Double Pipes Pivot Swing Forex Trading Strategy
Double Pipes, one of the most overlooked candlestick patterns, yet is very powerful in its own right. Most traders have seen it. Many momentum traders might have even been consistently trading against it and have consistently lost to it. Maar wat is dit regtig?, and how do we make money out of it?
The Double Pipes Patterns
The double pipes patterns consist of two different patterns, the pipe tops and pipe bottoms. These patterns are basically reversal patterns, but what makes it peculiar compared to other reversal patterns is that it is a reversal of a strong momentum candle.
A typical momentum candle is a candle with a full body with little to no wick and is significantly larger than the preceding candles. Many momentum traders would immediately trade in the direction of the momentum candle and maybe rightly so.
Egter, there are also several instances wherein right after a strong momentum candle is another strong momentum candle that totally goes against the prior momentum candle, wiping out most, if not all of the ground that price has moved in just one candle. This is what a double pipes pattern is.
Pipe tops are bearish reversal patterns with the first candlestick being a bullish momentum candle and the second candlestick being a bearish momentum candle. Pipe bottoms on the other hand are simply the inverse of pipe tops. Pipe bottoms are bullish reversal patterns having the first candlestick as a bearish momentum candle and a second candlestick as a bullish momentum candle.
Trading against these types of patterns is not a good idea. These patterns have momentum behind it, enough to reverse the prior momentum move. The chances of getting a reversal right after is quite high.
Pivot Points as an Area for False Breakouts
Pivot points are indicator-based supports and resistances that many traders look at. Because these are areas of supports and resistances, these areas are prime locations of reversal. Egter, there are times when a momentum candle would pierce right through it. There are different ways to interpret it and position ourselves as a trader. Breakout traders would think of it as a breakout of a key area. But there are also instances when the breakout turns out to be false, also known as “fake-outs”.
If price does a fake-out on a pivot point, that is significant. This is because many breakout traders who have entered the trade prematurely would have their stop losses on the opposite side of the pivot point or level. As price squeezes them out and starts hitting those stop losses, price would gain momentum going to the other side.
Handel strategie Konsep
This strategy is about trading double pipes that signify a false breakout on significant pivot point levels. This means trading pipe bottoms on pivot point supports and pipe tops on pivot point resistances. Whenever we see such pattern taking shape, we place our trade setups accordingly.
Egter, we will not be taking the trade on the candle close. We will be waiting for the breakout on the extremes of the double pipe patterns. If trading a pipe bottom, we will be placing a buy stop order at the high of the pattern. If trading a pipe top pattern, we will be placing a sell stop order at the low of the pattern. We then wait. If price hits our orders within two candles, then our trade setup is valid. If it doesn’t then price may be starting a range or could continue its previous direction.
Because these momentum candles are extremely long, we will not be using the highs or lows of the candle for our stop loss. In plaas daarvan, ons gebruik die 50% of the pattern as a basis for the stop loss. If price retraces back to the 50% and we get stopped out, that invalidates our trade setup.
Aanwysers:
- PivotMonthly
Tydraamwerk: 4-slegs uur grafiek
Valutapaar: enige
Handelsessie: enige
koop (Lank) Handelsopstelling
Inskrywing
- Price should be tagging either the pivot point (golden rod) or either of the three support levels, S1, S2 en S3 (rooi)
- A pipe bottom pattern should take shape with candles that are significantly larger than the previous candles
- Place a buy stop order at the high of the pattern
Stop verlies
- Set the stop loss at the 50% of the pattern
neem Wins
- neem Wins 1: Set at the next pivot point level that allows for more than 1:1 beloningsrisikoverhouding
- neem Wins 2: Set at the pivot point level after the take profit 1 teiken
verkoop (kort) Handelsopstelling
Inskrywing
- Price should be tagging either the pivot point (golden rod) or either of the three resistance levels, R1, R2 en R3 (royal blue)
- A pipe top pattern should take shape with candles that are significantly larger than the previous candles
- Place a sell stop order at the low of the pattern
Stop verlies
- Set the stop loss at the 50% of the pattern
neem Wins
- neem Wins 1: Set at the next pivot point level that allows for more than 1:1 beloningsrisikoverhouding
- neem Wins 2: Set at the pivot point level after the take profit 1 teiken
Gevolgtrekking
Pipe tops and pipe bottom patterns are commonly used in different trading instruments. It also occurs in different timeframes. Using it in tandem with the Monthly Pivot Points as a swing trading is even more powerful.
This trading strategy allows us to trade at a more than 1:1 reward-risk ratio with a significantly good probability of success.
Forex Trading Systems Installasie-instruksies
Double Pipes Pivot Swing Forex Trading Strategy is a combination of Metatrader 4 (Hierdie artikel is 'n weesbladsy.) Aanwyser(s) en sjabloon.
Die essensie van hierdie forex stelsel is om die opgehoopte geskiedenis data en handel seine te transformeer.
Double Pipes Pivot Swing Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Gebaseer op hierdie inligting, handelaars kan verder prys beweging neem en hierdie stelsel dienooreenkomstig aan te pas.
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How to install Double Pipes Pivot Swing Forex Trading Strategy?
- Download Double Pipes Pivot Swing Forex Trading Strategy.zip
- Kopieer mq4 en ex4 lêers na jou Metatrader Gids / Kundiges / Aanwysers /
- Kopieer tpl-lêer (Patroonplaat) na jou Metatrader Gids / Patrone /
- Begin of herlaai jou Metatrader Kliënt
- Kies Chart en Tydraamwerk waar jy wil hê dat jou forex stelsel te toets
- Regskliek op jou handelsgrafiek en hang op “Patroonplaat”
- Move right to select Double Pipes Pivot Swing Forex Trading Strategy
- You will see Double Pipes Pivot Swing Forex Trading Strategy is available on your Chart
*Nota: Nie alle forex strategieë kom met mq4 / ex4 lêers. Sommige templates is reeds geïntegreer met die MT4 aanwysers van die MetaTrader Platform.
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