The Rules strategy provides for the opening of a trading position, not more than once a day. Trading can be performed on any currency pairs. Before opening the order to buy or sell, you should definitely wait until the candlestick closes.
About the Rules strategy
The Ruler strategy is based on the competent use of support and resistance levels, as well as simple moving averages with periods of 10 and 20 days – SMA 10 and SMA 20. Summarizing the trading methodology of this strategy, it can be noted that it is a simplified form of the Price Action strategy.
According to AvaTrade reviews, although there are not so many signals when trading on daytime timeframes, having opened more than a dozen charts of various assets, the investor will always be able to find a sufficient number of opportunities to enter the market.
Using the Ruler strategy before the opening of the next transaction, you should carefully analyze the current situation on the market, given certain prerequisites and rules:
- Enter the market only on rebounds from horizontal levels. Using support, the investor should only buy. Using resistance, you should only sell.
- The order is opened at the mandatory crossing with the price of SMA 10. The candlestick should be clearly closed after this crossing (higher or lower).
- If even the above conditions are met, but another level of support/resistance/SMA 200 is close to the trend, then the transaction should not be conducted since there is no profit potential.