Forex Trading Strategies

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Forex Trading Strategies


The Bounce Trade in a nutshell..

Out of all the Best Forex Trading Strategies, The Bounce Trade strategy is the easiest FXMoneyMap Trading Pattern that is regularly traded by many Traders with a reported a success rate of as much as 83.6% from a recent survey. This type of trade carries less than 10% risk and is guaranteed to give you 10 pips of profit. These types of setups occur most days, and occurs several times for you to capitalise on the trade.


What you need?

As for most of the FXMoneyMap Forex Trading Strategies For this Trade you will need a Grid, 1 Min Chart and 60 Min Chart.

Criteria..

The Criteria is a 4 Column Support with at least 1x 60 Min MA Green Box (L1 or L2) if not 2x Boxes (L1 & L2), close to a 20 point Gap between the point at which the price came from and is going from (difference between entry and exit), with a set 10 pip stop loss and 10 pip take profit. See the illustrated example below.



Bounce Trade Sell Example on EUR/USD

	Figure 1 - Setup identified	Figure  2 - Two mins later Setup is at Entry point
		Figure  3 - Seven mins later and price level at Target Exit

 

EUR/USD Bounce Trade Explained

The EUR/USD Grid in Figure 1 identifies a Bounce Trade Sell Pattern. If you look Figure 4, It is showing that the 1 min chart shows a long move up from 1.3183 and is continuing with a strong movement upwards most likely reaching 1.3225+... so why is this a sell grid?

There is no doubt that the price will reach a peak and there will no doubt be a retracement (price coming back down - before possibly continuing to go up again)


Identifying the Setup

So how do we find this point? Using the EUR/USD Grid in Figure 1 you can identify a clear level of resistance level across 4 time lanes - 3 Fibonacci color band overlays in the 1, 5 and 15 min time lanes (shown by the numbers and different shades of blue) and it also has one 60min L1 MA Red Box where the price is likely to bounce from. You can see that this is likely to re-occur as it has happened earlier in Figure 5 (price bounced off the L1 MA (Green Box).

Using the Grid and the 1 and 60min charts in conjunction we have identified a sell grid. Now to check off the criteria...


Figure 4 - EUR/USD 1 min Price action


Figure 5 - EUR/USD 60 Min Price Action




Yes, it meets all the Criteria:

• It has a clear entry around the 4 Column Resistance at around 1.3225 to 1.3228.
• It has 1x 60 min Red box at 1.3225 and also has some fib levels shown in the 1, 5 and 15 min columns around 1.3227 (band colors changing).
• It has 1 min target Exit at 1.3207 where the price has come from and likely to retrace back down to this level before it either moving up from this or continue to go down further.
• There is a big enough gap as there is an 18 point gap between 1.3225 down to 1.3207.

 

Price Action Approaching Entry Point

Just two minutes after the Screenshot from Figure 1 was taken, Figure 2 Shows that the price is hitting the 60min L1 MA Red Box and is likely to bounce off this level. You should Sell EUR/USD as it seems way overbought and the price action undoubtedly respects this identified level of resistance and starts to move back down for a retracement. The retracement is likely to continue back to the 1min L1 MA Green Box.

Price Action Approaching Exit Point

Another Seven minutes after the Screenshot from Figure 2 was taken, Figure 3 Shows that the price has passed the 1min L1 MA Red Box because our set target was the 1.3207 L1 MA Green Box shown on the Grid in Figure 1. Therefore now as we have approached 1.3207 and come further down now it is good time to exit as there is now also a 5min L1 MA Green Box approaching and it can act as a Support where the price may bounce off this before it continues to retrace anymore (therefore to lock in guaranteed profits you will exit at this level).

The Outcome

This Trade was taken live by An FXMM Trader, who achieved the following outcome...



Entry: Sold EUR/USD @ 1.3225
Exit:: Bought Back @ 1.3206
Size:  2x Standard Lots

Profit /Loss in Pips: +18 pips on 2x Std Lots (effectively 36 pips)
Profit /Loss in Monetary Value: $360
Trade Duration: 9 Minutes 04 seconds

 

The Results

See For yourself this trade and more examples from our other Forex Trading Strategies are available below in video format. Results from more trades using the FXMM trading Patterns really work. We publish live updating Trading History via Trading Statements and Trading Log Links to show the profit/loss for our Forex Trading Strategies that we trade everyday, see below...


See  Official Trading Statement   |  Trades Log


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