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Snake eye

Snake eye

by Dr.Hamdi Boukamcha
Hey guys i wish to present the snake eye methodology. Its an previous technique thats utilized by Ground merchants.

What do you guys take into consideration this technique?
Credit score goes to Akuma99

Snake-Eye Buying and selling Technique

This methodology applies the identical methods utilized by the skilled Ground Merchants and is predicated round what a 5 minute bar is indicating at any given time.

Chart Set Up
Arrange and refer to those three charts solely, no others:

5 minute bar chart:
Set with a 8 interval easy transferring common set at “low” and 10 interval easy transferring common set “excessive” – configured with bars. That is the principle chart used to search for commerce set-ups.

15 minute bar chart:
Configured the identical as 5 minute. This chart is especially used to find out development route and isn’t to commerce from.

Transferring Averages
These are used to help with figuring out the energy, weak spot or neutrality of the market and which route to play it.

When the value is buying and selling above the 10 transferring common line on the 5-minute chart, with at the least one full worth bar having closed above and sitting on prime of the road, this means energy, signaling potential upside and presumably an extended commerce forming.

When the value is buying and selling beneath the 8 transferring common line on the 5-minute chart, with at the least one full worth bar having closed beneath and totally fashioned beneath the road, this means weak spot, signaling potential draw back and presumably a brief commerce forming.

Every time the value bars commerce above the 10 transferring common line or beneath the 8 transferring common line on the 15-minute chart, it is a stronger affirmation of route than when on the 5-minute chart.

Development Route
It is very important know this always, as you could at all times commerce within the route of the development, by no means in opposition to it. Development route is especially decided by reference to the 15-minute bar chart and the place the value bars are buying and selling in reference to the 8 and 10 transferring averages, as beforehand
defined.

The route through which the transferring common strains are pointing on each the 5-minute and15-minute charts is an effective visible reference for figuring out development route. There could also be an apparent development route established for the day, however short-term development modifications will inevitably happen and can be indicated by modifications within the route the transferring common strains type, both pointing up, down or sideways.

One other indicator is that at any time when the transferring common strains on the 5- minute and 15-minute charts begin to slim, coming nearer collectively; this usually indicators a change in route is about to happen. That is usually adopted by them widening once more to type what appears like the form of a
mouth, previous to the change.

The Set-Up

To acknowledge a superb set-up, you could first develop a “really feel” for the market and the market stream.

Return to fundamentals and actually overlook all you’ve gotten realized. Solid apart all your indicators and easily watch the 5-minute bars, their habits, formations and patterns.

Additional coaching is required to precisely and persistently acknowledge the right set-ups. Nevertheless, the principal of the strategy depends on the present 5-minute bar’s incapability to take out the earlier bar (or bars) excessive for a “quick” set-up and incapability to take out a low within the case of a “lengthy” set–up.

With expertise and a excessive diploma of focus in watching the value exercise in the course of the formation of the present 5-minute bar, the fast, short-term route of the market could be decided with an uncanny accuracy.

By observing and counting the variety of instances the present worth bar pushes in it’s try to take out the excessive or low of the earlier bar (or bars), can present a clue as to who’s in management the patrons or the sellers.

For instance, if the value bar ticker pushes and pushes upwards on the prime of the bar, failing to get any greater and is unable to take out the fast, earlier highs after which closes, it indicators that it has hit resistance at this stage and that the patrons are drying up and dropping management. If the patrons have dried up, then the trail of least resistance is down, because the sellers have now taken over management. This can be a time to promote, as costs and the market are happening.

The identical holds true when the value bar ticker pushes and pushes downwards on the backside of the bar, failing to interrupt by means of and getting help, indicating no extra sellers, so the value is more likely to reverse and go up. This can be a time to purchase because the market reverses; positive factors energy and costs begin to instantly enhance

The ratio of patrons to sellers is what determines the market route at any given time. Should you see a potential set-up forming, by no means take your eyes off the bar, or you’ll miss the message it’s supplying you with…you could watch it very intently. As quickly as you’ve gotten made the choice that it’s a set-up, don’t hesitate, don’t wait, get in and take the commerce.

Lengthy Set–Up
To take an extended commerce (purchase), the value bars should be buying and selling above the 10 transferring common line on the 5-minute chart, which signifies energy. Not less than one worth bar should be totally fashioned, closed and sitting above on prime of the road to permit a conservative commerce – 2 bars for a extra conservative commerce.

Brief Set-Up
To take a brief commerce (promote), the value bars should be buying and selling beneath the 8 oving common line on the 5-minute bar chart, which signifies weak spot. Not less than one worth bar should be totally fashioned, closed and sitting beneath the road to permit a conservative commerce – 2 bars for a extra conservative commerce.

Cease Loss
As quickly as a commerce is entered into, instantly place a cease loss order for no matter quantity fits your private danger tolerance. The strategy permits at the least 2 factors. This is essential for peace of thoughts and to restrict your draw back danger.

As soon as your commerce is a number of factors worthwhile, it could be potential to maneuver your cease to breakeven, however care must be taken to keep away from being stopped out too quickly and presumably inflicting you to overlook a superb run.

Exiting the Commerce
This could fluctuate and is usually decided by every particular person’s private expertise, monetary circumstances and danger tolerance. As a comparatively inexperienced, pupil dealer a conservative strategy is to take 2, 3 or 4 factors and button down a revenue when it’s there, though the commerce might go on to provide extra factors. You’ll be able to by no means lose by taking a revenue and within the early levels of buying and selling; taking common, small earnings will construct confidence. Expertise and improved confidence will then can help you keep in for the long term and higher rewards.

Congestion (uneven, chop)
Chop is a really tough market to commerce and must be averted as quickly as you understand it’s on this section. By no means commerce a uneven market. Every time the value bars commerce in a channel between the 8 and 10 transferring averages,
with out significantly penetrating or staying above or beneath them, then the market is uneven. The worth bars traverse up and down between or somewhat past the 2 transferring averages.

Inevitably congestion follows development and development follows congestion, so at any time when the market has gone into congestion, simply be affected person, sit it out and anticipate the following development breakout, it usually supplies a superb transfer.
Should you don’t change at this time – your tomorrows can be like your yesterdays.

Golden Guidelines
• By no means commerce on a day when Greenspan is speaking, or any main information, with out a lot of observe…until you discover ways to commerce that volatility.
• Neglect all that you’ve realized from seminars and books – scrap all your indicators and don’t take a look at 1 or 3 min charts.
• By no means commerce in opposition to the development. ”The development’s your buddy”, so solely commerce with it.
• By no means commerce in a uneven market – congestion.
• All the time place a cease loss order (Use a trailing cease loss).
• By no means attempt to choose tops and bottoms – let the market inform you the place it needs to go.
• Don’t overtrade, 1–3 good trades per day is sufficient.
• Don’t be grasping.
• Don’t have any distractions, TV, phone, individuals and so forth. when you are buying and selling.
• Handle your cash – take all earnings out of your buying and selling account on the finish of every month. This manner your buying and selling account doesn’t develop too giant and could forestall you from taking impulsive, silly trades because of over- confidence.

Good entry in USD/JPY
Connected Picture (click on to enlarge)
Snake eye
Now eurusd did the second good commerce for at this time so i out. its greater than sufficientSnake eye

Danger reward was at all times 1:1 so with some confidence we will work on that o get atleast 1:2 and dont scale back the winrate that a lot.

Connected Picture (click on to enlarge)
Snake eye
Large Thank’s to :  Snake eye   Ilkh

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