High-Low Hourly Strategy
September 18, 2013 | By Chris Morton
This strategy is based on support and resistance lines use. In addition to these lines, the strategy does not involve the use of any indicators or oscillators. For the trading it is only necessary to set a chart for necessary currency pair on the hourly timeframe.
Once the chart is set, it is necessary to determine the trend in the market and impose a support and resistance lines on the chart by the highs and lows of prices in the past. After that, we just have to wait until the price breaks through the support or resistance. Often, the market price after breaking the support line comes back to the line and bounces from it, thus starting a new trend. Therefore, a good signal for trading opening occurs when the price is testing this new line, which became for it as a line of resistance.
In this situation, it is advisable to buy a put option with expiration term of one hour. The same action is to be done when the price breaks through the resistance line and vice versa.