Hello again, dear blog readers, and lovers of trading! And we have today is in fact day accurate Forex strategy called Phanti. Personally, I always like had a trading system, comprising the minimum number of indicators.
In my opinion, the indicators are once again interfere to correctly assess the situation on the market. Roughly speaking, the novice trader blindly operates the indicator, and thus does not understand what processes are currently happening in the market.
No, I don’t want to say that indicators are bad and not needed. However, if You just blindly trust the indicators and to understand what is happening in the market, it is unlikely that You will consistently earn.
The system, about which we will talk today, is extremely simple in all respects. Its trading rules are clear even to the beginner, plus uses a minimum of indicators. Accordingly, people learn how to correctly analyze the situation on the market.
Understand for a novice trader is very important primary to understand how the market operates and what laws he lives. Understand correctly, there is no such indicator which will constantly give You an unmistakable point of entry.
Will tell You so, in secret… many experienced traders that I know, in General, trade without all the indicators. They are guided only by price movement, and do it successfully! I have many friends who consistently make without indicators.
Again, there is nothing wrong with indicators, but they serve as assistants – no more than Your head – that’s the Holy Grail. What I like specifically the system that he makes a huge emphasis on the price movement and indicators only confirm a particular trend.
Description of the system and tools
This trading system we use the interval M15, and down below I do not recommend. This is because we consider on the price chart the candle formation of Pin bar (hammer classic candlestick analysis).
Of course, to consider the candlestick combination at such a low interval is not quite appropriate, as they work only on the timeframe of H1 and above. However, we use as confirmation indicators.
Therefore, it is a opportunity to trade by candlestick combinations and at such a low interval! The most important thing is to wait for when the indicators confirm the current direction of our deal!
Regarding the choice of a suitable underlying assets, there is generally no limitations. You can choose the currency pair that fits You specifically. Of course, I recommend to focus on the main couple, especially the beginners.
Remarkable is the facts that are presented accurate Phanti Forex strategy works equally well as trende, and in flat. Roughly speaking, there are systems that work well in trend, but flat, nothing good comes out. The presented strategy is an exception to this rule.
It is truly universal and apply in any conditions of market. Before proceeding to the consideration of the trade examples, let us talk a little bit about what is a pin bar.
This is a strong reversal pattern that is characterized by small body and long tail. Example:
Here You can see that there is a candle that has a long tail and small body – it is the same pin bar, which we need. However, remember that is important to us not even the very existence of the pattern, and the place where it is formed!
That is, strong we can consider the setup that is visually fully formed and has a support, for example, at a strong price level! The pin bar is a strong reversal finished, showing us a possible trend change.
Of course, if you prefer, You can add new patterns, however, the pin bar fulfills most well behaved, plus, don’t forget that we use a low interval, therefore not all patterns can be practiced as well!
In any case, if we find the clearest signals, the mathematical advantage will always be on our side! Plus, I want to note one important detail – try to take trades in the direction of the dominant trend.
If You suddenly decided to go against the trend on corrections, it is not necessary to pursue major goals, as is likely, You will not reach.
The above examples
The indicators included in the system:
- Pivot Indicator. Automatically deals a graph of potential levels, from which we will directly enter the market.
- Pattern pin bar. As mentioned earlier, this pattern is a candle which has a long tail and a small body. In this case it is important to see that setup had a clear bearing on the level of the pivot.
- The relative strength index. Performs the role of a certain filter, and confirms the current entry into the transaction.
Now is the time to consider the examples. To open the deal to buy you must wait to form the pin bar one of the levels, the shadow of the setup should be facing down.
Then we look at RSI, and to confirm the transaction it needs to be geared up! As for sales, we need to wait for opposite conditions, and thus the shadow of the pin bar should be facing up.
Here we see that we have a pin bar with a clear support level, and his shadow is pointing up. While the RSI confirms the current transaction, moreover, the signal is very strong, as the relative strength index further indicates a potential oversold!
As You can see, this trading system is incredibly simple, but very effective! The only thing I can add, I still would recommend You to use the levels that You apply by hand!
If You are a beginner trader, then the first couple, you can use the pivot indicator, but over time you need to switch to manual to applied levels of support and resistance.
That’s all, dear visitors! We hope this information was useful to You, and You will be able to benefit!