Strategy Open way
A large number of people, hearing about the possibility of making huge profits from trading in the Forex market, throw themselves to computers, install a trading terminal and start trading in currency. The result is achieved quickly, and the result is usually deplorable. Instead of promised bars, a man loses money. The reason for such a sad outcome is that the mountain trader does not know the elementary laws of the currency market.
One of these laws suggests that you can 't start trading without having a tried-out system or, in other words, a free forex strategies that work. Currently, a great many strategies have been developed for trading currency pairs in the Forex market. There are strategies for manual and automated trading. Some are based on fundamental market analysis, while others use technical indicator data. One of the second type of strategy, the Open Path system, tracks the breaking of strong levels on the developing trend.
System indicators and their configuration
A key point of the Open Path strategy is finding a certain level of resistance, the trial of which will mean further movement of the price in the direction of the trend. Three indicators are used to filter signals from the market:
Moving Average, which indicates the direction of the trend. This indicator calculates the average asset price at this time for the selected time interval. For this strategy, it is 200, which should be reflected in its settings in the trading terminal.
Alligator indicator. A tool from Bill Williams 'collection of technical indicators. It helps to determine the stage of trend development. The widely revealed "flock" is indicative of a powerful trend movement. Its settings display the standard values that are offered in the terminal. For "jaws" - period 13 and shift 8, for "teeth" - period 8 and shift 5, for "lips" - period 5, shift 3.
RSI indicator. This oscillator in the Open Path strategy will help filter out false signals. By adjusting this indicator, a period of 5 is selected and levels of 20% and 80% are assigned.
Purchase deals under the Open Path free forex strategies that work.
The first step is to determine the maximum on the uptrend, after which some correction has begun. The breakdown level is determined by the maximum number of bars that reached it during lateral price movement. And only the maximum values of the shadows of Japanese suppositories are taken into account, not the price of their closure. The desired level may be below the previously set last maximum. Further, the following conditions must be met:
The price must be above the Moving Average line.
Alligator must reveal his flock and head up.
RSI should be less than 80%.
When a level sample is made, which is determined by closing the candle 3-5 points above the punching price, a deal is opened at the closing price of this Japanese candle.
The downtrend determines the minimum after which the correction started. The breakdown level is determined by the maximum number of bars that reached it during lateral price movement. Moreover, only the minimum values of the shadows of the suppositories are taken into account, not the price of their closure. The desired level may be higher than the previously set last minimum. The following conditions are then checked:
The price must be below the Moving Average line.
Alligator must reveal his flock and head down.
RSI must be greater than 20%.
When a level sample is made, i.e. the candle closes 3-5 points below the punching price, a deal is opened at the closing price of that candle.
Drawing of warrants
As soon as the trade begins, orders must be issued to limit losses and receive profits. The stop loss is displayed at the minimum level of the punch plug when the long position is opened or at the maximum level of the punch plug when the short position is opened. The following is taken into account: if the value of the warrant is less than 15 points or more than 50 points, it is desirable to skip this transaction. This rule is due to the fact that a small stop loss can work from market noise, and a large stop loss will lead to large financial losses.
Teek-profit on strategy open path is set at the level equal to double the value of stop loss. After the price reaches a level equal to the stop loss value, the deal is translated into a break-even. The strategy is designed to work with cross-courses of Japanese yen: EUR/JPY, GBP/JPY, AUD/JPY. The strategy shows good results on the 1-hour chart.