myforex Strategy Two Fingers
To date, we will analyze an elementary trader strategy called "Two Fingers." The name can be considered as a criterion of simplicity of forex trading strategy or as a known sign "V" - i.e. a symbol of victory. It is accepted that in following the trend on the day schedules, there is a huge number of entry points, as well as position adjustments using a low time frame. This concept was previously widely known because of its own high productivity.
Installation of files
The installation of the system is quite easy. First expand the terminal information directory, click File, and then click Open Data Directory. Then unpack the forex trading strategy archive to the terminal data catalog and run the strategy in the program window. Among other algorithms and selecting Profiles, set "Two Fingers."
If you have done everything correctly, you can simply go to settings and testing by selecting the time frame D1 or H4.
Idea of the Two Fingers Strategy
First we determine the long direction in the daily schedules, which often lasts for several weeks or months. At the same time, as in the case of changes in other rates, there are so-called kickbacks on the day schedules. It is necessary to strive to enter into these greatest rollbacks (or adjustments) in order to ensure that you maintain the reserve for value movement and there is confirmation that the price movement will continue in accordance with the changes in the exchange rate. In order to find the best entry point, you must switch to the smallest time frame.
Rules on an entrance
So, you first need to determine the trend direction on the D1 timeframe. For this purpose, the help of moving averages is used. They need to be installed with a period of 22 and 5. In case 22 is above 5, this is the downward trend direction. On the contrary, if 5 over 22 is an upward direction.
Having decided on the trend, we expect the appearance of fractal. The traditional fractal, according to Williams, consists of 5 Japanese candles, with a top in the half. In this case it is necessary to wait for the development of fractal, against the main movement of the course. In other words, if the current direction is downward, it is necessary to wait for the development of fractal from below. On the contrary, if the direction is ascending, we wait for the development of the upper fractal.
At the end of development of the 2nd after fractal candles, mark a horizontal line according to its maximum (if it is a sale of an asset, for purchases - at a minimum), and then we switch to the H4 chart.
On the chart H4 it is necessary to expect breakdown by indicator OsMA zero mark. Besides, the cost of the asset during the breakdown period should be located under the horizontal line. This is necessary to make sure that the direction has not changed in any way and the technical analysis has been carried out correctly. In the case where the cost is at the top, the signal is missed and there is no need to respond to it.
On this you can enter into a deal. However, it should not be forgotten that it is necessary to establish deferred warrants. In this case, it is also necessary to install Sell Stop under the minimum value of the reference candle.
Loss Limitation and Profit Fixing
Naturally, it should not be forgotten about installation of loss stops (limiter for loss) and teak profit (fixator for profit). Here the alternative is able to show its weight. An excellent conclusion will be to set the foot behind the local extremum in the H4, or to a maximum of 5 (control) candles in the D1.
Exit from positions is possible at opposite crossing of OsMA on Н4. When the position is in the positive position, it is possible to turn the stop loss into a break-even state and expect a return crossing of the moving averages in the D1.
Of the additional ways that the "Two Fingers" strategy provides, there are padding in the latest breaks. However, this strategy is designed for long-term retention of fixed positions without significant activity. Typically, the retention time of one position varies between 1 and 3 days (according to the system creator 's studies). If desired, you can increase retention time if there is an explicit trend in the market.
Given that the number of possible graphs and signals is quite large in the "2 finger" strategy, and it is very difficult to monitor them independently, an additional advisor has been developed that provides signals about possible inputs.
For example, consider a situation where an obvious increasing direction is taken into account and an asset purchase is required. On the graph there is a line where the minimum is specified, a new fractal is installed. After that two candles pass and switching to H4 time frame is performed. So further it is necessary to wait for the crossing of the zero value, according to the OsMA and to set the Buy Stop warrant, with the level slightly higher than the maximum of the candle on which the intersection occurred. Stop loss, according to the strategy of "Two Fingers," is displayed slightly under the horizontal line, which corresponds to the nearest local minimum price value.
The weekly trading system is very easy to handle and works perfectly. That is why, despite her recent appearance, she has interested many traders. Especially, this strategy looked to those market players who have little time to bid.