When I started to write expert advisors my attention was attracted by support and resistance levels. It is obvious that psychology of traders are much the same all around the world. When everyone sees rate near big support/resistance level there always happens a battle between bulls and bears. It is a very good point to buy or sell currency. The rate will either bounce off or break through.
Now lets talk about how to find these levels. I found a very good way using fractals. I'm using a simple method as always, but there is a more complicated version by Bill Williams. If you are interested you can find info about it on Google.
Open up a day chart.
Try to find a nearest row of 3 candles from your current rate where a middle one would have highest rate of 2 nearby candles. This highest rate you can consider as a resistance level. On the contrary a row of 3 candles where a middle one would have a lowest rate between 2 other candles would tell us a current support level.
If there are no such rows on active bull/bear market that means there is no strong resistance or support level. At least one level there should by anyway.
Using these levels, its not hard to build your own trading system. I recommend to use it on Eur/Usd only. I don't see these levels working on other markets because of relatively low liquidity and number of market traders.
I have made a profitable expert advisor on this method but I wasn't pleased with its efficiency. I'm pretty sure it is possible to make it better. Maybe I'll get back to it any time soon.
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