Forex layered-entry strategy
This has to be your mentality if you ever wish to become a consistently profitable Forex trader. Pyramid trading fits perfectly into this mentality because it compounds your winning trades into two or three times the initial profit potential while reducing your overall exposure. In fact, you are actually mitigating your risk as the trade moves in your direction. The illustration below shows the basic idea behind pyramiding.
Market conditions such as this are ideal for scaling into a winning trade. The initial buy order in the illustration above is triggered when the market retests former resistance as new support. The second and third buy orders are similar to the first, which are both triggered when the market retests a former resistance level as new support. Keep in mind that the market has to break through each level and then show signs of holding in order to justify adding to the original position.
This is why having a strong trend in place is a requirement for effective pyramiding. Forex Pyramid Strategy: How to Double or Even Triple Your Trading Profits The key to successful pyramiding is to always maintain a proper risk to reward ratio , which says that your risk can never be greater than half the potential reward. So if your profit target is pips, your stop loss must be no greater than pips.
The profit target for each position is varied, while the stop loss for each new position is pips. At this point you have built up a fairly large position size of , units at risk. Or is it? The total position size is in fact , units, but how much of that is actually at risk? This is where the real magic happens. Notice how the profit potential for each additional position is compounded throughout the trade, while the risk is continually mitigated.
However, by pyramiding, we were able to double the profit on the same trade while reducing our overall exposure. This makes pyramid trading not only extremely profitable but vastly more favorable compared to most other trading strategies out there.
Conclusion Pyramid trading can be an extremely advantageous way to compound your profits on a winning trade. Enter a trade when the signal candlestick closes. I recommend setting a stop loss at a distance of points in four-digit quote. A take profit is points. The arrow points to the signal candlestick where Trend Envelopes colours change.
Note purple ovals that the blue line is below the orange and is moving otherwise the signal should be ignored. At the signal candlestick, the green line of the DSS of momentum is above the dotted line. Conditions to open a short position: The price breaks the blue line of Trend Envelopes downside.
At the same candlestick, the rising blue line changes into the falling orange line. The candlestick is below LWMA. When the previous condition is met, expect a candlestick to appear below the moving average. It must close under the red line of LWMA.
There must orange line of Trend Envelopes at the signal candlestick. The DSS of momentum additional line should be orange at the signal candlestick. It should be located below the signal dotted line that is, it is breaking through it or has already broken. The below screen displays a candlestick that closed at the level of MA the red line , almost fully below the line. The below screen shows that the DSS is below its signal line at the signal candlestick.
Besides, the blue line is flat, not rising. Signals are relatively rare, you can wait for one signal for a few days. Do not trade when the market is flat. Test this strategy directly in the browser and assess the performance. It is based on the springy action of the price — if the price rose quickly, it should fall sooner or later. We can use a chart in any terminal and a timeframe W1 although you can also use a daily timeframe. You should analyze the size of the candlestick body of different currency pairs.
Next, choose the pair with the longest distance between the opening and closing prices within the week. You will enter a trade on this pair at the beginning of the next week. Conditions to open a long trade: The bear candlestick, indicating the price action for the previous week, has a relatively big body.
You enter a long trade at the beginning of the next week. You should set a stop loss at a distance of points and a take profit - at points. In the middle of the week, exit the trade. It may be closed with a take profit or a stop loss. Then, again expect the beginning of the week and place a new order.
Do not place orders at the end of the week. It is clear from the chart that, following each bearish candlestick, there is always a bullish one although it smaller. The matter is that what period you should take to compare the relative length of candlesticks. It is individual for each currency pair. Note that some small bear candlesticks were followed by rising candlesticks. The relatively small fall, occurred in the previous week, may continue. Conditions to open a short position: The bullish candlestick, indicating the action during the previous week, has a relatively big body.
Open a short position at the beginning of the next week. Red arrows point to the candlesticks that had large bodies relative to the previous bullish candlesticks. All signals were profitable except for the trade that is marked with a blue trade.
The disadvantages of the strategy are rare signals, although the percentage of profit is quite high. And you can launch the strategy trading multiple currency pairs. This strategy has an interesting modification based on similar logic. Investors, day traders, working with a trading volume prefer intraday strategies.
They do not have enough money to make a strong influence on the market. So, if there is a strong market action in the weekly chart, this signal the pressure made by big traders. Differently put, if there are three weekly candlesticks in the same direction, the fourth candlestick should be in this direction too. The psychological factor is also important here.
Those, who have been pushing the market in one direction, should start taking the profit in a month. It is good if the next following candlestick is bigger than the previous one. Doji candlesticks candlesticks without bodies are not taken into account. A stop loss is set at the close level of the first candlestick in the sequence. An example of such trade setups is in the screenshot below. It can take 2 or 3 months. But if you launch the strategy on multiple currency pairs, this term of expectation is justified.
Take swaps into account! This is a trend strategy. Most sources suggest using it in different timeframes, including minute ones, but market noise lowers its efficiency in very short timeframes. Indicators used: EMA with periods 5, 25, and Apply to — close closing prices. Parabolic SAR. Leave the default parameters you can only adjust the colour if you want. Parabolic SAR is below the candlesticks.
Parabolic SAR is above the candlesticks. You can enter the trade at the same candlestick when the moving averages have crossed. A stop loss is set close to the local low, take profit is points. But if you manage trades manually, you can make a bigger profit. It indicates a change in the slope from a rise to a flat. It is clear from this screenshot that all the three signals two longs and one short yielded profit.
One could have entered the trade at the next candlestick. It is after the signal one to be sure in the trend direction. However, a good entry point would have been missed. It is up to you whether to risk or not. These parameters will hardly work for hourly timeframes. Well, you are familiar with the theory now. I want to briefly describe how to launch these strategies in real trading. Are you ready? From theory to practice Step 1. Open a demo account. It is free, you do not have to top up the deposit.
On the website home page, there is the Registration button. Click on it and follow the instructions. You can also open an account in other menus. For example, in the upper menu, trading conditions for an account, and so on. Step 2. Study the functions of the trader profile.
It has a user-friendly, intuitive interface. You need to study the instruments on the platform and find out how to make a trade. The trader profile is described in this overview. Step 3. Open trading platform.
Download the template just in case, I give the link again.

BETTING ON THE OPEN
Currency pairs any. Metatrader 4 indicators Forex Entry System default setting. Gliding Channel. Symbol Changer. In the pictures Forex Entry System in action. Forex System Entry. Forex System Entry- looks the next picture for entry. Here we analyze the direction for confirm the forecast of Gann Angle. Forex Entry System. Comments: 2. Submit by Forexstrategiesresources. Entry Rules. Time Frames and Currency Pairs. Submit by JanusTrader. Long Entry. Enter a LONG position when all following conditions are met.
Zeus Support and Resistance Strategy is a trading system born in a telegram group for fans of Binary Options. There was no real signal for me to enter. And I prefer not to chase a price move. But then I missed this one. This one did provide a setup. And I attempted entry, only to miss.
Naturally, this one was followed by a…. Market Open Traps are by far my favourite opening play right now. I've demonstrated these quite a bit over the last year or two. Sorry for the repetition — but they're just working so well lately. Not always for massive profits. The two shown today are definitely singles, rather than home runs. Top of the mountain: At the top of the mountain a trader is very lonely, as he is the only one thinking that price could go down, whereas the majority of the traders are in the valley thinking how far can the price go up.
Nobody knows yet where the peak of the mountain price will be but the early entry trader makes a decision and goes for a certain level. If all goes well, his entry is right at the peak. A third away from top: The confirmation entry is about a third away from the top. These traders have been price hit the top and move down away from it and are trying to ride the trade back down to the valley.
Close to Valley: Momentum traders are waiting for the price to move down lower and pick up speed when the price is rolling down the slopes. It jumps on board when the price has a good speed and angle and is trying to catch the last but fast roll down into the valley, after which prices bottom out and due to its velocity rolls out and up the next hill retracement.
Regardless of your trading strategy, you should only take a trade entry if it passes this 3-step test: Does it meet your requirements for entering a trade? Do you trade from an area of value? Do you trade in the direction of the trend or against it?
What are entries in forex? A forex entry point is a price at which a trader buys or sells a currency pair. There are various entry techniques used in forex trading which includes breakout entries, support and resistance entries, overbought and oversold entries, divergence entries, etc. How are entry and exit points calculated? When it comes to entering and exiting the market, price action and technical analysis are the most common tools used by traders to help them time the market.
What is the entry price? The entry price represents the price at which traders buy and sell securities. The better your entries are, the bigger the potential profit is. For short-term traders, the entry price is more critical than for long-term traders. How do you enter and exit in day trading? Day trading requires entering and exiting a position within the same trading day.
To enter and exit the market, day traders will use charts and technical analysis to identify buy and sell trading signals. Conclusion: Entry Methods In any case, whatever entry method you decide to use, it is always important to plan the trade ahead and wait for those market circumstances to emerge.
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