Time Frame : 1 Hour
Indicator : 200 SMA (Simple Moving Average)
Strategy : This strategy uses psychological levels of 00. (example : 1.3100, 191.00, 1.7900 ) Basically a price on your chart that ends with double zeros.
Psychological Level Strategy
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For Buy (Long) Positions
- Market must be above 200 SMA
- As market approaches near a 00 level, enter long 15 pips before it. (If market is approaching 1.2400, you would enter long at 1.2385)
- Place stops 15 pips below your entry. (If you entered long at 1.2385 your stop would be at 1.2370)
- Your 1st target is the 00 level (If you entered long at 1.2385 your 1st target would be 1.2400)
- Your 2nd target is 10 above the 00 level (If you entered long at 1.2385 your 2nd target would be at 1.2410)
For Sell (Short) Positions
- Market must be below 200 SMA
- As market approaches near a 00 level, enter short 15 pips before it. (If market is approaching 1.5100, you would enter short at 1.5115)
- Place stops 15 pips above your entry. (If you entered short at 1.5115 your stop would be at 1.5130)
- Your 1st target is the 00 level (If you entered short at 1.5115 your 1st target would be at 1.5100)
- Your 2nd target is 10 below the 00 level (If you entered short at 1.5115 your 2nd target would be at 1.5090)
Another Example
Short Example
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