TRADING STRATEGY: FRACTAL CORRIDORS ON THE FUTURES, CFD AND FOREX MARKETS
To simplify the construction of models and the ST Trading Strategy, the rules for working with four basic ST Patterns that are common for all graphic combinations, have been emphasized. Thus, the exclusion from the game of completed Corridors facilitates the analysis of complex models.
A detailed technical analysis of the EUR/USD chart for two months demonstrates a result equal to + 800% of the initial deposit. Moreover, the received profit can be much higher if you consider the influence of economic indicators, which are published on a set schedule. Also, the final part of the book describes psychological difficulties that can hamper one’s success in the exchange game.
EUR/USD, H1
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BTC/USD, M5
The excess of traders in the market using this one strategy will not happen very quickly, if this is ever even possible. And if the market changes, you can always pick the best variable parameters from the trading strategy, change the rules for working with models, or switch to another trading tool. So, for the first time, I will check the graph of the popular cryptocurrency Bitcoin using ST Patterns.
The BTC/USD M5 chart is shown in Figures 40 and 41.
Fig. 40: Chart BTC/USD, M5, September 1, 2017
Fig. 41: Chart BTC/USD, M5, September 1, 2017
Thus, a quick analysis of this graph allows you to see a familiar picture. But please note that this crypto currency is rapidly changing. Therefore it’s probably better to use a percentage of the corridor’s height rather than a fixed value for a breakthrough. Of course, in order to start real trading, you need to spend more time studying the features of each instrument and selecting the optimal parameters. However, the basic principles of the speculative work, which is laid out in the ST Patterns Strategy, should remain the same. The wavy structure of market charts will always be a reflection of the presence of traders in the market who will open deals at critical moments and then fix profits at the Target level.