The ‘Three Strikes’ Strategy For the Forex Market
Do you like Price Action the same as I do? I find it so useful that work with it practically every day. So, I decided to share some strategic tips with you, my friends. Today, I want to tell you about a trading strategy called ‘Three Strikes’ that can easily help you to make a profit every day. It is based on the reversal Forex trading system.
This Forex trading strategy is based on the reversal pattern where:
The trading rules for the Three Strikes Forex strategy:
The ‘Buy’ setup:
The ‘Buy’ setup:
1.)The market should move downwards.
2.)The swing lows will appear.
3.)When two of them emerge, connect these lows with a trendline and watch if the quotes reach the third point. If they do, proceed to the next step.
4.)Buy at the market price as soon as it reaches the first three points. Alternatively, this trading strategy allows placing a ‘buy stop’ order when a candlestick that touched the third low closes.
5.)Put a stop loss below 10-20 pips under your entry price. In case you placed a buy-stop order, you can put your stop loss in 5-10 pips under the candlestick’s low.
6.)The targets for taking profit should be the swing highs or the previous highs that the quotes made earlier.
See the chart below to learn what it looks like:
The trading rules for the ‘Sell’ setup:
1.)See if there is an uptrend in the Forex market.
2.)Look for increasing peaks (higher swing highs).
3.)After two of them emerge, connect peaks with a trendline and proceed further if it reaches the third peak.
4.)Sell at the market price or use the ‘Sell stop’ order (like in the ‘Buy’ setup, just in the opposite direction).
5.)Your stop loss should be in 10-20 pips above the candlestick’s peak in case you work with a market order, or 5-10 pips, if you use a buy-stop order.
6.)The goal for taking profit should be at the level of the previous lows made by the price.
Here is an example:
In conclusion, I can say that this strategy works well on different timeframes. I’d recommend you use this strategy on hourly and daily charts (H1-D1). You can easily get a lot of pips if the market is trending strongly. It means that you can get a nice risk and reward-ratio with the precise planning of your trade. However, there may be false signals on the Forex market, so always remember your money management rules. I hope you won’t lose and get profits!
Do you like Price Action the same as I do? I find it so useful that work with it practically every day. So, I decided to share some strategic tips with you, my friends. Today, I want to tell you about a trading strategy called ‘Three Strikes’ that can easily help you to make a profit every day. It is based on the reversal Forex trading system.
This Forex trading strategy is based on the reversal pattern where:
- In an upward trend, the price will make peaks of height, and after reaching the 3rd peak, it will move downward drastically.
- In a downward trend, the price will hit the lows twice and move upwards after getting to the 3-rd low.
- The key to identifying the third high or low is using a trendline.
The trading rules for the Three Strikes Forex strategy:
The ‘Buy’ setup:
The ‘Buy’ setup:
1.)The market should move downwards.
2.)The swing lows will appear.
3.)When two of them emerge, connect these lows with a trendline and watch if the quotes reach the third point. If they do, proceed to the next step.
4.)Buy at the market price as soon as it reaches the first three points. Alternatively, this trading strategy allows placing a ‘buy stop’ order when a candlestick that touched the third low closes.
5.)Put a stop loss below 10-20 pips under your entry price. In case you placed a buy-stop order, you can put your stop loss in 5-10 pips under the candlestick’s low.
6.)The targets for taking profit should be the swing highs or the previous highs that the quotes made earlier.
See the chart below to learn what it looks like:
The trading rules for the ‘Sell’ setup:
1.)See if there is an uptrend in the Forex market.
2.)Look for increasing peaks (higher swing highs).
3.)After two of them emerge, connect peaks with a trendline and proceed further if it reaches the third peak.
4.)Sell at the market price or use the ‘Sell stop’ order (like in the ‘Buy’ setup, just in the opposite direction).
5.)Your stop loss should be in 10-20 pips above the candlestick’s peak in case you work with a market order, or 5-10 pips, if you use a buy-stop order.
6.)The goal for taking profit should be at the level of the previous lows made by the price.
Here is an example:
In conclusion, I can say that this strategy works well on different timeframes. I’d recommend you use this strategy on hourly and daily charts (H1-D1). You can easily get a lot of pips if the market is trending strongly. It means that you can get a nice risk and reward-ratio with the precise planning of your trade. However, there may be false signals on the Forex market, so always remember your money management rules. I hope you won’t lose and get profits!
