wait for the moment when the price either reaches or breaks down the bottom line of the Bollinger bands.
  4. Buy when the price goes back above the bottom line of the Bollinger bands, or at the opening of the next candlestick.

Fig. 1

Conditions required for closing transactions:

  1. Close the order if the price either reaches or breaks down the upper line of the Bollinger bands.
  2. Stop Loss is at the level of the nearest local low.
  3. Take profit  is in the ratio of 2:1 to Stop Loss

Requirements for sell transactions (Fig. 2):

  1. Downtrend.
  2. The price is below the blue line (Moving average (Period 100, Exponential, High)).
  3. Wait for the moment when the price either reaches or breaks down the upper line of the Bollinger bands.

Sell when the price goes back below the upper line of the Bollinger bands, or at opening of the next candlestick.

Fig. 2

Conditions required for closing transactions:

  1. Close the order if the price either reaches or breaks down the bottom line of the Bollinger bands.
  2. Stop Loss is at the level of the nearest high.
  3. Take profit  is in the ratio of 2:1 to Stop Loss.

dzonefx
dzonefx

Risk Warning: Trading on Forex and Binary Options carries a high level of risk and it is not suitable for all investors.There is always a possibility of losing some or all of your initial investment, so you should not invest money which you can't afford to lose.Eventhough we Forex Stock Exchange Forum -fxsforexsrbijaforum.com,does not provide any investment advice you should be aware of the risks involved. Any opinions, news, research, analyzes, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice.Forex Stock Exchange FORUM will not accept liability for any losses, which may arise directly or indirectly from use of information from our website.You trade at your own risk!

Recommended publications