The strategy is based on working with pin bars. Why the “Pin” bar?
We all remember the tale of a boy who every time he spoke untruth, his nose grew. Pin is the abbreviation on behalf of Pinocchio.
Dzhankone Trading System Features
A long nose, a shadow or a tail shows us that the price is deceiving us. Pin is stretched up, which means that the price is deceiving, that she will go up, she could not fix herself there and fell. The strength of the bears in this situation was greater. When trading pin bars, it is very important that the price returned to the previous bar and closed there. The previous bar must not exceed the limits of the pin. Very good pins work when they break through their noses with important levels of support or resistance. An ideal pin must have a large nose and a small body.
Pins should be on the top, or hollow, not in the middle of the price range.
1. Choose a timeframe – 5 minutes (M5).
2. Install RSI-6, used for divergence.
3. We set Bolinger Bands – 18/2, we use to determine the trend. Still it is possible to trade from its borders at lateral movement and at presence of a pin.
4. Set Simple Moving Average (SMA) 50 and Exponential Moving Average (EMA) 21 – to determine the trend.
The level of take profit is 15 points.
The best currency pairs for work on this strategy are pairs EUR / USD, EUR / JPY, GBP / USD, USD / JPY.
The forex strategy “Dzhankone Trading System for 5 minutes” consists of 2 simple signals. It should always be remembered that the best deals on forex are deals on a trend.
1. The first trading signal is a pin bar in itself and the presence of a trend. If there is a divergence, then this is still the best option for concluding a deal.
2. The forex trading signal against the trend is counter trend.
For the signal it is necessary: pin bar, divergence. Profit is best displayed on the 21st moving average.
Take profit is 15-20 points, a good target is 21 moving average. As for the stop, it is 5 – 10 points from the pin bar. Or behind the line of support, resistance. Nobody forbids the use of trailing stops in the strategy of Jankone.
Pin bars can be signals by themselves, IF they break through:
1) Fibonacci levels;
2) Levels of pivot (Pivot Points);
Remember that you do not need to conclude a transaction if your profit-loss ratio is less than 1: 1, and even BETTER 2: 1.
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