The Forex Trading Strategy of Follow The Bouncing Pip
I will use MetaTrader to explain the strategy here since it’s the most popular program for trading today. The indicators noted here work on the MT4 platform. A trader will need to copy the indicators to respective “indicators” folder & he will do the same with template files.
For example, Indicators may go to “D:\mt4\experts\indicators” folder and templates go to “D:\mt4\templates”.
The Trading Strategy of Follow The Bouncing Pip
Now, let’s discuss the trading method. This strategy can be used for any currency pair. However, I will take the GBP/USD charts to explain the strategy here. You will find 3 such charts here and you will have to apply the given template to these three. But, first you will set time frame for chart to 4 hours (first chart), 1 hour (2nd chart) and 30 minutes (3rd chart).
We will look for a red-blue arrow for first chart and the same on both 2nd and 3rd charts. When you will see all the three arrows pointing towards the same, you will have to take that direction. You will need to place stop as per your specific risk appetite. If you ask me, I will go for 75 pips for 4 hours & 30 for 1 hour. Your chosen currency pair and risk appetite should be kept in mind while setting the goals. You may trade till you reach the set goal or bounce with arrow.
Now, let me explain an example of buy. Just check out green arrows right on this chart. These arrows constitute the entry or buy signal.
You can see green arrows right on 4hours chart. Now, wait for the same on 1hour chart.
Now, as you can see it on 1hour chart, you have to wait till you find it on the last 30-minute chart.
So, here we can see it and now we can enter (buy).
Now, let’s go for an example of sell.
Can you see a red-colored arrow perched on upper right side of your chart? Again, you have to wait for it to appear in other two charts as well.
So, here we finally have it. We would just need our final arrow to confirm signal & open the trading position.
- #Signal_Bars_v9 .ex4
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