Advertising Tactics

Advertising Tactics

Advertising Tactics

In this article, we will study the tactics of advertising, as well as give a strategy for working on it in the Forex currency market. In particular, information about its features and trading rules will be disclosed. We will also give you some recommendations that will help you apply it correctly.

Note that the tactics of Advertising are the result of various modules and technical actions used in the complex, aimed at forecasting the Forex market.

The essence of this tactic is to build a channel using trend lines. The probability of breaking through its borders is estimated based on the price behavior in this channel.

In order for the ad Strategy to be executed according to the trading conditions, the so-called channel borders are first built on the basis of 4 points. We are talking about two points (local minima) that are connected by the channel boundary, as well as two points (local maxima) that are also connected by a segment.

If we consider the construction of the channel within the framework of Advertising tactics, on an uptrend, then the price must meet the following conditions:

The first point is a local minimum.
The second point will be formed after the price rollback from the first point up and further formation of the local top.
The third point occurs as a result of a corrective downward movement of the price. This is how the minimum price is formed. Mandatory condition-it must be located above the first local minimum.
The fourth point appears after the price goes on a rollback to the level located above the 2nd point.
A trading tool that is available in every MetaTrader 4 trading terminal – “trend Lines” - will help us build a price channel. Connect them to the same type of formed points 1-3 and 2-4.

Then you need to draw horizontal lines from each point (we have 4). They will act as support and resistance levels, as well as trend targets. To determine the fifth point (long-term goal), you need to draw a trend line in the middle of the channel, between the third and fourth points.
You can see that as a result of the intersection of two lines, a fifth point is formed. This is our first goal of the upward trend. There is a high probability that after crossing or touching the fifth point, the quote will turn in the opposite direction.

To the trader a signal for market entry tactics Adverza is price breakout one of the boundaries, but also a candle close outside of it. In other words, a Sell signal means breaking through the lower channel, and a Buy signal means opening a Forex buy order.
As soon as it becomes clear that the trend has changed, we build a new trading channel (under a new downtrend). Take Profit and Stop-Loss are set in accordance with the standard recommendations for working with stop orders.
Recommendations for Advertising tactics

It's time to give recommendations to all those who liked the tactics of Adverts, and who want to trade on it. Note that it is designed for long-term trading. Therefore, it must be considered on D1. Check if the channel borders are broken on weekly W1 charts. This will filter out false signals.
Pitfalls of Advertising tactics

Working with price channels using the Advertising strategy involves two developments: the price will reach the channel borders and break away from them, or the price will reach the channel borders and break through them. This is why it is considered safer to take the rebound price at point 5. But what happens if the price breaks the channel boundary at point 5? And then the movement along the previous trend will continue? This is the main problem of trading on the tactics of Adverts. After all, the trader is not sure how the price will behave at point 5: it will break through the level or show a rebound.

It is also worth noting another problem when trading using this method – a wide sideways movement.

In addition to the list of the main problems of trading on the tactics of Adverts is a late entry. Why? Think for yourself, if you enter at point 3, and not at point 5, then the number of points taken when passing the price will be greater, and with it the profit received. Thus, the point of entry to the market according to the strategy of the Advertiser is considered after the end of the price movement impulse. And it is more appropriate to consider the input at the beginning of the pulse. But according to the rules of Advertising tactics, it is not recommended to do this.
Problem solving

To solve these problems, professional traders decided to use the tactics of Adverts in a slightly different way. So, they open trades not after the end of the impulse, but at its beginning. That is, they count on the breakdown of point 5.

However, you can expect anything from the market. In other words, for some time the point 5 will break through the price, and for some time the price will bounce off it.

We recommend that you analyze the trend direction on the weekly chart to weed out false market entries. And so, above we briefly reviewed examples of trading on the tactics of Adversa, gave recommendations for trading on the daily chart, and also outlined the problems faced by traders using this trading system. Now you understand why the tactics of Adverts are considered ambiguous and many do not understand the trading system.

Among the advantages of using this method in the foreign exchange market is a simple 4-point plot. In other words, you can confidently declare a price reversal based on four points, not three.

Above, we have considered one of the most difficult to understand universal trading systems – the tactics of Adverts. Universality consists in application not on separately taken, but on any assets of the financial market. If we consider this method as determining long-term goals, the chances of finding them are significantly increased.

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