The technique I will describe below is a great opportunity to jump in a trade. The set of rules that I describe can be used as a Forex system. I have heard many names for this technique with the most successful one called the "Pinball Trade".
If you do not know how to design channel lines see Easy Trade Forex video tutorials in trendline analysis chapter.
Forex Technical Trading: Examples
Trade in the direction of the likely reversal. Stop loss orders should be set a little below or above the channel line and Fibonacci retracement level.
Look at the images below as real market trading examples of this system.
More examples:
It is very common for price in Forex to reverse when it has more than one reason to do so. In pinball trade the price reverses because of the channel line with added Fibonacci retracement level. Take good care to design correctly the parallel channel lines. The rest are easy.
Experiment with this technique in Forex charts. At first try to find pinball trades in previous Forex movements. Practice a lot. After getting accustomed to this trade setup you should be ready to apply in your trading. At first recognize a new trend evolving.
Draw the channel lines and take the opportunity to use this trade system. You wont be disappointed!
After all these years of trading and research I have learned and used many trading systems. Now I have found that Fibonacci Patterns is the most profitable Forex trading technique for me.
No comments:
Post a Comment