Trade on daily charts (D1 time frame) attracts many traders. Such strategies require a minimum of attention and is quite effective, because the impact of spread on the minimum and reduces the likelihood of problems due to market "noise."
Strategy Ruler is a long - term method of trading on Forex, which can be applied on any currency pair. Deals one pair will come out a little bit, but at the same time you can analyze, for example, a dozen assets.
You can use different methods of marking graphics, for example, to determine the levels visually, or use one of the popular methods (Fibonacci, Murrey lines). Below I will give an example of the markup based on conventional visual analysis.
Strategy Ruler: trading rules
Placed on the D1 chart EUR/USD currency pair two MA periods 10 and 200, and determine the levels of support and resistance. It is desirable to take as levels in certain ranges, for example, a width of 10-20 points:
All transactions will be concluded only in the direction of the tilt МА200, and all other signals are ignored. We will trade for a bounce as follows:
• all the sell signals are ignored because МА200 directed upwards;
• wait, when the price gets close to one of the levels (on the chart below, the level of support held through the point 1);
• signal for the deal will end up closing daily candle above МА10 (point 3 in position to buy).
Level 4 is the resistance, which is what we will need. The fact is that when the market price of the level half of the volume of transactions closed. The second half is fixed, when the next daily candle will close under МА10. In the example, we consider the second part of the agreement will bring less profit than the first, closed at 4.
In fact, not infrequently it turns out the opposite situation, when the market has a strong trend, which does not allow the candle to close under МА10. Thus, we get the mechanism of partial closure of transactions where each position has two points of exit.
Many of the policies on the rebound the weak point is the conclusion of a transaction when you touch the market price level. In the strategy of the Ruler, this drawback is eliminated, because the position will be opened only when the price and closing daily candle above МА10. This filter allows you to protect against situations when a bounce did not happen at all, and the price on the contrary, breaking through the level, went even further.
The figure above clearly shows that the market has reached a support level for some time and bounced back up. However, the agreement we concluded, as no candle closes above МА10. The price continued to decline, to reverse a long trend, but we will not get the loss, as the potential deal has been filtered.
The location of the stop loss probably comes as no surprise, as according to the strategy rules type of order is placed at the price level, which was the end. It turns out that in our example the stop loss is placed under point 2:
Stop loss will be brought down only if after the price drop to the support level and further upside reversal the market will again begin to decline, and stronger than in previous times. However, if you work only in the direction МА200, the number of losing trades will be minimal.
Trading strategy Ruler on the Forex market is a high-quality technique intended for long-term trades. Very to the point here the filter at the entrance to the market, and successfully implemented the division of the purpose of the agreement two abroad. To work on this strategy the trader does not need a lot of free time because all actions occur only at the closing of the next daily candle.
