Forum transfer: Submitted by User on March 14, 2009 - 16:31.
Hi Edward, this is a great strategy I found. I got permission from Navin to post it here. Great site by the way!
- Z
Time Frame: 15Min Charts or Higher
Indicators: None - Have to go naked on this one
Creator: Navin Prithyani - http://www.urbanforex.com
Ok guys here is a intermediate to advanced strategy. But once mastered. It can be very powerful. Its basically support and resistance but it helps to take the guess work out of picking the right support or resistance level that will hold in the future. Ok enough yapping, lets get to the strategy already.
Strategy: You must be familiar with swing highs and swing lows. So what we need to watch out for now is swings. Once the market is moving, we keep an eye out for 2 swings and then the retracement. Confused yet? Ok just try and read the rest of this out first then I'll put down examples slowly 1 by 1 to show what I'm saying.
In a uptrend:
- You look for a swing high, label it, swing #1.
- Next, you wait for another swing to occur HIGHER than swing #1.
- Label this new high, swing #2.
- Place your buy entry at the high of swing#1.
- Wait for fill.
NOTE: SWINGS MUST BE CLEAR. TRY USING A UPSIDE DOWN "U" SHAPE.
In a downtrend:
- You look for a swing low, label it, swing #1
- Next, you wait for another swing to occur LOWER than swing #1.
- Label this new low, swing #2.
- Place your sell entry at the low of swing #1.
- Wait for fill.
NOTE: SWINGS MUST BE CLEAR. TRY USING A "U" SHAPE.
phew! man, putting this strategy into words is harder than making pips Wink
Ok here are the instructions with pictures: