Trending markets are excellent market conditions to find high probability trade setups which could help traders consistently earn a profit from the forex market. This is because trending markets tend to provide the trade direction as a given. Price tends to move in the direction of the trend more often than not. This gives traders the answer to one of the two most important questions when entering a trade. That first question is which direction should the trade be taken. Traders who could answer that tend to have a higher probability of turning in a profit on each trade more often than not.
Emellertid, the second question tends to be the trickier one. Where or when do we take the trade? It might be a given which direction we should take, however entering at the wrong time might give us a higher risk compared to our potential profits. Trend and momentum traders who tend to chase price often ends up losing bigger amounts than the profits they are earning.
This is where trading on retracements come into play. Retracements are scenarios in a market wherein price is reverting closer to its mean as the market contracts for a while. Emellertid, it does not mean that the trend is reversing. Ofta, after the retracement is another momentum push moving in the direction of the trend.
Här, we will explore how the Binary Options Bands indicator can be used to anticipate deep retracements.
Binära alternativband
Binary Options Bands is a custom technical indicator which is a channel or band type of indicator. It was mainly developed to be used in the binary options market. Emellertid, this indicator also works well with the forex market.
This indicator plots three lines that form a channel like structure. The top line is based on the highest high plotted by price action within a preset period. The bottom line is based on the lowest low of price action within the same period. The middle line is simply the median of the top and bottom lines.
This indicator can be used to identify trend direction. This is simply based on which half of the channel price action is generally staying. If price action is usually on the upper half, då är trenden hausse. Å andra sidan, if price action is usually on the lower half of the channel, då är trenden bearish. If price action tends to whipsaw the middle line, då är marknaden inte trendig.
The middle line can also be used as an area of dynamic support or resistance. Price tends to bounce off these levels during a trending market condition.
Stokastisk Cross Alert
Stochastic Cross Alert indicator is a custom signal indicator which is based on the Stochastic Oscillator.
The Stochastic Oscillator is a widely used oscillator which plots two lines that oscillate within the range of zero to 100. These lines are derived from recent price movements and are used to identify trend or momentum direction. Om den snabbare linjen är ovanför den långsammare linjen, the momentum is said to be bullish. Å andra sidan, the momentum is bearish if the faster line is below the slower line. Crossovers between the two lines indicate a potential momentum reversal.
The Stochastic Oscillator range also typically has markers at level 20 Och 80. Lines crossing below 20 indicate a probable bullish mean reversal coming from an oversold condition, while crossovers occurring above 80 indicate a bearish mean reversal coming from an overbought condition. Both conditions tend to be high probability reversal signals.
Stochastic Cross Alert-indikatorn är baserad på detta koncept. It plots an arrow pointing up if its underlying stochastic lines indicate a bullish momentum reversal, and an arrow pointing down if it detects a bearish momentum reversal.
Handelsstrategi
Options Bands Retracement Forex Trading Strategy is a trend following strategy which trades on retracements based on the Binary Options Bands indicator while using the Stochastic Cross Alert indicator as the entry signal.
Första, trend direction must be identified using the Binary Options Bands channel. Trend direction is based on the general location of price action in relation to the midline of the Binary Options Bands channel. This would indicate which half of the Binary Options Bands channel price action is generally residing.
då, as the trend is identified, we wait for price to retrace towards the midline of the Binary Options Bands channel. Price action should reject it indicating that it is respected by price as a dynamic support or resistance level. The momentum reversal is then confirmed based on the Stochastic Cross Alert indicator plotting an arrow pointing the direction of the main trend.
Indikatorer:
- Binary-options-bands
- Stochastic_Cross_Alert
- K Period: 15
Föredragna tidsramar: 30-Minuters, 1-Timme, 4-timme och dagliga diagram
Valutapar: FX majors, minderåriga och kors
Trading Sessions: Tokyo, London och New York sessioner
Köp Trade Setup
Intrade
- Price action should generally be on the upper half of the Binary Options Bands channel.
- Price should retrace towards the midline of the channel.
- Ange en köporder så snart stokastisk cross alert-indikator ritar en pil som pekar uppåt.
Stoppa förlust
- Ställ stop loss på stödet under posten ljus.
Avsluta
- Stäng handeln så snart indikatorn Stochastic Cross Alert ritar en pil som pekar nedåt.
Sälj Handel Setup
Intrade
- Price action should generally be on the lower half of the Binary Options Bands channel.
- Price should retrace towards the midline of the channel.
- Ange en försäljningsorder så snart stokastisk cross alert-indikator ritar en pil som pekar nedåt.
Stoppa förlust
- Ställ stop loss på motståndet över posten ljus.
Avsluta
- Stäng handeln så snart stokastisk cross alert-indikator ritar en pil som pekar uppåt.
Slutsats
This trading strategy which is centered around the use of the Binary Options Bands indicator as a means of identifying trend direction is an effective trading method.
Although the said indicator was mainly developed for Binary Options, it is still very effective when used in most forex pairs.
The key is in identifying trending forex pairs properly. Trade setups tend to work well when used in the right trending market environment.
Forex Trading Strategier Installationsanvisningar
Options Bands Retracement Forex Trading Strategy is a combination of Metatrader 4 (MT4) Indikator(S) och mall.
Kärnan i denna forex strategi är att omvandla den ackumulerade historia data och signaler handel.
Options Bands Retracement Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Baserat på denna information, handlare kan anta ytterligare prisrörelser och justera denna strategi därefter.
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How to install Options Bands Retracement Forex Trading Strategy?
- Download Options Bands Retracement Forex Trading Strategy.zip
- *Kopiera mq4- och ex4-filer till din Metatrader Directory / Experter / Indikatorer /
- Kopiera tpl-fil (Mall) till din Metatrader Directory / Mallar /
- Starta eller starta om din Metatrader Client
- Välj Diagram och tidsram där du vill testa din forexstrategi
- Högerklicka på din handel diagram och sväva på “Mall”
- Move right to select Options Bands Retracement Forex Trading Strategy
- You will see Options Bands Retracement Forex Trading Strategy is available on your Chart
*Observera: Inte alla forex strategier kommer med mq4/ex4 filer. Vissa mallar är redan integrerade med MT4 Indicators från MetaTrader-plattformen.
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