by DeltaSR: This forex strategy is based on single observation. If you try to trade market reversal based on DeM signal incorrectly you will get ruined very quickly ! But once you find strategy that is being able to ruin any account quickly, you are actually lucky. You just need to reverse the rules and apply them in new trading system.
This forex strategy is a momentum system that doesn't try to identify a trend, instead it focuses solely on DeM identified momentum. After DEM rises to overbought/oversold zone we wait for correction. This strategy is based on absolute catastrophic system that my brother ..developed,, when I first introduced him to forex. However, it is completely reversed.
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.
Used forex indicators
DeMarker (21). Just place it in the 15 min chart of any major currency pair. Add 0,5 line into the indicators window. It will help us with stop loss.
Fractals: Will help us with position timing and stop loss.
Forex strategy rules
SELL
DeM falls below 0,3 line into oversold zone. We wait for closing of a bullish fractal, marking the correction upwards at the bottom.
We enter the trade short once the fractal closes.
Take profit: The base of a signal fractal.
Stop loss: Price at the moment when DeM crossed 0,5 line downwards.
BUY
DeM rises above 0,7 line into overbought zone. We wait for closing of a bearish fractal, marking the correction downwards at the top.
We enter the trade long once the fractal closes.
Take profit: The base of a signal fractal.
Stop loss: Price at the moment when DeM crossed 0,5 line upwards.
Notes: enter only first signal of the overbought/ oversold zone. To take next trade wait for DeM to reach opposite zone.
