My friend trades with a strategy that uses so-called anchor points and is specifically adapted to futures trading.
The anchor points are notional support or resistance levels plotted on the chart, which are based on the values of the preceding period (for example, an hour or a week). This parameter is determined by the trader, but the strategy shows good results on daily charts.
Anchor points, as a rule, set the dynamics of the trading day, so it is convenient to use them to find entry or exit zones. Reference points are plotted on the price chart as horizontal lines. In these areas the intersection of the interests of exchange participants takes place, here it is possible to determine the general direction of price movement for the nearest period.
Let's move on to practice. The variant of trading on the breakthrough will be relevant only in the presence of a well-defined trend. The trading technique is elementary: we open a deal every time the price passes the nearest reference point (the candle will be closed beyond its boundaries).
To improve performance, he advise trading only on days when the quote is near one of the significant support or resistance levels.
And, accordingly, avoid situations where there is a large distance between the price and the reference point, because there is a high probability of further market reversal with a pullback in the direction of the initial price value.
An excellent additional filter will be the use of the MACD indicator. Such variant will suit well for conservative, cautious traders who wish to get small but stable profit.
The anchor points are notional support or resistance levels plotted on the chart, which are based on the values of the preceding period (for example, an hour or a week). This parameter is determined by the trader, but the strategy shows good results on daily charts.
Anchor points, as a rule, set the dynamics of the trading day, so it is convenient to use them to find entry or exit zones. Reference points are plotted on the price chart as horizontal lines. In these areas the intersection of the interests of exchange participants takes place, here it is possible to determine the general direction of price movement for the nearest period.
Let's move on to practice. The variant of trading on the breakthrough will be relevant only in the presence of a well-defined trend. The trading technique is elementary: we open a deal every time the price passes the nearest reference point (the candle will be closed beyond its boundaries).
To improve performance, he advise trading only on days when the quote is near one of the significant support or resistance levels.
And, accordingly, avoid situations where there is a large distance between the price and the reference point, because there is a high probability of further market reversal with a pullback in the direction of the initial price value.
An excellent additional filter will be the use of the MACD indicator. Such variant will suit well for conservative, cautious traders who wish to get small but stable profit.
