Dead zone of trading: how to make money

Dead zone of trading: how to make money

Dead zone of trading: how to make money

It is easy and pleasant to trade Forex when you clearly see where the price is going. However, most of the time "the patient is more dead than alive" – the market is in a flat state. After reading this article, you will learn how to achieve the impossible: earn on a cumulative flat.

A cumulative flat is a "dead" zone where we don't open either market or pending orders if we don't want to lose money (and earning means not losing money). That is why the most important thing is to learn how to recognize the "Cumulative flat" graphic design on the chart. There is a simple and clear algorithm for this. Do you want to master it in just 1 hour? Then rather watch the recording of the last webinar. After spending only 1 hour of your time, you will understand how the NF is formed, how to use it in trading, get the most important recommendations for the "Expanding NF" entry point, and also learn about the psychological aspects that prevent a trader from trading profitably.
How do I detect a cumulative flat? On the course "Sniper" this is given a large amount of time. Read this article to the end – and you will be able to easily find SF on the chart, just like the students of the Academy.

So, first of all, we need a certain time period, as a rule – this is the period from 22:00 to 08:00 Moscow time
From this time period, we are interested in the minimum and maximum values plotted from the shadows:
Thus, we get a certain price channel. Next, you need to determine its width in points and compare it with the value of 1/3 of the average daily volatility for the last 20 business days:
The channel width was 95.5 points. Now it remains to determine the average daily volatility for the last 20 business days. Using the Average True Range (ATR) indicator with a period of 20 on the daily timeframe, we get the corresponding data.
The average daily volatility over 20 business days was 0.0093, or 93 points. Then divide this value by 3. 93/3=31. The width of our channel is 95.5 points, which is more than 31, respectively, this is the main condition for verifying the truth of the NF.

Next, we wait for the price exit from the NF zone to search for reversal levels, both for sale and for purchase. In this example, we will consider the possibility of selling from RU3 (reversal level) beyond the NF zone:
As can be seen from this example, the price went above the upper level of the NF and formed a further RU3 for sale. It is worth noting once again that RU3 cannot be formed inside the NF, but only outside its borders.
here is an example of the formation of two opposite reversal levels, both for sale and for purchase. As you can see, both RU3S are not inside the NF.

In addition to all this, there is an independent reversal graphic design using the boundaries of the NF – the entry point "Expanding cumulative flat".
The logic of formation of entry points "the Expanding accumulative flat»

First, we are waiting for the price exit from the borders of the NF by price rounding with the mandatory condition of returning to the broken border, as in the example below.
What is the first price rounding? The breakdown of borders, the formation of minimum consolidated candles (which their shadows are broken for the level), and the next candle breached the level of NF.

Then we need to wait for our first price round to be updated, i.e. the price should go lower and form a second price round according to the same rules as the first one.
In the end, the second price round fell below the first and returned to the broken level of the NF. It remains now to wait for the update of the second price round, i.e. the price must fall below the second price round and form a fractal there, since it is after the closing price of the fractal that the entry point is formed.When the third trough appears below the second price curve, we wait for the fractal to form. As soon as it is formed, we try to immediately buy from the market with a stop loss 5 points below the fractal and target levels of 1x and 3x, using the "safe" rule.Important clarification on the entry point itself. The third trough, as a rule, should touch a significant level of support, if we consider our example above, and exactly the opposite for sales, if we update the tops after breaking the upper limit of the NF.

As you can see, it is not difficult to follow this algorithm of actions and determine the entry points using the NF zone.

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