"Jarroo Method" - a Price Action strategy you will like
Hello, fellow forex traders! It is no secret that one of the most popular trading systems on our site is Price Action. However, many consider Price Action overly complicated because of the large number of conditions and nuances.
Today we will get acquainted with the strategy known online as the "Jarroo Method", based on Price Action but with its own interesting features: its own method of identifying key levels, simplified entries, and competent identification of nearby targets. Even if you trade classic PA profitably, I advise you to pay attention to this TS.
Characteristics of the trading system "Jarroo Method"
Platform: Any
Currency pairs: Any
Timeframe: D1
Trading time: around the clock
Recommended brokers: Alpari, Roboforex
Reference section
- How to trade with pending orders
Nomenclature used in the system:
LCS= lowest close of support - the level below which the price could not close.
HCR=highest close of resistance - the level above which the price could not close.
PBT&CA= price breaks through & closes above - the price breaks through and closes above.
PBT&CB= price breaks through & closes below - the price breaks through and closes below.
DCC= Daily Close Confirmation
Building levels
Levels in the "Jarroo Method" trading system are determined in a not quite standard way.
1) First, we look for swings - local lows and highs of the price movement. That is, the ends and beginnings of movements noticeable to the naked eye. If a swing does not catch the eye, then it is not a swing.
2) Next, we mark only those levels that fall on highs/lows where there are at least two candles with the same close/open.
3) Please note that levels in this trading system are drawn through the opening/closing points.
Entry rules
After the candle has broken through and closed above (for buys), or below (for sells) the level, place a pending buy/sell order near the level.
Stops and targets
- Place the stop-loss behind the opposite Low/High point of the breakout candle. If the stop turns out too close to the level, place it behind the High/Low of the previous candle. If the breakout candle is very large, place the stop simply behind the level.
- To set the take-profit, use the nearest support / resistance levels, the stop-loss level multiplied by 2 or 3, as well as the shadows of previous candles.
Additionally
- Money management is recommended to be the same as for Price Action - 1-2% per trade. To calculate the lot, you can use a special application.
- After reaching the nearest target, or a profit level equal to 2 stops, we move the position to breakeven.
- If the candle closes below/above the level (against our position) from which we entered, we exit without waiting for the stop.
- The DCC rule (Daily Close Confirmation):
For more conservative entries, you can use the following technique. After a signal candle has formed that broke through the level, we do not place a pending order, but wait for one more candle. And only if this candle following the signal bar closes above/below the level (that is, it does not break through it in the opposite direction), do we place a pending order.
Conclusion
The trading system "The Jarroo Method" is best suited first and foremost to those for whom classic Price Action seemed too complicated. However, the interesting methodology for building levels and the techniques for determining targets based on the wicks of previous candles may also prove useful to traders working with other strategies.
Discussion on the forum
Best regards, Pavel Vlasov
TradeLikeaPro.ru
Hello, fellow forex traders! It is no secret that one of the most popular trading systems on our site is Price Action.