Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View
Inside Trend System

Inside Trend System

Information is not investment advice

Let’s discuss the effective strategy, which presents the mix of best ideas of well-known traders such as Larry Williams, Ralph Elliott and Alexander Elder. Step by step we will go through this strategy to make it clear for you. Are you ready? Let’s get started.

Find maximum and minimum

First of all, let’s introduce key definitions, that we will use in this strategy.

A maximum is a candlestick, which is located between two other candlesticks with lower highs. Moreover, it’s important that the next candlestick to the maximum should have lower low.

max_strategy.png

A minimum is a candlestick, which is located between two other candlesticks with higher lows. Moreover, it’s important that the next candlestick to the minimum should have higher high. Look at the examples below. 

min_strategy.png

 

Define reversal

A trend is the general direction of the price of an asset on the market. Uptrend (bullish trend) consists of a series of higher highs and higher lows – prices are moving up. Downtrend (bearish trend) is classified as a series of lower lows and lower highs – prices are moving down. The best moment to enter the market is the trend reversal.

There are two ways to define a reversal:

1. If there is an uptrend and you find a minimum, draw a line through its close price. If after the breakout of this line two next consecutive candlesticks close lower than this line, it should be a trend reversal.

reversal2.png

2. If there is a downtrend and you find a maximum, draw a line through its close price. If after the breakout of this line two next consecutive candlesticks close higher than this line, it should be a trend reversal.

reversal1.png

 

Enter the market

Ok, now we are able to define the reversal. Let’s try to find the right moment to enter the market. We will use the concept of Elder’s triple screen strategy. According to it, when there is a signal on a bigger timeframe, wait for it on a smaller timeframe and enter. Pay closer attention to all the conditions. Some steps may confuse you, but pictures will make everything clear.

Here’s below the detailed instruction:

1. Find the reversal of the trend on the daily chart as written above.

2. Switch to the 4-hour chart.

3. The 1st case: the uptrend occurs on the daily chart.

  • Wait for the breakout of the level of the closest minimum on the 4-hour chart.
  • After the breakout wait for a new maximum. If it happens, consider buying.
  • Put Buy Stop above the new maximum, Stop Loss – below the next candlestick, that closed lower than this maximum.
  • Then shift Stop Loss upward and put it below every new minimum.

uptrend for strtehy.png

4. The 2nd case: the downtrend occurs on the daily chart:

  • Wait for the breakout of the level of the closest maximum on the 4-hour chart.
  • After the breakout wait for a new minimum. If it happens, consider selling.
  • Put Sell Stop below the new minimum, Stop Loss – above the next candlestick, that closed higher than this minimum.
  • Then shift Stop Loss downward and put it above every new maximum.

*On the 4-hour chart you don’t need to wait for two consecutive candlesticks after the breakout of maximum or minimum level as we waited on the daily chart. You just need the breakout of this level.

downtrend for strategy.png

Great! You’ve learned the new effective strategy! It’s really unique because of its simplicity and effectiveness. Stop losses will prevent you from failures. However, be aware that it’s better to avoid using this strategy in times of important economic events such as NFP releases. In addition, you can use not only the whole strategy, but also its parts: defining reversal of a trend, finding minimums and maximums and putting pending orders. Enjoy your trading!

LOG IN

Similar

Popular

Dollar hits new 31-month low

U.S. stocks are seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.

EUR/GBP: Bullish trend remains strong

A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.

Choose your payment system

Learn more

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later