Tell me, what type of strategy do you prefer? For example, to sit all day and look for successful signals to enter? Or maybe scalping? Or, on the contrary, long-term strategies that do not strain much? To each his own, all the more so that the analysis of price dynamics makes it possible to combine several different types of tactics at the same time. All individually.
Below we will offer you a strategy that, in its dynamics, keeps the trader constantly under pressure. Due to the high frequency of the signals, you can sit at the monitor and click the mouse on orders all day. True, the more signals, the greater the likelihood of loss. But, you see, everything is relative. You can catch one signal in 24 hours and it will be unprofitable (loss is 100%), or you can catch 10 signals and 5 of them will be unprofitable (50/50). Probability theory plays both ways and high-frequency intraday strategy is only a plus.
Analysis of price dynamics using the Dynamic Trend indicator
The disadvantage of building strategies based on resistance and support levels is that there is no clarity on how many points and on which ones they should be built: at the closing price or at the ends of the candle. Inaccuracy can cost the loss of money. The analysis of price movements makes it possible to construct changing levels that turn into flexible lines on a chart. One of the variants of such lines is sliding, which are classics. Therefore, we will offer another option: the Dynamic Trend indicator.
- We remind you that in order to get an indicator pattern for free, you only need to ask about it in the comments after the review. We will send it to you at the first opportunity.
We will not go into the essence of the Dynamic Trend indicator, this is a separate topic for discussion. The essence of the proposed strategy is to make money on the breakdown of dynamic price levels, opening deals at the time of the coup. This is an analogue of channel strategies, where a deal opens almost immediately after the breakdown of the channel boundary.
- The timeframe is H1. You can risk reducing the interval to 30 minutes, but then it makes sense to change the settings of the indicator.
- Asset – EUR / USD.
- Dynamic Trend settings: Percent = 15, Maximum period = 50).
Conditions for opening a long position:
- The price of several candles was below the indicator line.
- The rising candle opened and closed above the Dynamic Trend line.
- Foot length – 50-100 points.
After reaching a profit of 50 points, 1/3 of the position is closed. After 100 points we close another 1/3 and move the stop loss to the breakeven level. The remaining position is insured by trailing with a length of 15 points.
Conditions for opening a short position:
- The price of several candles was above the indicator line.
- A downward candle opened and closed below the Dynamic Trend line.
The principle of opening a transaction is similar. This strategy will give frequent signals to open trades, which will be closed in a small minus. But the very first transaction in the plus will be substantial enough to recoup the loss. The probability of closing a trade by stop is almost absent. You can manually control a trade by dragging a stop instead of trailing, at the discretion of the trader. We hope that we were able to offer you another interesting strategy for analyzing price movements that will bring you at least the pleasure of trading, as a maximum profit. Enjoy your trading!