BUY/SELL PRESSURE STRATEGY
Buy/Sell pressure used with the “s” mode.
The strategy is based on the fact that Squat bars, Trend Reversals and Trend Snapback have a high percentage of good trade all by themselves. Just open a 1M chart and only plot the above signals and you will see many of them will give you a +7-12 pips move. So here is the question, why are we not taking them more often? When those signals are taken in favor of the current trend, they work like wonders all the time!
So how do you ride or surf the market’s “waves”? I use buy/sell pressure with “s” mode. Watch the video 7b. at http://www.leveragefx.com/forexvideotraining/. Now, I use this tool to set myself on a “buy mode” or “sell mode” if you know what I mean; in order to surf the next Forex wave. Those waves I’m talking about are the swings high and low. On a 1M chart is very easy to get confused as to what are the swing highs and low. I personally see price noise (small swings) which should not be taken into consideration. Those who have my workspace noticed a set of new balance point lines: green 38’ (fib. Number) yellow 75’ and then the classic 180’ represented as red.
I have more uses of these bpls but there is one of them that plays a key role on this strategy; the green 38 minutes bpl. When price breaks through and below 38’ bpl you have just found a new swing high and should mark it just at the last higher high and refresh the chart. On the opposite way, when price breaks through and above the 38’ bpl, you have a new swing low and a new cycle begins, normally a “buy mode”.
Its very important you take swings highs and low as described above for much better results and a lot less confusions as to what exactly are the swings high/low I pay attention for this to work properly and give you low risks trades. Once swings highs and lows are determined and you “set yourself on one of the two modes (buy or sell)” you begin to take the signals (squat bars, trend reversals,trend snapback) in favor of that new buy/sell pressure. In theory that’s what I call surfing the Forex waves. Go WITH the wave, NOT AGAINST IT. With the wave you slide along! Against it you plunge below!
Additional signals to also take into account are: stat lows and 2nd deviation, clusters of S&Rs, Fibs retracements and all of the mentioned BPLs. Including daily BPLs and last but not least the heat map!
Examples: You start your trading session with Buy pressure; price is making a retracement, and lands at a stat low. What do you do? BUY
You start your trading session with Buy pressure; price hits one of the fib retracement, what do you do? BUY.
You start your trading session with Buy pressure; price lowers down to a cluster of S&R, what do you do? BUY.
You start your trading session with Buy pressure; price breaks through and comes back down to one of the BPLs; what do you do? BUY
Usually from one “wave” (swing high/low) to another you will find several low risk, no-brainer trades , more than enough to make your daily target of 10 pips or $500.
Stable Data to have in mind all the time:
When you have more and more different mathematically calculated signals telling you the “same story” you have to properly acknowledge that. It means something!
My own personal rule on this strategy is, “The more signals that tells me to buy or sell; the more lots/mini-lots I will put on the table” It‘s working for me with high percentage wining trades.
The strategy is pure common sense. A child could do it and make money. So this summarize the full strategy. It would be nice to automate the buy/sell pressure “s” mode to use the 38’ bpl to plot the swing high and lows and automatically adjust every new cycle or “wave” to surf. J
Sincerely
Al Castillo
Any suggestions or comments would be appreciated.
posted by Al Castillo @ 4:35 PM
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