Using a trading tactic called «Elephant and Pug»

  • Sep 21 2021
  • by
  • Analyst AZA
Using a trading tactic called «Elephant and Pug»

Using a trading tactic called «Elephant and Pug»

Despite the wide range of trading strategies in the forex market, many of them are quite difficult for a trader to understand, and especially a beginner who has a hard time learning difficult tactics, which have a large number of indicators, which require habit and detailed study, a huge amount of time and energy costs. ...

The strategy with a rather humorous name «Elephant and Pug» is aimed at those who do not have enough time and opportunity to sit at the computer screen every second and monitor market charts, analyzing them in detail. Also, the use of these market tactics will be relevant for those traders who prefer to interact with medium-term market strategies: they have good signals, and a number of them are famous for acceptable risks and, at the same time, have good profitability at the exit.

This Forex tactic is based on the technique of Japanese candlesticks and is focused on daily charts, and therefore, you do not need to spend a lot of your free time and energy on it. It is noteworthy that indicators are not included in the tactics. It is possible to perform price analysis of the movement, to confirm the effectiveness of entering the exchange, based on the use of such tools as candlestick patterns and the following characteristics: - color property; - volume characteristic; - based on the sequence.

Trusting the statistics of the forex market, the experts concluded that most of the trading operations that were opened based on this tactic, we can talk about potentially successful results, and when using the deposit funds acceleration scheme, you can get an excellent income at the exit.

So, the distinctive feature of this strategy is 1) using the D1 time interval; 2) it is recommended to use those currency pairs that include the US dollar; 3) the strategy does not imply the presence of indicators: in a situation where working with instruments is extremely important for the player, you can use the MACD indicator, but you can safely do without it. Purchase transactions include the following information: to find the optimal entry opportunity when working with this strategy, it is necessary to analyze the situation with the chart: after the Doji, a bullish candle should form - a large candle body, and then another candle should be created, but with a smaller body (relative to the previous one).

The parameters of the candlestick should be in the area of ​​60 points, but in no case should not go beyond this number. It is quite logical that the name of the tactic is associated with the bar patterns - large and smaller candlesticks. Focusing on all the creation rules, you can close candle number two, and then proceed to open a deal - a buy trade. Setting the stop loss will be based on the current price, but the order should be in the range of 35 to 65 points. The use of taking profit must be excluded. When opening a new bar, after the implementation of the signal scheme, you need to enter the market, and upon completion - exit the exchange. Before selling, you need to have the following information: When implementing a short position, or selling, one should strive to follow the mirror recommendations.

To enter the selling market, the trader should wait for the appearance of a clear bearish candlestick (following the bullish daily). And then, the player should wait for the appearance of another candlestick - the one with a smaller volume - its value can reach up to 60 points. As for the stop loss, its value should fluctuate from 35 to 65 points: the order should not be lower than the value of the opening of the second bar. You can close a deal at the end of the trading day, without taking into account the market value.

The main advantage of the tactic is that it does not require the use of indicators for its implementation, since the technique is based purely on Japanese candlesticks. At the same time, the player perceives the market by itself, without taking into account the work with additional technical analysis tools.

With the minimum time spent, the tactic gives a good profit at the exit!

See for yourself!

The strategy with a rather humorous name "Elephant and Pug" is aimed at those who do not have enough time and opportunity to sit at the computer screen every second and monitor market charts, analyzing them in detail.


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