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Trend Signal

The trend signal is one of the most known strategies that can be easily understood by beginners. With this strategy, you will be identifying candlesticks that will signify a return to a previous trend resulting from a correction. Using this strategy is ideal for contracts that have a minimum expiry period of 15 minutes and the longer the expiration, the more accurate data you will get. You can use this strategy for almost any kind of asset and this includes stocks, currencies, commodities and indices.

With this strategy, you will be getting a signal to purchase a High, Call or Up option once a long upward trend has been recognized and a downward trend subsequently happens. Evidently the trend will be showing three bearish candlesticks and a long bullish candlestick. A signal to purchase Low, Put or Down on the other hand happens when the long downward trend suddenly shifts to an upward trend. This will be labeled with three bullish sticks and a long bearish candlestick.

The graph below is an example of an uptrend and a subsequent correction. This shows a long corrective bullish candlestick with three preceding bearish candlesticks.

Tunnel

With the tunnel strategy, the objective is to identify a disruption or break in the tunnel. This is only effective for options which are expiring 4 hours or longer and is applicable to almost any kind of asset and this includes stocks, currencies, commodities and indices.

It is the outcome of a uniform trend resulting from ups and downs forming the two lines that form the tunnel. It is normal for the graph to stay out of the tunnel from time to time but when it reaches 30 pips then a break is identified and a signal is created. If the tunnel is going up and broken when it goes down then a Low, Put or Down purchase is recommended. On the other hand, a High, Call or Up option is suggested if the tunnel shows a downward trend and broken when it goes up.

The example below shows an uptrend as the tunnel borders are formed from the highest and the lowest values of the candlesticks. This highly suggests a Low, Put or Down purchase.

Fishing Strip

The main objective in using the fishing strip is to identify changes in direction that could indicate the probability of shifting trends so the trader can make the right trading decisions. Using this strategy is ideal for 15 minute contracts or higher and the longer the expiration, the more accurate data you will get. This strategy is also applicable for all types of assets which include stocks, currencies, commodities and indices.

A primary signal to trade a High, Call or Up option at the start of the third candlestick will be generated if the initial candlestick closes lower than the fishing strip and the second candlestick closes inside the strip. On the other hand, the preliminary signal will recommend to trade a Low, Put or Down position at the start of the third candlestick if the initial candlestick closes higher than the fishing strip and the second candlestick closes inside the strip.

In the example below, the initial candlestick closes lower than the fishing strip and the second candlestick closes inside the strip. This means a High, Call or Up option is the recommended position.

Zigzag Breaker

The goal of using the zigzag breaker strategy is to determine cases where the previous up and down has been breached. This is also the right opportunity to make the most of out of the momentum that is created from the price breach. Also considered as a momentum strategy, the zigzag break is mostly suitable for short charts which have timeframes of around 1 hour. It is also only applicable for the GBP/USD and GBP/JPY currency pairs.

If the previous zigzag peak has been breached and the commodity channel index value is more than 100 then a Call or Up position is recommended. If there is a break in the last zigzag trough and the commodity channel index value is lower than -100 then the recommended position will be Put or Down. Using this strategy, the trader will enter all new zigzag breaks including entering trades that goes in contradiction of a current trade having an entry rate with a break of 1 pip from the highest rate that is touched in the zigzag.
 

 

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