This strategy works by detecting breakouts in EURUSD at times when volume is increasing sharply. Usually this coincides with the open of London markets.
You may have seen there are countless articles on the web declaring engulfing strategies are a sure bet and offer high probability trade opportunities. But does this approach really work? In this article I will do a thorough analysis of the data to prove if this method really stacks up.
The classic way to trade the Keltner channel is to enter the market as the price breaks above or below the channel. This is simple crossover and is a typical breakout strategy.
This momentum strategy is very straightforward. All you need is the Bollinger bands indicator and to do some basic checking of chart candles. It trades on chart patterns that display signs of pending momentum – that is upward or downward acceleration in price.
All serious money managers know that the smart money is made not when the market is stable but when the market goes through a sudden state of change. Take for example, the end of a bull run or the imploding of an asset bubble.
Straddle trades are so called because they have two separate legs that sit either side of a given price level. More often than not, straddle trades are used to trade breakout events.