Psychological round numbers trading strategy
Hello traders!
I have been working on this strategy for the past week and it's perfect to avoid any kind stop loss hunting and it also helps us to remain in a trend. It's not a strategy that I have created but it's an old strategy where most of the time market reacts at the psychological levels.
The Trend
In this strategy, we will only move in the direction of the trend and we can check the trend in the 200 Moving Average in D1 timeframe. In this case, the candles are below 200 Ma so we will only sell from key levels.
The strategy
In this strategy, the psychology numbers or key levels are the round figures. In this case, we are using Even round figures. I tried shorter numbers in BTC and they didn't work so we will trade the numbers that are perfect. I found out these even round numbers are working fine.
Most of the time Market is reacting to these levels and we will take benefit from it. The market moves from zone to zone and if there is a perfect reaction at the entry zone then it will move to the next zone and will hit our target.
The IMPORTANT point to understand
First, let the market cross the key level and let the candle close below the key level in at least 1hr time frame for entry so that the past Key level will come alive. Suppose we are looking for an entry at 18K Key level so first let the candle close below the 16K level once there is a candle that closed below that level(which is already done) then you can put a short entry at 18K.
Suppose the market was turning around from 16200 then we cannot put the sell entry at 18K but we can put the sell entry at 20K because if it failed to cross 16K it means the market must be aiming to break 18K and we cannot risk selling there.
Rule
We will not rely on the first entry only if the market moves in negative then we will enter again from the next Key level this will help us to end up in profit and it increases the chance of no loss but in some cases market does move in negative and hit the stop loss so it's important to use proper risk management.
Risk Management
Proper Risk management is important in this strategy because you can see movement is big and investment will be wiped out if you don't use proper risk management.
The suggested Risk per trade is
Use 2% amount at the first entry with 10x leverage and use 50% more which is 3% of the account if the market moves up and touches entry 2.
Max, you can double these numbers if you are high-risk takers.
Why use this strategy
Previously patterns trading strategy was struggling whether it was a clear breakout or a fakeout. This season does not look good for pattern trading. The market was traveling in all directions so I struggled and find out the best strategy that is perfect according to the current scenario.
Don't forget to hit the like button and follow to stay connected.
I have been working on this strategy for the past week and it's perfect to avoid any kind stop loss hunting and it also helps us to remain in a trend. It's not a strategy that I have created but it's an old strategy where most of the time market reacts at the psychological levels.
The Trend
In this strategy, we will only move in the direction of the trend and we can check the trend in the 200 Moving Average in D1 timeframe. In this case, the candles are below 200 Ma so we will only sell from key levels.
The strategy
In this strategy, the psychology numbers or key levels are the round figures. In this case, we are using Even round figures. I tried shorter numbers in BTC and they didn't work so we will trade the numbers that are perfect. I found out these even round numbers are working fine.
Most of the time Market is reacting to these levels and we will take benefit from it. The market moves from zone to zone and if there is a perfect reaction at the entry zone then it will move to the next zone and will hit our target.
The IMPORTANT point to understand
First, let the market cross the key level and let the candle close below the key level in at least 1hr time frame for entry so that the past Key level will come alive. Suppose we are looking for an entry at 18K Key level so first let the candle close below the 16K level once there is a candle that closed below that level(which is already done) then you can put a short entry at 18K.
Suppose the market was turning around from 16200 then we cannot put the sell entry at 18K but we can put the sell entry at 20K because if it failed to cross 16K it means the market must be aiming to break 18K and we cannot risk selling there.
Rule
We will not rely on the first entry only if the market moves in negative then we will enter again from the next Key level this will help us to end up in profit and it increases the chance of no loss but in some cases market does move in negative and hit the stop loss so it's important to use proper risk management.
Risk Management
Proper Risk management is important in this strategy because you can see movement is big and investment will be wiped out if you don't use proper risk management.
The suggested Risk per trade is
Use 2% amount at the first entry with 10x leverage and use 50% more which is 3% of the account if the market moves up and touches entry 2.
Max, you can double these numbers if you are high-risk takers.
Why use this strategy
Previously patterns trading strategy was struggling whether it was a clear breakout or a fakeout. This season does not look good for pattern trading. The market was traveling in all directions so I struggled and find out the best strategy that is perfect according to the current scenario.
Don't forget to hit the like button and follow to stay connected.
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