Mean reversal trading strategies are not as popular as other types of trading strategies. Most traders would often go for momentum trading strategies, breakout trading strategies, trend following strategies or trend reversal trading strategies.
Walau bagaimanapun, in spite being not as popular as other types of strategies, mean reversal trading strategies are one of the more effective types of strategies. This is because mean reversal strategies work well in different types of trading conditions. It could be used in ranging markets and trending markets, granting that trades are taken in the direction of the trend.
Mean reversal strategies have some similarities with full blown trend reversal strategies. Both strategies aim to sell at peaks and buy at bottoms. The difference is in the type of trends that are expected to reverse. While trend reversal strategies are aimed at reversals from a longer-term trend, mean reversal strategies are geared towards shorter term reversals caused by the imbalance of overbought or oversold markets. These price extremes often cause price to reverse back to the mean causing a short-term reversal.
Pin Bar Correlation Reversal Forex Trading Strategy is a short-term mean reversal trading strategy. It identifies overbought and oversold conditions using a unique indicator. It also pinpoints probable reversal price points and the actual reversal signal, making trade execution much easier.
Spearman’s rank correlation coefficient or Spearman’s rho, named after Charles Spearman, is a type of correlation used in statistics which is a nonparametric measure of rank correlation. This pertains to the statistical dependence between the rankings of two variables.
This method of statistical correlation is then applied to trading and developed as a technical indicator.
The Spearman Correlation indicator correlates the movement of price and a Simple Moving Average (SMA). Because the SMA is derived from price movements, it is natural that the two are directly correlated. Walau bagaimanapun, the interesting part is that if the Spearman Correlation line is plotted on a window together with the SMA line, an effective oscillating indicator could be observed.
This oscillating indicator shares the same characteristics as the Stochastic Oscillator. It has two lines oscillating in a range between -1 Dan 1. The faster line is the Simple Moving Average, while the slower line is the Spearman Correlation line derived from the SMA.
Since the lines oscillate within a range, overbought and oversold conditions could easily be observed. Dalam persediaan ini, lines above 0.7 is considered overbought and lines below -0.7 dianggap terlebih jual. Mean reversal trade signals are generated whenever the lines crossover while overbought or oversold.
The indicator also identifies probable congestion price points whenever the two lines start to contract while overbought or oversold. This gives traders an early indication where price might reverse in the short-term.
This trading strategy provides trade signals based on the Spearman Correlation indicator.
Untuk menggunakan strategi ini, the lines on the Spearman Correlation indicator should indicate an overbought or oversold market condition. The indicator should also mark the area which price might reject.
Trade signals are considered valid whenever a pin bar price pattern occurs in confluence with an entry signal provided by the Spearman Correlation indicator.
- Correlation-mt4-indicator (pengesetan lalai)
Tempoh Masa Pilihan: 15-Minit, 30-Minit, 1-jam dan 4 jam carta
Pasangan Mata Wang: pasangan utama dan kecil
Sesyen Trading: Tokyo, London and New York pairs
Beli Persediaan Perdagangan
- The Spearman Correlation lines should both be below -0.7 menunjukkan keadaan oversold.
- The indicator should mark a lime line on the price chart indicating the area where price might reverse.
- Price should touch the lime line.
- The indicator should provide an entry signal indicated by an arrow pointing up.
- The candle corresponding the entry signal should be a bullish pin bar candle.
- Masukkan pesanan belian pada pengesahan syarat-syarat ini.
- Menetapkan stop loss di bawah lilin kemasukan.
- Set the stop loss below the lime line.
- Close the trade as soon as a candle touches the red line marked by the indicator.
Jual Persediaan Perdagangan
- The Spearman Correlation lines should both be above 0.7 menunjukkan keadaan overbought.
- The indicator should mark a red line on the price chart indicating the area where price might reverse.
- Price should touch the red line.
- The indicator should provide an entry signal indicated by an arrow pointing down.
- The candle corresponding the entry signal should be a bearish pin bar candle.
- Masukkan pesanan jual pada pengesahan syarat-syarat ini.
- Menetapkan stop atas lilin kemasukan kerugian.
- Set the stop loss above the red line.
- Close the trade as soon as a candle touches the lime line marked by the indicator.
Mean reversal strategies are one of the most effective types of trading strategies and this setup of a mean reversal signal is one of the most accurate signals.
If you would visually observe historical prices, you would notice how price would often follow the direction provided by the indicator based on the oscillation of the two lines. Price would typically reverse to the downside whenever a signal is generated while being overbought, and price would also reverse to the upside whenever a buy signal is generated while being oversold.
There cases however when signals are generated and price would provide some indications of a congestion which may lead to a short-term reversal, yet price would continue its initial trend direction. This is why it would still be smart to align trade setups with the longer-term trend.
keseluruhan, this strategy is very effective and could provide consistent profits over the long-term. Master this and you could be on your way to consistent profits.
Arahan Pemasangan Strategi Dagangan Forex
Pin Bar Correlation Reversal Forex Trading Strategy is a combination of Metatrader 4 (MT4) Penunjuk(S) dan template.
Etipati strategi forex ini adalah untuk mengubah data sejarah terkumpul dan isyarat perdagangan.
Pin Bar Correlation Reversal Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Berdasarkan maklumat ini, peniaga boleh menganggap pergerakan harga selanjutnya dan menyesuaikan strategi ini dengan sewajarnya.
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How to install Pin Bar Correlation Reversal Forex Trading Strategy?
- Download Pin Bar Correlation Reversal Forex Trading Strategy.zip
- *Salin fail mq4 dan ex4 ke Direktori MetaTrader anda / Pakar / Penunjuk /
- Salin fail tpl (Template) ke Direktori MetaTrader anda / Template /
- Mulakan atau mulakan semula Klien MetaTrader anda
- Pilih Carta dan Tempoh Masa di mana anda mahu menguji strategi forex anda
- Klik kanan pada carta dagangan anda dan hover pada “Template”
- Move right to select Pin Bar Correlation Reversal Forex Trading Strategy
- You will see Pin Bar Correlation Reversal Forex Trading Strategy is available on your Chart
*Ambil perhatian: Tidak semua strategi forex datang dengan fail mq4 / ex4. Sesetengah templat telah diintegrasikan dengan Petunjuk MT4 dari Platform MetaTrader.
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