Rooks - forex strategy on patterns (gain 281 point)
Forex Strategy on patterns "Rooks" - Multicurrency and works on any time interval. In trading strategy "Rooks" we will use the ZigZag indicator (ZigZag), Andrews' Pitchfork and Fibonacci levels. Author strategy - Michael Vasilyev. All of the above is present in the standard toolbox Metatrader 4 in each forex dealing center .
Distinguish patterns "Blue Rook" and "Red Rook." First, let's look at the "Blue rook."
Need to find a downward spiral. Denote his AB (A maximum in the minimum) and build on this segment Fibonacci levels (A = 100% B = 0%) - Figure 1. At the level just above the Fibonacci 61.8% (price is at 1.4363), there is rolled back (rebound) - draw the segment BC (C-Max). After that the price goes down again - Apply segment CD (D-minimum).
A figure that turned out, and called "Blue rook" or "Rook, who flies down." That is, the point A - is the tail of a rook, B - his paws, C - ears or crown, D-beaked bird.
After the formation of the pattern "Blue Rook" is to build Andrews pitchfork on his tail, claws and ears (crown) - ABC (A - handle or base). We got a signal to the conclusion long position - the price crossed the upper Andrews pitchfork.
In carrying out the red line through the vertices A and C, except pitchfork, we will enter the sector position. As you can see, "Blue Rook" is lowered beak down - it seems that he is biting his feet. This divergence (divergence), which is another buy signal.
Stop Loss should be placed below the beak (point D).
1. Not establish position treylinguem.
2. Placed above the TP (A)
3. Close position installments on achieving points C and A.
"Red rook" can not be seen - it is different from the "Blue" that beak rook will be above the paws, and the position will be open for sale ("rook flying up"). All mirror symmetry.
It is important to remember that the division between "red" and "blue rooks" relative. They always go into each other - without the "red rook" will not "blue" and vice versa. This axiom gives us the opportunity often enough to be in the market, thus increasing profits.
If you use the " System 3 screens "that is, the analysis of graphs in three different time intervals - from highest to lowest, you get a more complete picture.
If you like strategy forex patterns on "Rooks", be sure to read the Elliott wave theory - according to her, "little rooks" will form the so-called "Flocks of rooks." For example, finding the graph two "red" and one "blue" rook, try to combine them into larger rook.
And finally, if the point C is above the point A (for "Blue rook"), the opening position is a pending order for purchase - BuyStop. Similarly, for "Red rook" - SellStop.
Example forex strategy - Rooks. EURUSD, H1 (Fig. 2).
Find the graph downward movement. Denote its maximum point A (1.4400), at least - to the point (1.4254). Next we put in our segment of the Fibonacci levels - point B will match the level of 0%, at A - 100%.
Forward recoil up. Price draws a new high at 1.4363 (point C). Hold the line Sun Further price goes down again, with approximately 61.8% Fibonacci - segment CD. Formed a pattern of "Blue Rook."
By points ABC construct Andrews pitchfork pointing down. Buy signal is the intersection of the upper part of the cost (channel) pitchfork. Next hold the red line through the points A and C, denoting the sector for a long position. "Blue Rook" lowered his beak - divergence also talks about buying.
Opens to buy at 1.4240 (just above the point D) or a little higher. Stop Loss - 10-20 points below the point D. Take Profit is not placed. Position closes parts by 50% reaching levels of points C (1.4361 = 121 point) and A (1,4400 = 160 points). Gross profit amounted to 281 point.
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