For a Forex trader, any revival in the market will have an equally proportional effect on his deposit. The amount of profit or loss will depend on the level of risk accepted. Therefore, the right direction generates income, and vice versa. All we have to do is choose this direction. This trading system is based on the principle of dance, when partners follow each other. Only here should a trader follow the market. What goes up must go down, everybody knows it! Inertia continues to move objects into motion and resists objects at rest from movement. Everybody knows that, too! Life is filled with cycles that scientists now call “circadian rhythm”. Night and day, rise and fall, sleep and awakening, excitement and depression. The market is subject to the same laws. The “Dance Trading System” strategy combines elements of the “Moving Average bounces” and “Price Action Bars” systems with the application of the “round number” effect.
1. Pairs with US dollar to trade only during London and US sessions
2. Pairs with Japanese yen to trade only during London and Asian sessions
3. Pairs with Euro to trade only during the Frankfurt session
Obviously, some pairs correspond to more than one session.
1. Only 15-minute charts are used to login
2. Other charts are used to determine the direction and refine the input
3. Support and resistance levels are determined by the charts H1andD1.
Number of transactions:
Have a rest after 5 successful deals. Stop and think after three losing trades. No more than 3 transactions per session.
The loss limitation levels should be “adequate”, which means different stop-loss on different currency pairs and in different conditions. Set the stop-loss so that it is not captured by random market fluctuations. Good stop-loss locations are round numbers and moving averages where the price has pushed back or crossed the line. Don’t forget to consider the spread.
The targets have arrived:
There’s no definite take-profit in this strategy. You can close a fixed number of points. You can close positions near round numbers or support and resistance levels. The best option is to close it when the trend reverses. Be careful in a volatile market and do not be afraid to take your points early.
Moving averages of 50 EMA and 35 SMA determine the trend direction. We buy only when the price is higher than these lines. To enter purchases 5 and 10 EMAs must be above the 35 and 50 middle lines. In this case, the position is closed when the lines cross the lower value.
Entry into sales is similar. The position opens when 50 EMA and 35 SMA lines of a lower value cross downwards. If the signal changes to the opposite, the position is closed.
Here is a brief version of the strategy. Here you can download the complete manual in English.
Download system files.