The Currency Movement Reversal Method revolves around identifying overbought and oversold conditions through the Money Flow Index (MFI). When the price approaches these levels and simultaneously interacts with the Bollinger Bands on the main chart, it signals a potential reversal. Subsequently, if a directional signal emerges, it signifies an entry point into the market. This technique is applicable across various trading platforms.
Setup
Operational Timeframe: 15 minutes or higher.
Tradeable Instruments: Major currency pairs, minor pairs, and indices.
Indicators on Metatrader 4
Money Flow Index
Bollinger Bands (periods 22, deviation 2.0)
Directional Arrow Indicators: QQE-MACD, BullsEye Forecast, Half Trend.
Trading Guidelines
Always align with the trend following the last overbought or oversold excursion of the Money Flow Index.
Long Entry
Enter when the Money Flow Index enters the oversold region (continue buying until it reaches the overbought area).
Price interaction with Bollinger Bands: Touches or breaches the lower band concurrently with the MFI.
Timing Entry: When the buy directional arrow indicator materializes. Continue buying until the MFI enters the overbought territory.
Short Entry
Enter when the Money Flow Index enters the overbought area (continue selling until it reaches the oversold area).
Price interaction with Bollinger Bands: Touches or breaches the upper band simultaneously with the MFI.
Timing Entry: When the sell directional arrow indicator appears. Continue selling until the MFI reaches the oversold area.
Position Exit
Place an initial stop loss above/below the preceding swing high/low.
Profit Target: Target the next directional arrow, mid-band, or maintain a minimum stop loss ratio of 1:1.
Money Management Strategies
Proposed Methods: Oscar Grind, Kelly Formula, Aggressive D’Alembert.
A Proven Winning Strategy! Examples of Trades
Download
https://drive.google.com/file/d/1JUHKL9h1V-iIxhXd5a2TC8nuSnUwg-G0/view?usp=sharing
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