Well anyway the strategy can be found here Sure, why not highlight it here. This is a retracement-continuation trading method. It combines trend identification properties of moving averages with the pattern recognition entry techniques. The primary pattern to look for is the Price Reversal Bar - in conjunction with a retracement within the current Trend Cycle.
A retracement within a downtrend is a minor rally. A retracement within an uptrend is a minor decline.
In diagram "A", areas 1 and 2 are rally retracements in the overall downtrend - minor rallies that ended with descents to new lows. In diagram "A" areas 3 and 4 are decline retracements in the overall uptrend - minor dips that ended with rallies to new highs.
The Floor Trader Trading System - Trading Setups Review
During an uptrend, a decline retracement forms - price bars with lower highs. If the uptrend is confirmed by the Moving Average indicator explained later , then the trader looks to buy the upside breakout of this temporary decline, by watching the high of the price bar prior to the current price bar. When prices within the current price bar rally above the high of the prior price bar by 1 tick or more, the trader should buy.
Diagram "B" shows two examples. Price bar "X" is the first bar in the decline retracements which rallies above the high of the bar which precedes it. In a downtrend, a rally retracement forms - price bars with higher lows. If the downtrend is confirmed by the Moving Average indicators, then the trader looks to sell the downside breakout of this temporary rally by watching the low of the price bar prior to the current price bar. When prices within the current bar fall below the low of the prior price bar by 1 tick or more, the trader should sell short. In the above example, price bar "X" triggers the short sale.
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- Trend Identification Rules?
If phoning in the trades, the trader would have to resort to trading at the market or at a limit price "giving up" a tick or two. This procedure would be reversed for buy signals. The best retracements will contain bars before the reversal occurs. In volatile price moves, 1 bar retracements are sometimes valid. Generally, rally retracements in a downtrend will be steeper and will contain fewer price bars than decline retracements in an uptrend.
A retracement lasting longer than 6 bars may be suspect. The shape of a retracement is also important. The optimum formation consists of price bars which become smaller in range as the retracement progresses. Example "A" above, for sells. Also valid are price bars of equal size "B". Patterns with widening price bars are less reliable and may be skipped "C". This is an area where individual judgment is needed. For buying into an uptrend, "D" and "E" are ideal formations, "F" is questionable.
What makes certain patterns ideal is the "V" shape they form when the Price Bar Reversal occurs. The best trades usually spring from symmetrical V patterns. Trend Cycles - looking at the price bar formation in conjunction with the 9 and 18 period moving averages will identify the presence of either an Uptrend Cycle or Downtrend Cycle.
Once the trend cycle is known, the trader next looks for retracements.
Floor Trader’s Forex Swing Trading Strategy
Prices trading above both MA's moving averages. The 9 MA line is above the 18 MA line. The slope of one or both of the MA's is up. Exception: occasionally the 9 MA will be under the 18, but curving upward, about to cross over. This formation is allowed.
Number 1 is the primary qualifier; prices must first trade above both MA lines - subject to these 2 conditions:. Trade above the lines should last for at least 3 bars. Trade should take place at a "significant" distance above the lines before retracing to touch the MA lines. Prices trading below both MA's moving averages. The 9 MA line is below the 18 MA line. The slope of one or both of the MA's is down.
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Exception: occasionally the 9 MA will be above the 18, but curving down, about to cross over. Number 1 is the primary qualifier; prices must first trade below both MA lines - subject to these 2 conditions:. Trade below the lines should last for at least 3 bars. Trade should take place at a "significant" distance below the lines before retracing to touch the MA lines.
The market begins to rally without touching the 18 MA and triggering the L1 signal. Level 2 buys are subject to this condition: Do not take an L2 buy right after a Crossback Top explained later. Wait instead for a Level 1. Two qualifiers: 1. The Corssback Top condition as with the L2 signal, and 2. Actively scan device characteristics for identification. Use precise geolocation data.
Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. A floor trader is an exchange member who executes transactions from the floor of the exchange, exclusively for their own account. Floor traders used to use the open outcry method in the pit of a commodity or stock exchange, but now most of them use electronic trading systems and do not appear in the pit.
Floor traders fulfill an important role in commodity and stock markets by providing liquidity and narrowing bid-ask spreads. Floor traders may also be referred to as individual liquidity providers or registered competitive traders. Floor traders are the traders typically represented in movies when a scene of a securities exchange is shown.
These traders are often depicted as being emotionally invested in the trades they are executing because they are trading with their own money. In reality, most traders are not floor traders, and floor traders are increasingly rare, primarily because most traders who use their own money have switched to electronic trading, which is not conducted in the pit.