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.

Join the Facebook community of FBS!

Beginner Forex book

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

Email tooltip

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

View
Price Action Strategy: Method Jarroo

Price Action Strategy: Method Jarroo

2021-12-16 • Updated

Information is not investment advice

This article describes the strategy known as ‘Method Jarroo’. It is based on the concept of price action but with some unique features. Are you interested? Then, let’s explore this strategy!

Define key levels

  • Identify swings. Find the local minimum and maximum levels of the price movement. They should be eye-catching.
  • Then, draw the horizontal lines through the levels which lie at the local highs and lows. There should be at least two candles that close/open near these levels.

The levels above the price will be called resistance levels, below – support levels.

1.png

Entry rules

  • After the candlestick breaks the resistance level and closes above it, we consider opening the pending order for buying.
  • After the candlestick breaks the support level and closes below it, we consider opening the pending order for selling.

If you forgot or don’t know what pending orders are, read our article with a clear explanation called “Traders’ secret weapon: pending orders”.

1.png

Stop Loss

  • Place Stop Loss below the low of the candle that broke the resistance
  • Place Stop Loss above the high of the candle that broke the support

If the candle is too large, you can place the Stop Loss just slightly below resistance / above the support level.

2.png

Take Profit

To place Take Profit, you’ll need to find the nearest levels of support and resistance as well. It should be greater than the Stop Loss by 2 or 3 times. For example, if you put the Stop Loss 30 pips higher than the current price level, you should consider placing Take Profit 90 pips lower than the current price.

3.png

Risk management

According to risk management rules, a trader should use no more than 1-2% of the deposit to open one order.  Besides, there is a more conservative way to use this strategy. After the signal candle appears and breaks the support/resistance level, a trader shouldn’t open the pending order as written above. Instead, he/she should wait for the next candlestick to occur in the chart. Then, if this next candlestick doesn’t break the critical level back, a trader should place a pending order.

4.png

Great! You’ve just learned a pretty hard strategy! If you want to try it, use the Demo account!

Similar

Choose your payment system

Be on top of your game

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