Elder Ray
This strategy allows traders to enter the market after the correction is complete, following the general direction of the trend. Its special feature is that it requires only a minimum of time for trading: it is enough to check the chart once a day to make a trading decision.
General characteristics of the Elder Ray forex strategy:
1. Timeframe – D1;2. The strategy is multi-currency;
3. Indicators used:
- Bears (13)
- EMA (21)
Rules for Purchases:
1. The price is higher ЕМА (21)
2. The Bulls indicator (13) signals a stable uptrend because its value exceeds the zero level.
3. The Bears indicator (13) dipped below zero but shows growth.
4. When a new candle closes above 0 on the Bears indicator, which is higher than the candle before it, it is a signal to open a buy position at the start of the next candle.
5. The stop loss should be placed below the last low, but the distance should not be less than 100 pips for a broker with four decimal places.
6. Take profit is recommended to be set at the level of 300 to 400 pips. It is also recommended to use a trailing stop for this trade, focusing on the shadows of the white candles.
7. If the Bulls indicator (13) moves into the negative zone, this is a signal for the last closing of the deal.
Rules for Sales:
1. The price is below ЕМА (21)
2. The Bears indicator (13) signals a stable downward trend, because its indicator is below the zero mark.
3. The Bulls indicator (13) rose above zero but shows a decline.
4. When a new candle on the Bulls indicator closes below 0, which is the low of the candle before it, it is a signal to open a sell trade at the start of the next candle.
5. The stop loss should be placed above the last high, but the distance should not be less than 100 pips for a broker with four decimal places.
6. Take profit is recommended to be set at the level of 300 to 400 pips. It is also recommended to use a trailing stop for this trade, focusing on the shadows of the black candles.
7. If the Bears indicator (13) moves into the positive zone (above 0), this is a signal to close the deal immediately.
Aggressive entry option according to strategy rules:
1. When all the rules for entering the daily D1 interval match, we do not rush to open a trade, but instead move to the H1 time chart.
2. During the day, if these conditions occur again on H1, then we enter the market, but already using the EMA with a period of 13.
3. We set the stop loss at the last extremum, ideally - also under the EMA (13).
4. Further, we continue the support of the order on D1, following the basic rules. This allows us to reduce the size of the technical stop loss, but it is worth remembering that this approach is more aggressive and can lead to the most frequent triggering of stop orders.
a really good strategy Elder Ray on timeframe D1, it works well in history
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