Forex Trading Strategy on Indicators White Ladder
Forex Trading Strategy on Indicators “White Ladder”
The main application of the forex strategy "White Ladder” is in the stock exchange trade on the current trend, and it shows the best results on medium-term trends. The principle of its operation is based on the detection of trade signals showing the onset of overbought or resale states on the market. According to this strategy, purchases should be made at market lows and sales at highs.
The White Ladder is a multi-currency Forex strategy suitable for use on time frames of any length and on the conditions of any dilling centers. However, it should be borne in mind that an excessively large number of false trading signals may be received if the time scale is too small.
In order to work on the considered strategy on the chart of the selected currency pair, additionally it is necessary to install the following indicators in the trading platform:
1. Indicator of moving average by period 50, procedure of AI calculation - Simple, closing prices are used (loot is displayed by red line).
2. Another similarly calculated moving average indicator, however, should be set to period 200 (brown line).
3. William indicator% R for period 14.
4. The MACD-combo indicator whose settings are best left by default (12.26.9).
Another important observation is that a trade strategy on the H1 should be applied, and noise may occur with longer timeframes.
The signal to the trader to buy is the situation on the stock exchange, when the following conditions are met:
• At least one of the moving averages has a positive growth;
• Chart of William% R indicator crossed or at least touched the lower level mark 80;
• The histograms of the MACD-combo indicator are located in the zone below zero, with the blue line of the graph crossing red in the bottom-up direction, which signals the passage of the price minimum.
You can start purchases directly from the market, so using delayed warrants. In the latter case, the warrant should be placed 1 point above the upper value of the current candle. The stop loss level should be approximately equal to the current extreme, taking into account the available spread on the traded currency pair. It is necessary to stop purchases after prices form 3-7 bars, and teak-profit will be 2-3 times higher than stop-loss level. In addition, the termination of purchases can be entrusted to the trailer foot.
This forex trading strategy on the indicators implies the start of sales under the following conditions:
• Both lines of LER plots are directed downwards;
• William% R indicator will touch or with further growth will cross top level 20;
• A histogram of the MACD-combo indicator above zero, and the blue line of the graph crosses red from top to bottom.
You can exit sales either on deferred orders or directly from the market. If this is a deferred warrant, it must be displayed 1 point above the current candle. Sales stop occurs after 3-7 price bars are formed.