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Fvg_strategy

Trading GBPUSD | Judas Swing Strategy 02/07/2024Last week saw a lull in trading activity for the Judas Swing, concluding with no trading opportunity on the four major currency pairs we monitor ( FX:EURUSD , FX:GBPUSD , OANDA:NZDUSD , FX:AUDUSD ). This pause in activity has heightened our anticipation for engaging in some promising trades this week. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone The next step on our checklist is to await the sweep of liquidity on either sides of the zone, which will give us a directional bias for the trading period. Liquidity was taken at the highs after 20 minutes, signaling our focus would be on identifying potential selling opportunities. Although a bias has been established for the trading period, we do not proceed to sell indiscriminately. To enhance the probability of successful trades, we await a break of structure (BOS) on the sell side. Following the BOS, we expect the price to pull back to the initial Fair Value Gap (FVG) formed during the development of the leg that broke structure. Next on the checklist, we wait for the price to retrace into the Fair Value Gap (FVG) and execute the trade only after the candle that entered the FVG has closed. After executing the trade, we were in profit for about 10 minutes before the price reversed, leading our position into a drawdown. During the drawdown, we remained calm because we had risked only 1% of our trading account on the trade, aiming for a 2% gain if the trade was successful. We were aware that our strategy does not guarantee a 100% win rate but rather hovers around 50%, indicating that some losses were inevitable. To avoid becoming emotional over the position, we let the trade run its course and accepted whatever the outcome would be. We later reviewed the position and discovered it was once again moving in our favour, only to reverse direction and head towards our stop loss. We anticipated an average position duration of 6 hours and 35 minutes for the trade, so we let the trade run. We waited with patience, yet our perseverance did not bear fruit on this occasion, as our position reached the stop loss after 4 hours and 40 minutes, leading to a 1% reduction in our trading account. It's important to note that we were on a winning streak for a few weeks and it's normal to have losing trades; no strategy guarantees a 100% win rate. However, with proper risk management and a favorable risk-reward ratio, the potential for profit can outweigh the losses.
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 13/05/2024 At 8:25 AM EST, we got to our trading desk and started the day doing the basics on our Judas Swing strategy checklist which includes: - Making sure the timezone is set to New York time - Making sure we're on the 5 min timeframe - Marking the trading period from 00:00 - 08:30 - Marking the high and low of the zone Next, we patiently awaited price action to take the liquidity positioned on either side of the trading zone, providing us with a directional bias for the trading period. In this instance, liquidity was taken at the highs after 10 minutes, signaling our focus would be on identifying potential selling opportunities. To avoid getting trapped, we waited for price to create a Break of Structure (BOS) to the opposite side (sell side) to indicate selling. Subsequently, our focus shifted to identifying the initial Fair Value Gap within the displacement leg that broke structure. Next, we waited for price to retrace, filling or touching the created Fair Value Gap (FVG), and only executed our trade once the candle that touched or entered the FVG had closed. In this case, the subsequent candle that formed was a bullish one, closing within the Fair Value Gap. Our stop loss is set above the high that formed the Break of Structure (BoS) leg, with a minimum requirement of 10 pips. In this instance, placing the stop loss above the high would result in only 7 pips, necessitating an increase to meet the 10-pip minimum. This rule was established not by chance, but through extensive backtesting of numerous trades, demonstrating how it prevents us from being stopped out before price moves in our favor. After executing our trade, we experienced a significant drawdown that nearly reached our stop-loss level, only for the price to eventually reverse in our favor. Had we set a 7 pip stop, we would have been stopped out; however, our rule of a minimum 10 pip stop saved us from that outcome. Although the price reversed again and entered a drawdown, we remained unfazed by this reversal due to our cautious risk management strategy. We had committed just 1% of our capital to this trade, with the prospect of a 2% return. We maintained confidence in our strategy, given its extensive backtesting, which has demonstrated a win rate of 52% on GBPUSD trades. The GBPUSD pair then consolidated around our entry point, prolonging our involvement in this trade. However, based on our collected data, we anticipated an average position duration of 6 hours and 35 minutes, which could extend to 2x-3x longer for the trade. Patience is crucial in trading, as it often places you in challenging situations We patiently waited, and our persistence paid off when our target was finally reached, securing a 2% gain on the trade where we had risked 1%
by CleoFinance
Trading EURUSD | Judas Swing Strategy 24/04/2024At 8:45 AM EST EURUSD made a big move down that took out the Judas Swing Zone Low. Then it came straight back up to create a BOS(break of structure). After the liquidity grab at the low and the subsequent break of structure (BOS), we patiently awaited a retracement towards the initial Fair Value Gap (FVG) that emerged during the displacement leg. We then waited for price to retrace, filling or touching the created Fair Value Gap (FVG), and only executed our trade once the candle that touched or entered the FVG had closed. After executing the trade, price initially moved favourably in our direction. However, it later took a turn towards our stop loss. Despite this, we maintained confidence in our strategy, given its extensive backtesting, which has demonstrated a win rate of 52.78% on EURUSD. Despite being in a drawdown at this point, we remained steadfast in our approach. Having accepted the calculated risk of only 1% of our account for a potential 2% gain, we were unfazed by the proximity of price to our stop loss, and maintained our trust in the strategy. Price eventually reversed and paused briefly around our entry point before resuming its favourable movement. We remained unperturbed by the duration of the trade, as our strategy data indicates an average trade duration of 8 hours and 27 minutes. We patiently waited, and our persistence paid off when our target was finally reached, securing a 2% gain on the trade where we had risked 1%
by CleoFinance
Bitcoin weekly roadmapHi guys, I hope the growth of Bitcoin has brought you rich profits. What happened today was that we expected a temporary drop to fill the FVG area, which it did and it bounced back to 47,000. This upward trend continues until reaching the price area of 48000, the existence of a lot of liquidity and more resistance can bring the price back from this area. My idea is that Bitcoin will grow to the supply area of 48000. By collecting all the liquidity in this area, the price will experience a decrease to the demand areas of 43550 and 41250. Of course, you should keep in mind that with the news that will come for Bitcoin on Wednesday, let's have the possibility of any reaction for Bitcoin. Adjust your trades with optimal risk and guaranteed loss limit. If such analyzes are useful for you, I will be happy to support you and share your opinions with me in the comments section.
Long
by Golden_Star1994
8
My GBPUSD Buy Setup For Next WeekCheck out this Buy setup for GBPUSD projection for next week move. FOREXCOM:GBPUSD Thoughts Process Behind the Setup: Weekly Time Frame: Bullish plus FVG and bearish order block above price serving as a draw on liquidity. Also, price already retraced to fill the FVG below price. Which means price is now ready to push higher to fill the FVG above. Daily Frame: Price bouncing off daily bullish order block to fill an imbalance. The only setback on daily for now is the bearish order block where price is currently at. 2HR: Price took out sellside liquidity and dropped further into the weekly FVG and then created a shift in market structure leaving a clear FVG behind. Entry: I used my FIB to locate OTE around the FVG which is where i will be placing my limit order for entry. What do you see on your own chart?
Long
by Elijahenoch7
6