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Trade
Jarroo method to trade in the foreign exchange market
Trading Price Action method are being actively discussed on many forums, but often considered quite difficult for beginners, because there have to process a large amount of knowledge. Therefore, on its basis was developed and successfully applied simplified versions, but almost no lost of efficiency, for example, the method Jarroo.
One of the advantages Jarroo have a job on the daily time frame, due to which virtually eliminated false signals that often appear within the day. Time technical analysis the minimum, and the use of any indicators is not necessary, although in some cases it can help to more accurately find the entry point into the market.
Features of the method Jarroo
In contrast to the classical scheme of determining points of entrance or exit from the system Price Action method Jarroo uses the simplified method of finding levels and points of opening/closing orders. That is why it is recommended for those traders who are "full" version seemed too complicated, but interest in the system still persists.
This trading system can be applied on almost all currency pairs in the D1 timeframe. Identifying key levels in the method called Jarroo as follows:
• visually define the local minima and maxima (turning points);
• marked those where you have at least 2 candles with the same level of opening or closing.
Hold the line levels should be the prices of opening/closing, and if they are not explicitly visible, it is not necessary to consider such parts of the graph is accurate. The key points are determined without any indicators, otherwise we have to admit that the market is the unstable situation and open a trade you should wait.
In the method Jarroo uses the itemthat represents the main points:
• LCS (Lowest Close of Support) is a support level below which the price could not fixate.
• HCR (Highest Close of Resistance) is a resistance level above which the price failed to break.
• PBT&CA (Price Breaks Through & Closes Above) – breakdown of the resistance level.
• PBT&CB (Price Breaks Through & Closes Below) – breakdown of the support level.
These concepts and established principles of open orders, that is, in fact, the system is based on levels of support and resistance.
Trade Jarroo method
Trading rules for this method is quite simple, there is not any need to use additional indicators to look for candle patterns and apply other tools of technical analysis. Enter the market when the conditions described below.
Signal is formed PBT&CA, that is the last candle closed above the HCR level (resistance level). Need to set a pending Buy order at the level of HCR, but you need to consider the size of the spread and that the price most likely will first fall back to the level for testing, and only then will go to next resistance (use limit orders). The purpose of the profit – the choice of the trader, the stop the low of the candle that broke resistance.
Signal is formed PBT&CB, that is the last candle closed below the LCS. In this case, you need to set a Sell Limit at the level of LCS based on the spread. And here it is necessary to consider the peculiarity of a return to this level before continuing the growth of the daily candle down. The goal is to choose the trader, it is better to put a stop to the high of the candlestick that broke the support.
Given the large distance to the LCS and HCR, traders often use trailing profit so when the price comes earlier than the time to achieve them to fix the received profit. You can move the SL manually, first by placing it at point of order opening, and then moving behind the growth of profit, using as points of intermediate level are also visible on the chart.
With the exception of the entrance to the market may be pulsed breakdown, which occurs in the moment of publishing important economic news. Such breakthroughs are often incorrect, and the price may soon go back into the previous range, bringing the trader only loss. These points are clearly visible, because the daily candle is very long and rates of closure are far away from the LCS and HCR levels.
Is the norm to choose the lot size so that he gave load depot no more than 5%. This approach allows you to make trading a fairly safe and even to keep an open mind despite the start of the next day and open a new order.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 285
| Rating: 0.0/0 |
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