Strategy "Medium-term counter market dynamic"

This strategy is a consequence of the "Counter Market dynamic" strategy, but their differences are that the first one refers to scalping, and the current one refers to swing trading. Here you need to enter positions for a long time, while taking away the medium-term trend. The peculiarity is that positions will be accumulated using the cumulative method, and the entry price will be averaged.

First you will need to set up a workspace:

Step 1. Go to "Add Widget" and open the "Trading View Chart" tab.

Step 2. In the open chart window, select the traded instrument and set the timeframe for 1 minute. Although this strategy refers to swing trading, it will be more convenient to find situations on a minute timeframe.

Step 3. Open the "1EX Indicators" and add the "Market Dynamic" indicator with a period of 1 minute to the chart.

After setting up, the workspace should look like this:

The value of the line!

Green line - market dynamics, which shows the strength of price fluctuations and its beating over a certain period of time.

Description of the trading strategy!!!!!

Theory: With an extreme surge in market dynamics, the price, as a rule, often reacts with a reversal or indicates a reversal in the medium term.

Entry points to the deal

  1. You need to select the extreme deviation of the market dynamics for about the next month and set a horizontal line on the indicator.

  1. Как только значение индикатора превышает экстремальное значение - заходим в сделку на разворот!

Additional conditions!

You do not need to constantly enter into a trade as soon as you see a signal. We enter the position if the previous dynamics is lower than the current one, and the price has gone even more in your direction!

We re-enter the trade only when we are at a loss to average the position!

If the extreme dynamics occurred in an alternating array, then enter the deal on the first spike, and enter the next deal only after the dynamics fade out and recover!

An example with the correct averaging
An example of the occurrence of an extreme array with attenuation of dynamics and how to properly average in this situation

Exit points from the deal

  1. Closing a position at the level of the first entry point (if the trend accelerates and there are no significant price reactions on the reversal).

  1. Closing a position using the average method (from the highest point to the lowest entry point, we determine the distance and divide it in half, after which we measure this value from the first entry point towards profit and set a take profit). In the situation below, we took the first entry point and the last one, measured the distance (990 pt.), divided it into two (495 pt.), set the take profit at a distance of 495 points from the first entry point.

  1. Closing a deal on a counter signal of the strategy.

CONCLUSIONS:

You can use this strategy both independently and as one of the filters within a variety of trading strategies used by traders.

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