The Advantage Of The Range With High Ris
EDIT, - I don't use this STR myself
The method is very simple and is based on the idea that a range cannot last forever; Need will undoubtedly break out at some point.
The bar I'm using here can be seen on this post http://www.forexfactory.com/showthread.php?t=205471 which was initiated by Zebron. I don't know who came up with the idea to flood these bars, but I saw them for the first time in this thread and I thank all the people involved in it, especially Zebulon.
Let's get on with it.
We don't need any indicators here, you can just draw these bars manually using rectangles. But in the second article, there is an indi that does this for you. There is also an indi that draws horizontal lines on the chart and my template.
rule
1When the price forms 4 different bars in a row, we use the fourth bar to open a position. (As shown in the image below) If it still forms an opposite bar, we double the size until it breaks out of the range, or possibly, blows your account if you risk too much.
The bar size I'm using here is 100 pips. The same goes for stop loss and profit sizes. The currency pair I trade is GBP/USD. One might want to look into other currency pairs as well.
The later we are in that range, the more likely it is that it will break out soon and use the double less often. I wouldn't double it more than 4 times.
As you scroll backwards on the chart, you will see how many times a particular currency pair ranges and how much more or less you can expect. Some people may find it necessary to start a trade after only 3 bars, but this is certainly riskier and I would not recommend it. I suggest you take responsibility for your actions and don't blame me if it doesn't work out.
careful
S.
The method is very simple and is based on the idea that a range cannot last forever; Need will undoubtedly break out at some point.
The bar I'm using here can be seen on this post http://www.forexfactory.com/showthread.php?t=205471 which was initiated by Zebron. I don't know who came up with the idea to flood these bars, but I saw them for the first time in this thread and I thank all the people involved in it, especially Zebulon.
Let's get on with it.
We don't need any indicators here, you can just draw these bars manually using rectangles. But in the second article, there is an indi that does this for you. There is also an indi that draws horizontal lines on the chart and my template.
rule
1When the price forms 4 different bars in a row, we use the fourth bar to open a position. (As shown in the image below) If it still forms an opposite bar, we double the size until it breaks out of the range, or possibly, blows your account if you risk too much.
The bar size I'm using here is 100 pips. The same goes for stop loss and profit sizes. The currency pair I trade is GBP/USD. One might want to look into other currency pairs as well.
The later we are in that range, the more likely it is that it will break out soon and use the double less often. I wouldn't double it more than 4 times.
As you scroll backwards on the chart, you will see how many times a particular currency pair ranges and how much more or less you can expect. Some people may find it necessary to start a trade after only 3 bars, but this is certainly riskier and I would not recommend it. I suggest you take responsibility for your actions and don't blame me if it doesn't work out.
careful
S.
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