Forex Strategy - Vegas-Wave (gain 352 points)
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A bit of theory. For the EMA (144) with a well-defined trend characterized by the fact that it appears the level of support for the price. When the price crosses the EMA (144) is formed signal, whereby the trend is likely to change its direction.Signal for opening positions according to the strategy Forex on the moving average method "Vegas-Wave" acts penetration channel EMA. The resulting fractal will act as an additional filter - at his trial, and exhibited a pending order.
To fix the profits can be used Elliott Wave Theory + levels and Fibonacci extension, which are measured from the first wave of Elliott the current trend.
Algorithm trade strategy based on moving averages "Vegas-Wave"
When the price above the price channel - a "buy zone" below - "area sales." When penetration top price channel formed EMA (144) and (169), after which it remains in the channel between the EMA or locked, for example, over the channel, we expect the formation of fractal. After his appearance (below) set a pending order (BuyStop - above the canal). An alternative option is to close one of the 5-candles of the fractal or above, or in the fractal.
When the trend changes direction, as the signal may also serve the usual fractal punched any EMA - closing the candle is not taken into account.
In other words, we wait until the pulse-formed roll back up, and then set a pending order BuyStop, hoping to break through this fractal.
Stop Loss be set at the opposite extreme of the EMA value of the first wave (for a local minimum), or lower than the previous fractal (purchase) in the case of entry into the market is not at the beginning of a reversal trend.
To open a short trade (pending order Sell Stop) using SLR rules.
Thus, the pending order is set to break the first fractal that appeared above or below the price channel EMA. Stop Loss to be installed above or below the first wave Elliott. In the case of the opening position is not in the first wave, Stop Loss set the previous fractal, located on the opposite EMA.
The position is closed 2 times: 50% fixed income or 262% Fibonacci extension at the amplitude of the first wave, or on the completion of the third wave of Elliott. The other 50% - 362% or 424 of the first wave, or on completion of 5th Elliot wave.
In the presence of sufficiently strong trend in the third wave, the first profit (50% of the position) is fixed at a stop price movements - about 300-338-362% Fibonacci of the amplitude of the first wave.
Trailing stop on open positions exhibited with the provisions of the previous fractal. To trade on the GBPUSD and EURUSD is better to work with about 07.00 to 17.00 GMT. Between 00.00-07.00 trade on these pairs is highly undesirable!
Pending orders for cross-pairs like GBPCHF, GBPJPY EURGBP and exhibited no time limit.
Ignore signals on strategy, if they appear after a sufficiently large price movement in the direction of these signals. In other words, do not have time to place a pending order - wait for the next signal.
Example. EURUSD, H1.
To open a short trade (pending order Sell Stop) using SLR rules.
Thus, the pending order is set to break the first fractal that appeared above or below the price channel EMA. Stop Loss to be installed above or below the first wave Elliott. In the case of the opening position is not in the first wave, Stop Loss set the previous fractal, located on the opposite EMA.
The position is closed 2 times: 50% fixed income or 262% Fibonacci extension at the amplitude of the first wave, or on the completion of the third wave of Elliott. The other 50% - 362% or 424 of the first wave, or on completion of 5th Elliot wave.
In the presence of sufficiently strong trend in the third wave, the first profit (50% of the position) is fixed at a stop price movements - about 300-338-362% Fibonacci of the amplitude of the first wave.
Trailing stop on open positions exhibited with the provisions of the previous fractal. To trade on the GBPUSD and EURUSD is better to work with about 07.00 to 17.00 GMT. Between 00.00-07.00 trade on these pairs is highly undesirable!
Pending orders for cross-pairs like GBPCHF, GBPJPY EURGBP and exhibited no time limit.
Ignore signals on strategy, if they appear after a sufficiently large price movement in the direction of these signals. In other words, do not have time to place a pending order - wait for the next signal.
Example. EURUSD, H1.
At 10:00 06.07.2011 price has broken through the top of the channel re-EMA, after already crossed it. Opens for sale at the opening of a new candle on 1.4424. Stop Loss set at one of the previous fractals - at 1.4563. Use trailing stop or trail the stop manually, focusing on fractals and Fibonacci extension.
Using a simple method (fractals), we see that the position is closed on a pullback of about 11.00 13.07.2011. The resulting profit amounted to 352 points.
Using a simple method (fractals), we see that the position is closed on a pullback of about 11.00 13.07.2011. The resulting profit amounted to 352 points.
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