Lot of traders, reading this forex strategy will think that it is only possible to bet on price moving either up or down. This might be a paradigm shift for you. Actually, third bet you can make in this extremely volatile market is, that it will move !
How do you bet on movement itself? Let's look at this ultra aggressive forex strategy.
Forex strategy rules.
Used currency pairs EURUSD, USDJPY – this is only a matter of spread.
Make sure your broker is ECN/STP with total costs for transaction under 0,8 pips (spread + commission).
We plot volumes forex indicator in the chart, this will be the only indicator we will need and use.
We will be looking for high candle volume in 1 hour timeframe, coupled with extremely narrow candle (comparred to volume).
Candle should be flat between 8 – 15 pips. With volume highly above average.
We place pending buy order at candle high and pending sell order at candle low, with take profit that equals candle range. We exit position at loss once the price reaches opposite side of our candle range.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Two things may happen:
Position moves to profit and we move on to another candle.
Position moves to loss (opposite end of the candle).
We exit previous position at loss. We manually enter the trade to the breakout direction (opposing previous position) with double the size of previous order.
IT is possible that there will be more fakeouts from the range.
We will double our order size up to 16x of our initial order. Once the first 16x position moves to loss. We continue doubling the range of take profit (not loss).