Forex Strategy "Giancone for 5 minutes"
Forex strategy "Giancone for 5 minutes" - to trade on this forex strategy, I recommend that you first download and read the "Tutorial on pin bars", and only after that begin to master this tactics of Forex trading.
The pin bar looks something like this:
A good pin bar should have:
- long nose (compared to the body)
- stand out very forward
- the opening and closing of the pin should be nearby
I remind you that you will find more information about Pin Bars here: "A Guide to Pin Bars"
The technical side of the forex strategy:
To trade on the forex strategy "Giancone for 5 minutes" you will need to adjust the price chart a little, namely:
1) Set the RSI indicator (6) - it will be used to find divergence.
2) Set the Bolinger Bands indicator (18.2), use it to find a trend in the market. And you can trade from its borders in the presence of a side trend and in the presence of a pin.
3) Set the Moving Averages 50 SMA and 21 EMA - needed to determine the trend in the market.
- I recommend trading on the following currency pairs: eurusd, eurjpy, gbpusd, usdjpy.
- Timeframe - 5 minutes (M5).
Forex strategy "Giancone for 5 minutes" consists of 2 fairly simple signals:
However, you should always remember that the best forex trades are those traded in a trend.
1) FIRST trading signal - This is a PIN bar in itself and the presence of a trend. If there is divergence, then this is an even better option for a deal.
And this signal is quite enough!
2) The second trading signal is called CT - counter trend - i.e. "Against the trend." Again, everything is very, very easy: divergence + Pin Bar. Look at the price chart: if there is a pin bar and divergence - it's just a Great deal!
Desired Take Profit: + 15 pips, when making a deal against the trend, basically a good target is 21 moving average.
Stop loss should usually be set a few pips below or above the pin. Or behind the line of support or resistance.
A good helper in this forex strategy will be a trailing stop from 1 point, which will quickly move the stop loss to breakeven and will rearrange it in a profitable area even in the range from 1 to 15 points (but I remind you that this value depends on the trading conditions you have chosen Dealing Center).
However, remember that you do not need to enter into transactions if your profit-to-loss ratio is less than 1 to 1, or even better 2: 1.
It should also be noted that Pins should be at the top or bottom, and not in the middle of a price jam.
And most importantly - DO NOT BREAK THE RULES!
Video version of the Forex strategy "Giancone for 5 minutes":
Download template for MetaTrader 4 - jankone_5_minutes.tpl