If you are looking for a reliable and effective forex trading strategy. And a bit confused on complex terms, and the signals? Let us help you with a strategy that is not only easy, but it is also very powerful. You can also use it in order to determine the best entry points, and how to make a profit. This strategy is known as the “bar code” strategy.
The first thing you have to do is to prepare for your card. Sign in to your Olymp Trade account, and decide which tool you are going to have to trade up. Now, we’re going to go to all the lectures and we are looking for a demarker. The barcode on the strategy is based on a single indicator.
The basic principles of the DeMarker indicator
DeMarker (DeM) was created by, Thomas Demark, a well-known technical analyst. Of the oscillator, and to compare with the minimum and maximum rates in the current cycle, as well as the prices in the past. You can also use it in order to determine the direction of the market as oversold and overbought zones.
There are two main levels of The pop-up window. They are equal to 0.3 and 0.7. The first is that the asset is oversold, and the second shows that it is raised up. Exceeding these levels is a signal that the trend will soon reverse.
Set of Instagram icon for the purposes of the bar code strategy
You will have to make a difference in the use of The bar code strategy. You can do this by clicking on the pen icon in the monitor window.
Set this parameter to 1. Click to select the display type, click the drop-down menu, and then click on it to select ” Histogram instead of lines.
How to demarker a bar code
The indicator will remind you of the one. The red bars are higher than the level of less than 0.3 of a point in an oversold zone, while the green bars above 0.7 indicating overbought conditions.
The Instagram indicator is displayed as a graph, and it looks like a bar code
Trading Forex with a bar code Strategy
The intersection of the major levels of the trend reversal signals. It is set in the period of time up to 1 minute for the chart, see below, as you will need to open a trading position.
In a nutshell
Check out The indicator bars. Wait until you get three consecutive green bars above the 0.7 level. The fourth belt in red, and below 0.3 in the region.
A clear signal for the opening short position,
In addition, the red indicator should be read in conjunction with the red candle on the price chart. You’ll now be able to open a short position.
Bar code signal, in order to go on a trip
I’ve come a long way
If you want to open a long trade, you need to look at the three red dots on the bottom of the 0.3 level, in The pop-up window. The following bar should be green and will be in the overbought zone above the 0.7 level.
In addition, the fourth green, The bar should be in line with the green of the price bar on the chart.
In a clear signal to open a long position
More to know
A barcode is a strategy that can provide you a lot of opportunities for the market during the day. Using a good money management strategy. Do not invest more than 5% of the total share capital in the market. Aim for about 10% to 15% of the daily profit and stop, you lose 30% of the total share capital.
Bar code strategy, it has a very high success rate. And, as you can see, it’s very simple and easy to use. Set the desired settings for the DeMarker indicator, and then wait for the signal. Then, depending on the situation, we will have a long-term or short order.
We would like to invite you to a free trading account with “mount Olympus”. Check out what the strategy is working and after a short period of time, you will be able to earn a profit on a live account.
Thank you for reading till the end. Let us know about your queries in the comments section.
May you fly with colorful results