The bear trap forex trading strategy is established on a pattern known as the bear trap chart pattern. Bear trap chart patterns are vigorous pattern which indicates once you recognize that, you should only be searching to purchase.
- All currency pair should work.
- Highly recommended timeframe of 15 minutes and above.
- None of the forex indicators is required.
- The forex trader should have the ability to identify or spot main support levels.
- Foreign exchange trader should have the capability to do multiple time period trading.
- The forex trader should have the capability to analyze and determine vigorous reversal candlestick.
The Bear Trap Forex trading Strategy Rules
- Once a bear trap chart pattern creates, you delay for the vigorous candlestick sign.
- Once that vigorous candlestick sign establish, position a purchase stop pending order at least two pips higher up, the high of that vigorous candlestick.
- Position your stop-loss at least two pips beneath the low of that vigorous candlestick or if not established it two pips beneath the low of the bear trap candlestick.
- For take-gain aims, target for a risk: reward of 1:3 least possible of if not utilize the preceding swing high s your “take gain target”….n instance is displayed on the chart beneath:
Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.