Post by account_disabled on Mar 9, 2024 4:34:08 GMT -5
Trading against the trend using price action, VSA and pivot points The main rule of investing is: the greater the risk, the greater the return. Many fear this and are not ready to take significant risks, especially when everyone else says that "Trend is your friend, trade under the trend" and does not recommend catching falling daggers. However, if you learn to control risk and understand that losses are an inherent part of success, the world of trading begins to shine with new colors. A narrow stop order and an attempt to reverse the extremes became the calling card of experimental trading strategies. Turtle soup is one of them. The author of the strategy is Linda Raschke, who described it in her best-selling book “Street Smarts.” The famous trader refers to the 70s of the 20th century, when it was popular to buy 20-day and 4-day highs and supporters of this trading system called themselves "turtles.
Obviously, it was a trend following strategy, but it produced Mexico Mobile Number List many false signals, and was the reason for the development of the “Turtle Soup” strategy. This strategy is based on the following principles: - The market must form a new 20-day high. The system is also efficient within the day, which is why the term "new 20-bar high" can be used. - The previous 20-day high must have formed at least 4 bars earlier. If these conditions are met, the trader has the possibility to place a pending sell order 5-10 points below the previous 20-day high and the stop order 5-10 points above an existing peak. Linda Raschke recommends using trailing stops to lock in profits and not sticking to the "sell and hold" principle because it is very likely that the existing downward movement is nothing more than a correction of an uptrend.
Turtle Soup” Strategy on the EUR GBP Daily Chart LiteFinance: Turtle Soup: Powerful Forex Strategy | Litefinance Using the “Turtle Soup” strategy, we must understand that one or more stop orders can be activated before the market begins to move in the direction you want. Then, thanks to a good operation, you can completely cover the previous losses. Such a trading approach does not suit everyone, so a conservative trader can use additional filters that add confidence when opening a position. For example, in the case of EUR GBP , a new 20-day high is nothing more than a bar of pins in price action and up-thrusts in VSA. It formed at a major pivot point, while MACD showed a divergence with the price chart, increasing the pivot risks of an uptrend.