How To Trade Futures

Komme auch aus Deutschl DukaSummer contest Visit contest's page. Code of Conduct Code of Conduct. As I already said: Because there are many possibilities to enter with the V-Power EA and they all need to be explained in detail, I have devoted an entire article for this topic.

Forex Reversal Strategy

This price action trade set up comprises of two bars. The two bars, in order to qualify this pattern must be significantly large and preferably have small upper and lower wicks. When a bearish bar followed by a bullish bar appears at the bottom, the 2 bar reversal is indicative of a bullish price action that is imminent. Likewise, when a bullish bar followed by a bearish bar is formed at the top, it is indicative of a bearish momentum coming into play in the markets.

The 2 bar reversal price action set up can be formed in any time frame of the charts. What makes this significant is the fact that they are nothing but the two price bars of a higher time frame. For example, a 2 bar formation in H1 charts is nothing but a single candlestick on a 2-hour chart. Or a 2 bar formation on the H4 chart, is a single candlestick or bar on the 8-hour chart and so on. Because the 2 bar reversal price action set up comprises of two opposite sentiments, when viewed through the higher timeframe, they most often signify a pin bar.

What is Pin Bar? The chart below shows a 2- bar reversal on the H1 charts: When we switch to the 2-hour chart, we notice that the price action of the 2 candles from H1 chart converts to a pinbar type of formation on the 2-hour charts:. The appearance of the 2 bar reversal price action set up primarily indicates a fight between bulls and bears , or buyers and sellers.

Often signified by large bearish and bullish bars, when they occur next to each other, the 2 bar reversal pattern often signifies a rejection of lower or higher prices by the markets where the preceding price action candle shows the market sentiment.

Therefore, when a bearish and a bullish bars appear in the 2 bar reversal method, the sentiment is in the direction of the bullish candlestick pattern and thus indicative of a bullish market sentiment. Likewise, the appearance of bullish and bearish bars appears within the 2 bar reversal method, it indicates bearish market sentiment. Quite often the 2 bar reversal methods can also include the second candle to be an engulfing pattern price action candle.

The measuring objective is the distance between point 2 and point 3 projected below the break at point 2. The stop loss is set just above point 3 but a more conservative stop loss is above the start of this move, at point 1. This is a choice that the trader must make and only by trading it over and over again will the trader feel comfortable with the choice of a stop loss. Also watch for reversal candlestick patterns at point 3 to trigger the entry.

This Figure summarizes the top and bottom trade. We just looked at scenario 1 which is the top. Now we will discuss the opposite scenario of a bottom. At a bottom, the market hits a low at point 1, trades up to point 2, trades back down to point 3, and back up through point 2 to begin a new uptrend.

We have just completed the section on the reversal pattern as confirmation of the end of the trend. However, while the end of trend top and bottom is a great entry method for taking reversal trades, most of your trades as swing and day traders will be trying to get into a trend move — getting into the trend in the middle of it. Notify me of follow-up comments by email. Trader Vic's uses a trendline from Point 2 TO 3.

You do NOT need any indicators at all. Too many traders use indicators as a crutch. They are widely used , but oversold. Price action , looking for the letters M and W to shape up , and simple " eyeball " trendline breakouts work! The has been around a very LONG time precisely because it is accurate without any of the " bells and whistles " , that many traders insist on adding , which only clutter up the screen.

They may look pretty especially the multiple moving averages or " rainbows " , but that's all. The " KISS " principal is correct]. Do not tinker with it. Sorry for all the yelling , but I do not know how to make this already simple approach any simpler!! Lino , and others - The is a simpler version of the Gartley pattern invented in It is similar to a Flag and the Elliott wave. It worked then and it still works. Larry Pesavento, who is a Harmonics devotee , added Fibonacci ratios.

The 5 legs in Gartley include the 4 legs that make up the letters M or W in the Google or Yahoo Gartley for details.