The method is applied to the major currency pairs: EUR/USD, GPB/USD, USD/JPY, AUD/USD and USD/CHF. It can be made use of on the timeframe M15 and also further up.

This technique is not truly complex. It depends on the concept of curtail in price levels. Trading is executed within the network and from its boundaries. The most difficult and also essential thing is to spot trend direction. As an option you can use the indication "Zigzag". Boundaries of the channel, the lines of support and resistance, shall be accumulated along the spikes of the indicator. Afterwards it makes sense to analyze price behavior. The area of the graph near to the resistance line will show possibility of breakout. In this case, it is a good idea to open up lengthy settings at the lower boundary of the channel. Subsequently, do the contrary, if the rate is coming close to support level. You can make use of any other techniques or signs in order to establish trend direction.

You can either get in the market directly, or with the help of pending orders. Intend, the trend is "bullish" as well as the price goes to the bottom border of the network. We open up a lengthy position after which the rate will predictably increase to the upper boundary, where we will certainly have floating profit, and it deserves placing a routing stop. If the border is broken out, we will certainly get greater earnings; otherwise, our order will certainly be folded at the stop-loss with a revenue.

Currently, let's consider the circumstance after opening of the placement that the pattern has altered versus our expectations. In this situation we can open 2 positions opposite to the very first one. For instance, there can be two Offer positions; if the market continues to decline, earnings will certainly collect on your trading account from the first Sell position, the 2nd position will certainly hedge the loss brought on by the trading Acquire placement, which suggests that lastly they will compensate each other. As quickly as Offer positions have covered the costs of the spread and achieved profit, it makes good sense to shut hedged positions and place routing stop for the continuing to be positions.

Now, allow's examine the circumstance when market resumes growing after opening of 2 Market positions. In this case we will swiftly shut down 2 overlapping settings as well as open two Buy placements. Afterwards loss caused by the remaining Offer placement will be locked by at the same time shutting one Market and one Buy position. The continuing to be Buy setting will bring us earnings.

Consequently - regardless of the trend direction we will have the ability to gain profit as well as benefit from either situation. Nonetheless, remember that if you do not determine pattern direction appropriately frequently you can lose on spread as well as collected adverse closed settings; for that reason it is very vital to figure out pattern instructions sufficiently. This approach does not offer stop-losses, consequently it is not suggested to leave open placements until the following day.