Price Action Strategy
This strategy will be one of the simplest strategies you have ever studied BUT adopting it might be not be an easy task. So before you adopt it, you may need to practice it on a demo first.
Here are the rules
1- Do NOT use any indicator.
2- Start with short timeframe (i.e 30 min or even lower) because you will find more trade opportunities at lower timeframe.
3- Zoom out chart.
4- Look at historical patterns using candlestick chart.
5- Look for long tail candles as shown in image.
6- Enter immediately after candle closes leaving a long tail. SL will be the price at end of tail.
7- There will be no TP. As soon as you see another opportunity enter again even if this opportunity is in opposite direction
8- Use trailing SL once price goes significantly above entry price else keep entering trades where ever you find opportunities. In this way you wont need any trailing SL because you will have already hedged most of the positions.
That is all. There can be some points that I missed so you are free to ask anything and I will answer it.
If there is no TP, how would u end up winning? Only a rare number would go significantly up or down and all other trades will end in loss. There must be a target TP.
I have seen similar long tail strategies and they look really good on past data. But when we try to implement on live account, there are so many tails that we cannot really implement it effectively. It is not for beginners. It requires a lot of practice in order to filter false tails.
I never try to find short cuts, as I believe there is no real hope in it. I feel its far better and beneficial that we don’t use any random system instead we should try working out things on our own. This is exactly what I do with help of OctaFX broker and with their magnificent set of features that counts for tidy spreads, fast execution, rebate scheme where we get back up to 50% and much more, it’s all amazing in helping us out.