There are multiple stages to this strategy. Source: USD/JPY,1-minute chart, Admiral Markets. For the advanced strategy, a 1-minute chart is used instead of a 15-minute chart. Our overall goal is to trade in the direction of the dominant trend.
Keep risk to less than 1 of your account value on each trade. We wont be right all the time, but since our profit potential is greater than our risk we dont have. You could also use a moving average or some other indicator as a trailing stop loss. If the price rallies above the consolidation, there is no trade since the initial move was down. Place a stop loss one pip below the most recent low if long, or one pip above (plus the spread ) the most recent high if going short. Reversal of Initial Move Sometimes the price doesnt keep going in the direction of the initial move. Eurusd NFP Forex Strategy with Trend Reversal 1-Minute Chart Click to enlarge Wait for the actual trade signal to occur.
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Bill lipschutz forex strategy