Here's the pattern .
Step#1 Identify a placing D at the XA retracement/extension level of the PRZ.
Step#2 Draw the target levels stretcing fibs from the A to the D and enable -0.382 level to calculate the equal distance between the D and target#1 and the D and stop level.
Step#3 Draw the blue between the D and Stop level.
Step#4 Entry technique: Wait for one of the following reversal patterns to appear inside of the blue rectangle: a) hammer/shooting star b) c) bearish/bullish d) dark cloud cover/piercing patterns. They should appear on the top of a peak or at the bottom of a valley. Avoid the formations within sideways movements. Only enter if the pattern closes inside of the . If it goes below it then wait for price to come back inside of the and form another pattern. As the initial distance from the D to the target 1 equals to the D to the stop level and you enter only beyond the D thus you will ALWAYS have a positive reward to risk ratio.
Step#5 Trade management: Unlike advanced patterns in this strategy no target adjustment is needed. When target one is attained then close half of your position and place the stop of remaining half to the D. Thus you will garantee some profits because your entry was beyond the D.
Step#6 Exit technique: Simply wait for priceaction to hit one of your levels: either stop or target
The strategy is 49,6% accurate this means that small losses will appear pretty often. But when targets are attained they are great thus the equity curve recovers the drawdown pretty fast. To tell the truth none of my strategies gives the same smooth movement of the equity curve.
I entered at the close. Risk/Reward= 1.2
Alexander Nikitin, a professional trader and a programmer.
Yes i am newbie trying to find a way to trade ...