The rules to this strategy are posted on the chart.
If you have any questions on this strategy or our other free strategies send me a PM.
I was asked if this strategy would work for a short trade - Yes, just make the rules opposite for a short trade. 1st swing high in 50 bars - look for rsi above 80 - wait for new swing high - on first swing high place a horizontal ray on the low of that candle for short breakout level and sell stop.
HI, Shouldnt your risk reward start at your buy in price not the new swing low. The way you have done it, you aren't getting a 3:1 risk reward, in some cases (if your entry is high up) you might be getting less than 1:1.
@cb247, I personally scan my charts (pairs and time frames) and what I am looking for is a swing low with a previous fractal low just to its left. I don't always look for 50 candles. That way I can scan very quickly and after I find a pair then I look for other confirmation signals for the trade.
@PCHamamas, You may be right. But how I use it is as I visually scan my pair on different time frames I am looking for current patterns of a swing low/high with a new swing low/high with a rsi below/above 20/80 levels. I can visually scan for it quickly on my pair and quickly change my time frames. If you trade different markets or pairs it is a quick visual scan search. It is just another arrow in your quiver as you search and analysis the markets.