Today I would like to show you a very easy pattern for making money on the movement of the exchange rate - entry after a price rollback.
4C with a period of 8, 100.
The essence of the idea: the search for entry points after the impulse, at the end of the price rollback.
This idea is very simple to understand: you need to wait for a strong impulse up or down, then wait until the end of the price rollback, and enter in the direction of the previous impulse.
Rules for entry into position:
We buy if:
4C was green for more than 9 bars (impulse up);
4C draws red histograms of more than 6 bars (case 1);
After that we draw a resistance line at closing prices (see line chart).
We enter into purchases on the breakdown of the resistance line (Case 2).
We sell if:
4C was red for more than 9 bars (impulse down);
4C draws green histograms greater than 6 bars (case 1);
After this, we draw a support line at closing prices (see line chart);
We enter sales on the breakdown of the support line (Case 2).
The exit from the transaction can be at a fixed profit, or use a trailing stop.