Forex Trading System | Bounce Back Strategy

Added: 2011-09-09 13:33:25 by Dexter

3.46/5 (210 votes)

Learn to trade Forex using Bounce Back Strategy

This strategy can be used as a scalping method as well as for long term trades. It uses 24 ema to look for bouncing back of the price and enter the market with a buy limit order. It is not 100% accurate but it has consistently been profitable and anyone can adapt the strategy to his or her preference.

Details

Categories: Technical, Trend Following, Price Action

Timeframes: 1 Hour

Currency pairs: ANY

Trading sessions: ANY

Indicators used

Moving Average

Entry rules

Vice versa, when price is above 24 ema at a minimum of 20 pips, and price starts to travel towards 24 ema, which means price is falling towards 24ema, set a buy limit at 24 ema with anticipation that there will be a bounce back up. When price is below 24 ema at a minimum of 20 pips, and price starts to travel towards 24 ema, which means price is rising towards 24ema, set a sell limit at 24 ema with anticipation that there will be a bounce back down.

Trade management

The take profit is 10 pips and the closing of the trade are described in the following exit rules.

Exit rules

We close the buy trade when the price close below the 24 ema, then the price open and close below the 24 ema or the trade will exits by itself when we set the take profit to 10 pips as shown in the following picture.

Advantages

As it uses bouncing back of the price, the trade was able to enter at a good price during the trending market.

Disadvantages

This strategy may not work when there is a trend reversal and the trade will have to close at a loss.

Metatrader 4 chart template files

Comments

Submitted by Guest on 2012-02-26 14:16:43

This is a great, easy system, but you must be patient.

Submitted by Guest on 2012-03-07 18:30:52

You don't allow comments, so why bother with this?

Latest Systems

Categories

Popular searches

Forex trading system "Bounce Back Strategy"