Forex Powerful strategy - trading extreme market moves

Greetings to all traders. I hope that I've gone through all trading experience now - a lot of loosing series on trading account, fraudulent commercial indicators and systems, repainting indicators and I could continue on forever.

For this reason, I would like to introduce my trading system here based on a great indicator that I use for my trading (so far I have not found any better).

The principle is very simple, the indicator shows me whether the market is beginning to be oversold or overbought. On the Internet there are many such indicators, but many of them are repainting or are nonsensical and useless, but this is the best I've ever traded with. The reason is simple, it very accurately detects when the current market move is out of the power and pretty soon most probably a reversal in trend will occur. This can be of course used perfectly - based on my experience this approach is very profitable!

You can download the indicator here:
Attachment 1918389

I trade mainly major pairs during the London and New York sessions on M1 chart. Then I read all other information from charts (Price Action).

Attachment 1918396

BUY trade - entries:
I wait until the overbought / oversold indicator becomes green on the M1 chart. According to the indicator - the market is becoming oversold. That's the easy part.

Now the tricky part and a bit of intuition. Everywhere "professional traders" say that you have to wait for the reaction of the market and then open a trade in the direction of the market. However, I'm doing the exact opposite!

Now on M1 chart I watch Price Action and the more the market is still going down, the better for me. I enter at the best moment when the market is making new lows.

Some traders call it pointless catching lows of the market. I call it entry into the market at a better price. Look at the example BUY trade below from my real account:
Attachment 1918391

I opened the buy trade little bit later - but still near the low.

SELL trade - entries:
In short trade it is exactly reversed. I am waiting when the indicator on the M1 chart becomes red. According to the indicator, the market is overbought.

After watching Price Action on M1 chart, again the more the market goes up, the better, I open the short trade ideally at a time when the market is making new highs.

Below you can see a short trade from a real account:
Attachment 1918402

This strategy of entries has a huge advantage - we will enter the market at a much better price than if we would wait for market reaction. This allows us to set much smaller stop-loss, the market is always at the beginning of the movement and thanks to this we get into profit sooner.

Warning: of course it is extremely important to not trade this strategy during a period of strong fundamentals! If you keep watching fundamentals, then you have an extremely strong strategy in your hands.

Stop-Loss: At first I set SL only a few pips from my entry as "fixed SL" , often after opening the trade the market turns, so I move very small S / L above the maximum or below the minimum that the market did recently.

Profit-Target: for profit taking I simply prefer to use the first strong movement of the market, as soon as the market will tend to reverse I close the trade manually. Alternatively I really like using trailing stop-loss (in the sell trade example above the trailing stop-loss was used). Rarely I set a fixed profit-target.

Money Management: I think that it is a good idea to use % risk, but for me it is the easiest in my intraday trading to trade with a fixed number of lots. Next trading day, based on the result achieved in previous day I consider to keep, lower or increase the number of lots.

The last thing I would like to mention is the need of choosing the right broker, if you will start to trade a similar strategy on real account. This is an intraday strategy that desperately needs good trading conditions. Therefore, if you want this strategy to trade profitably, I'd recommend to carefully consider choosing the right broker.

In this thread I will regularly publish trades from my real account. I wish you lots of profitable trades! :rockon:

Attached Thumbnails
Attached Images (click to enlarge)

Attached Files
Attached File
Overbought_Oversold_Indi.ex4 17 KB

Source.