HOLY GRAIL - myth or reality?
The concept of traders "Holy Grail" - the system of trading in the Forex market, which, roughly speaking, is "working" under the laws of the market movement, which can only accurate to adjust to market movements, which can predict its future direction, and accordingly on this basis, a system which provides a constant gain and which excludes incidental damages, even!
Obsession search of trade in the forex market, which would exactly meet all the requirements that relate to the concept of the "holy grail" haunted several generations of traders, as it does not leave without thinking about it and the current generation of traders.
Strictly speaking, this is a concept and lead to progress in the formulation, revision and improvement of mechanical trading systems (MTS) and automated trading systems (ATS) in the international currency market FOREX!
Who knows, you may be right for you, dear reader, and destined to the honor of finding the "holy grail" and destroy the very notion of Forex and all that it includes a ...
And at the moment, I propose to consider from the perspective of the system related to the concept of the "holy grail" is such that can operate in any market at any given time, that is, which, although far from perfect, but many of its parameters and quality meet the requirements of to the "Holy Grail".
Here for example one such system ...
Its operating principle is based on the indicator ADX (Average Directional Index, the index averaged direction) Welles Wilder, this strategy works in any market in any time frame.
First of all, you should review the working principle of the indicator ADX.
Simply put, ADX measures the strength of the trend in a certain period of time. The stronger trend in either direction, the higher the ADX. (If you want more information about the construction and interpretation of the ADX, recommend It was developed and described in detail in his book "New Concepts in Technical Trading Systems" by Welles Wilder.
When prices in a strong trend making new highs (lows), you should always buy (sell) at the first reaction.
This is a fairly accurate method used to determine the opening position after recovery.
Opening this transaction, we look forward to continuing the previous trend.
Usually follows one of two results.
Re-test may fail in the previous high / low - in this case can usually be made small, but still a profit.
In the second scenario will begin a new stage to continue the trend.
In the worst case, the entry point with a very low risk and a few embodiments of the output.
The indicators used and their settings:
Moving Average (MA) - 20-day RSI, Exponential, to close
The indicators used and their settings:
Moving ) – 20-ти периодная, экспоненциальная, на закрытие Average (MA) - 20-day RSI, Exponential, to close
Average Directional Index (ADX) - 14-day, closing with a level of 30
Terms and Conditions for purchase (conditions for the sale of the other way around):
- 14-periodic ADX must be greater than 30 and continue to rise.
It identifies the market with a strong trend.
- Look for the recovery rates of up to 20-periodic exponential moving average (Moving Average, MA).
- Usually accompanied by falling prices of recovery ADX.
- When the price touches the 20-pernodichnoy exponential moving average, put a stop buying above the previous bar.
- After his performance of the security stop selling to the newly formed swing low.
- Tighten stop the accumulation of profits and get out at a maximum samoyu the swing.
- If you think that the market may continue its movement can be closed at the peak of the last swing of the position and just bring the foot to rest.
- If the transaction is aborted protective stop, open it again, putting new
- Stop buying on the original entry price.
- After a successful transaction ADX should again rise above 30, before it can be
- Sell to others to restore the moving average.
PLEASE NOTE: Many traders incorrectly believe that the decrease in ADX
indicates a trend reversal. This is rarely true.
ADX usually reaches a peak when the starting price consolidation. This scheme is easy to find.
Do not be lazy, take the time to self-study and study graphs of the scheme.
Probably soon you'll understand why this system can try to call the "Holy Grail"!
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Grail - it is reality! The question is how to represent the people themselves. For me, this is 1000% accurate levels of resistance rates. Ascending and descending. Hint - voshodyaschii parallel, parallel downward, horizontal, no!