Best forex strategy ever
When it comes to price action-based trading systems, one that is considered as the best Forex strategy ever by many traders is the Bladerunner strategy, which is used to find entry points. Normally, traders use this strategy in combination with candlesticks, resistance/support levels, round numbers and pivot points.
Moreover, it is not necessary to have any indicators, such as MACD, Stochastics or RSI – also known as off the chart indicators - in order to use the strategy effectively. However, if you are confident about your favorite indicators, you should use them in order to confirm the entry points into the market. For instance, there are some traders who use the strategy alongside Fibonacci levels, which confirm the signals provided.
However, most traders who use the Bladerunner strategy prefer and even recommend the use of on-chart indicators instead, like the mid-line, 20 EMA or Bollinger bands. Not only are these very useful and accurate indicators, but they can be used in combination alongside the Bladerunner strategy as a derived Bollinger band Forex trading system.
Timing of Trades When Using the Strategy
In addition to learning the mechanics of the best Forex strategy ever, it is important that all Forex traders understand that there are particular times during each business day that suit certain strategies above others. For instance, the time when the Asian market opens is favorable for entry when using this strategy since there is reasonable breakout and retest of the market, while the afternoon market in Asia is relatively slow.
On the other hand, a look at the London market shows that it generally opens with erratic and highly volatile prices. In such an environment, a rational trader cannot reasonably expect the strategy to offer reliable signals. However, once the initial announcements and market news are released, the prices settle and traders can receive more reliable entries.
For Forex traders who want to find entry points into the market by using the Bladerunner strategy, it is vital to look for trending prices; the market should have broken out of a range or period of consolidation and re-testing with the 20 EMA indicator should be successful.
This begs the question: What does successful re-testing mean? Well, if a re-test is successful, the price needs to move or stay above the 20 EMA if the price is currently above the EMA. If it is below the EMA, it should also stay that way. For instance, if the first candlestick hits the EMA, then it needs to end on the same side it appeared.
Key Pointers for the Bladerunner Strategy
When you want to enter a trade, it is important that you should look for at least two indicators that identify a price level where the market is likely to react. For example, when there are two or more rejections from the 20 EMA, it is normally considered safe to enter. In an ideal situation, all traders prefer it when this occurs at the same level as support/resistance points, pivot points and other important points which also have an effect on prices.
Second, trading announcements and market news are extremely important to traders who use the Bladerunner strategy on charts with lower time durations. This is because experienced traders will normally avoid entering a trade in the 30 minutes before regular announcements and news, and will wait at least 15 minutes after the release of the news. This helps them to better decide whether or not it is a good decision to place a trade.
To use the best forex strategy ever, the Bladerunner strategy, it is important for Forex traders to not only keep abreast of economic and financial news and announcements, but also to trade in the same direction as the current trend. The most common way to confirm the trend is looking at which side of the EMA that the asset price is currently on.