Forex Range Strategy
Forex Trading Strategies – The simple strategy of 4 hours law
This article gives a brief explanation of one of my favorite trading strategies currency. It is simple and extremely effective. All it means is a plot of 1 hour bar and watch the price action on the GBP / USD. I refer to as the "4 hours Strategy law. "
These are the steps:
1. Opens 1 hour chart bar for GBP / USD.
2. Wait for the GBP / USD has shown "Narrow-range consolidation" at least 4 consecutive hours. For "narrow-range consolidation" I mean the range is well defined, usually no more than 50 (preferably) to 70 pips in the range (bars are very short in the hourly chart.) You do not have to wait and see on the computer all the time. You can check in every few hours to see if a system may be coming up.
3. By identifying four hours back to the back of tight consolidation, to continue to monitor the GBP / USD more closely as they will be watching for a break in the range of consolidation.
4. If the price rises by 7 pips above the upper price range, then go LONG. Alternatively, if the price moves 7 pips below the lowest range, then exposed. Do not forget to adjust for propagation. So if its spread is 2 pips, for example, that used 9 pips above or below the end to make your entry.
5. Adjust the stop loss at 30 pips. Set profit taking 70 pips.
The GBP / USD is known as a currency pair very active. The development does not happen every day, but it happens in many days. The best time to find four hours of tight consolidation is during the late U.S. or during the Asian session.
I highly recommend you demo trade this strategy for a while. Go try it in his letters if you wish. You probably agree this easy strategy really works!
About the Author
Have you discovered the forex strategies that are best for you? The “4 Hour Sterling” strategy is a variation of one of Avi Frister’s price action based forex strategies. Get more information on this strategy at Ann Pevey’s site FX Strategy Hub. You will also find more simple forex strategies and Ann’s actual “real-time” trading results!
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