15.7 C
New York
Monday, September 20, 2021

Forex Trading Guide 2021: Outside Method Strategy

 FOREX Strategy “Outside Method”

1. The indicator in question is EMA (exponential moving average) with an averaging period of 9.

2. Used timeframe – М15 (15-minute price chart)

3. Currency pair – GBP / USD

To open a trading position, look at Japanese candlesticks and their location relative to the EMA (9):

• The body and shadows of the candlestick do not touch the EMA (9);

• The best option – the upper or lower shadow of the candlestick is at a distance of more than 1 point from the EMA (9);

• The candlestick should close above the previous high in a bullish trend or below in a downtrend.

Position opening rules:

In an uptrend, we open a buy deal at the opening of the next candle, and in a downtrend, we open a sell deal also at the opening of the next candle.

Position closing rules:

• Immediately set stop loss and take profit after opening a trade.

• Limiting losses set at the Low (uptrend in the market) or High (downward trend in the market) of the previous candlestick.

• An order to take profit is placed at a distance equal to the height of the previous Japanese candlestick.

• If the price has gone sharply in your direction and you have a profit of 20 points or more, then we move the position to breakeven (taking into account the spread).

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.