Forex strategy “Chariot Technique” has proven itself well in conditions of constant upward price movement in one direction, but with frequent strong corrective downward movements.
Basic trading rules:
1. Open only long positions when the price has consolidated above the simple moving average (SMA 40).
2. Short positions are not executed here; no sales.
3. Trades are not opened when a flat is formed, as well as when the price fluctuates around the average.
4. A buy is made only when the first candlestick completely goes beyond the moving average and then closes at the top of the range.
The chart below shows examples of trading using this system:
Stop – loss is recommended to be placed below the minimum of the candlestick preceding the entry candlestick.
Set take – profit or trailing stop if you want. Can be rearranged to zero and closed in parts as the price moves.
Additional indicators, for example, ADX, can be used to confirm the input signal.