1-2-3-4 Forex Reversal Trading Strategy
1-2-3-4 Forex Reversal Trading Strategy – Hello friend of traders, on this occasion forextradingwin.com want to share with you about the 1-2-3-4 Forex Reversal Trading Strategy.
A 1-2-3-4 turnaround chart pattern is accumulate of 4 definite factors, known as point 1, 2, 3 and 4. A common 1-2-3-4 chart pattern is best traded after a solid money pair – or drop and also can be specified by a very easy collection of trading regulations. A trader could confirm the turnaround profession making use of a technical indication such as DMI or MACD.
1-2-3-4 Basic Regulations for Brief Professions
- Factor (1): The high in an up trending money market.
- Factor (2): A descending improvement in the up trend, the most affordable bar in the correction before the price returns up to factor (3).
- Point (3): The high in the go up from Factor (2) but a failing to make a new higher high(Point 1).
- Point (4): Go short 1 pip here point (2).
1-2-3-4 Basic Policies for Long Trades.
The opposite is true when applying these basic policies for lengthy trades today:.
- Factor (1): The low in a down trending money market.
- Factor (2): A higher correction in the sag, the highest bar in the improvement before the cost falls back up factor (3).
- Point (3): The reduced in the action below Point (2) however a failure to make a new lower reduced(Factor 1).
- Point (4): Go long 1 pip over point (2).
1-2-3-4 Up Forex Turnaround Strategy making use of MACD.
- Trade this reversal pattern just after a strong drop.
- Area factors (1),(2) and also (3) on your record.
- Area a BUY order 1 pip above (2).
- Confirm the trade using the MACD indication (or another); the MACD must indicate a buy or in buy mode currently.
- Target degree: Determine the distance in between (2) and even (3); if as an example the range in between (2) and also (3) is 50 pips, compared to 50 pips is your target degree.
- Area your stop 1 pip listed below (3).
1-2-3-4 Down Foreign exchange Turnaround Technique Utilizing DMI.
- Trade this reversal pattern only after a solid up trend.
- Area points (1),(2) and (3) on your record.
- Area a MARKET order 1 pip below (2).
- Confirm the trade utilizing the DMI sign (or another); DMI needs to indicate a sell or in sell method already.
- Target level: Determine the distance in between (2) and also (3); if as an example the range between (2) and (3) is 250 pips, than 250 pips is your target degree.
- Place your quit 1 pip above (3).
That is the 1-2-3-4 Forex Reversal Trading Strategy, if this article useful for you please share with your other friends.