HomeForex MarketPyramid Octopus Cross Foreign exchange Buying and selling Technique

Pyramid Octopus Cross Foreign exchange Buying and selling Technique

Pattern reversal methods are a double-edged sword. It is because crossover methods try to catch trades as a previous development is ending and a brand new development is growing. Anticipating when a development would finish is kind of troublesome. {Many professional} merchants liken it to “catching a falling knife”.

Nevertheless, even with its perceived diploma of problem, many merchants who’ve mastered the artwork of buying and selling development reversals make some huge cash. It is because a profitable development reversal setup permits merchants to squeeze out probably the most out of a development. It permits merchants to enter the commerce because the development is beginning and exit the commerce because the development ends.

Though it’s troublesome to anticipate a development reversal, it isn’t inconceivable. One of many strategies that merchants use when buying and selling development reversals is by in search of confirmations. There are a lot of methods to substantiate a doable development reversal. One of the vital in style method to verify it’s by in search of retest. Which means that worth motion has already damaged the earlier development and is retesting the damaged assist or resistance. Then, after the retest, worth motion ought to resume the course of the brand new development. This means that worth is extra prone to proceed in the direction of the course of the brand new development.

Pyramid Octopus Cross Foreign exchange Buying and selling Technique is a development reversal technique based mostly on the crossover of modified shifting averages. It additionally incorporates the retest of the shifting averages as shifting averages are thought-about as a dynamic assist or resistance line.

OT S RA Sign Line

OT S RA Sign Line is a customized technical indicator based mostly on a modified shifting common.

This shifting common line adjustments coloration relying on the course of the development. A lime coloured shifting common line signifies a bullish development course, whereas a pink coloured shifting common line signifies a bearish development course. The altering of the colour of the road could possibly be used as an preliminary indication of a doable development or momentum reversal.

The OT S RA Sign Line can be very customizable. Merchants can select the variety of durations lined by the indicator, the kind of shifting common line used, and the supply of the value information getting used.

Octopus 2

Octopus 2 is a directional bias technical indicator. It helps merchants objectively determine the directional bias of an underlying forex pair.

This indicator merely plots bars on a separate window. The bars it plots are both inexperienced or pink. Inexperienced bars point out a bullish directional bias, whereas pink bars point out a bearish directional bias.

The Octopus 2 indications are based mostly on the shifting of worth momentum. If worth motion causes the indicator to detect a bullish momentum, the indicator will begin plotting inexperienced bars till it detects the other momentum shift. Wherein case, it can begin to plot pink bars till momentum reverses once more.

Exponential Transferring Common

The Exponential Transferring Common (EMA) is a kind of shifting common which locations extra emphasis on the latest worth actions in comparison with prior worth actions. It’s a weighted shifting common line which makes use of exponential averages to plot its line.

Most shifting common strains are typically very lagging. This typically causes merchants to reply to worth actions a bit later than desired. EMA makes an attempt to resolve this drawback by making the shifting common line extra responsive. Putting extra emphasis on the latest worth actions make the road extra aware of the latest worth actions. This permits merchants to reply to worth motion extra rapidly.

Buying and selling Technique

This buying and selling technique is a development reversal technique based mostly on the crossover of the OT S RA Sign line and a 28-period EMA line.

Nevertheless, not all crossovers are thought-about as legitimate commerce setups. Commerce setups should even be in confluence with momentum shifts based mostly on the Octopus 2 indicator. Which means that the Octopus 2 indicator must also point out a reversing momentum which coincides with the development reversal indicated by the crossover of the OT S RA Sign line and the 28 EMA line.

Lastly, even when the above-mentioned circumstances are met, merchants should nonetheless watch for worth motion to retest the world close to the shifting common strains, reject the world, then proceed the course of the brand new development. If worth motion confirms the brand new development course, then the development reversal setup is taken into account legitimate.

Indicators:

  • 28 EMA
  • oT_S_Ra-Signal_Line
  • Octopus_2

Most popular Time Frames: 1-hour, 4-hour and every day charts

Foreign money Pairs: FX majors, minors and crosses

Buying and selling Periods: Tokyo, London and New York classes

Purchase Commerce Setup

Entry

  • The OT S RA Sign line ought to cross above the 28 EMA line.
  • The Octopus 2 indicator ought to begin printing inexperienced bars.
  • Worth motion ought to retest the world close to the shifting common strains.
  • Worth motion ought to reject the world close to the shifting common strains and proceed the bullish course.
  • Enter a purchase order on the affirmation of those circumstances.

Cease Loss

  • Set the cease loss beneath the shifting common strains.

Exit

  • Shut the commerce as quickly as worth closes beneath the 28 EMA line.
  • Shut the commerce as quickly because the Octopus 2 bars change to pink.

Pyramid Octopus Cross Forex Trading Strategy

Pyramid Octopus Cross Forex Trading Strategy 2

Promote Commerce Setup

Entry

  • The OT S RA Sign line ought to cross beneath the 28 EMA line.
  • The Octopus 2 indicator ought to begin printing pink bars.
  • Worth motion ought to retest the world close to the shifting common strains.
  • Worth motion ought to reject the world close to the shifting common strains and proceed the bearish course.
  • Enter a promote order on the affirmation of those circumstances.

Cease Loss

  • Set the cease loss above the shifting common strains.

Exit

  • Shut the commerce as quickly as worth closes above the 28 EMA line.
  • Shut the commerce as quickly because the Octopus 2 bars change to inexperienced.

Pyramid Octopus Cross Forex Trading Strategy 3

Pyramid Octopus Cross Forex Trading Strategy 4

Conclusion

This crossover technique produces good commerce setups which many beneficial merchants use.

Most merchants would merely use the crossover of shifting common strains as a foundation for a development reversal setup. Nevertheless, except the momentum could be very robust, merchants might typically get caught in a whipsaw motion specifically if the market could be very erratic or uneven.

Utilizing the momentum affirmation of the Octopus 2 indicator and the affirmation of the retest of worth motion considerably will increase the chance of the contemporary development persevering with.

Merchants simply merely have to handle trades appropriately as worth strikes of their favor.


Foreign exchange Buying and selling Methods Set up Directions

Pyramid Octopus Cross Foreign exchange Buying and selling Technique is a mixture of Metatrader 4 (MT4) indicator(s) and template.

The essence of this foreign exchange technique is to rework the accrued historical past information and buying and selling indicators.

Pyramid Octopus Cross Foreign exchange Buying and selling Technique supplies a possibility to detect numerous peculiarities and patterns in worth dynamics that are invisible to the bare eye.

Primarily based on this data, merchants can assume additional worth motion and regulate this technique accordingly.

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How you can set up Pyramid Octopus Cross Foreign exchange Buying and selling Technique?

  • Obtain Pyramid Octopus Cross Foreign exchange Buying and selling Technique.zip
  • *Copy mq4 and ex4 information to your Metatrader Listing / consultants / indicators /
  • Copy tpl file (Template) to your Metatrader Listing / templates /
  • Begin or restart your Metatrader Consumer
  • Choose Chart and Timeframe the place you need to check your foreign exchange technique
  • Proper click on in your buying and selling chart and hover on “Template”
  • Transfer proper to pick out Pyramid Octopus Cross Foreign exchange Buying and selling Technique
  • You will notice Pyramid Octopus Cross Foreign exchange Buying and selling Technique is obtainable in your Chart

*Word: Not all foreign exchange methods include mq4/ex4 information. Some templates are already built-in with the MT4 Indicators from the MetaTrader Platform.

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