For a forex trader to succeed, he needs to develop a trading strategy through a series of successive tests until proven successful. We are also different in our personal features and therefore we may discover after a period of trading in the Forex market patterns of trading that are radically different, although they are all profitable. When you first begin your career as a trader, you may find it difficult to create an appropriate forex trading strategy before you can master your trading assets. Although many do not recommend this way, you can try to copy a successful strategy for another trader, at least for a while.
Of course, most successful traders are those who have proven to be different in trading, especially those who have worked with investment banks and hedge funds. A good example is Peter Krauss, who has worked for 22 years with Goldman Sachs. Peter discovered the DIBS trading method, which is an abbreviation for the Daily Daily Bargain or Daily Inside Bar Setup.
How the strategy works
This strategy fits primarily technical analysts, though not necessarily necessarily where everyone can use them. The main principle of Nova APP Scam system is to buy the asset during the day of its ‘rise’ and sell it on its ‘day of decline’. By applying to the Forex market, the asset in that case would be a currency.
The following question may arise: How do we know that today is the day of the ‘rise’ or ‘fall’ of the currency pair? You can simply return to the opening price of the day at 6:00 GMT and compare it to the previous closing price. To do this, you first need to define the ‘inner candle’, a pattern that appears on the Japanese candlestick chart where the last candle is surrounded or ‘swallowed’ by the previous candle, as shown in the illustration below. This model reflects a situation of hesitancy in the markets, which gives a good opportunity to buy or sell when the market turns into a bullish or decisively bearish direction.
After setting the start of the trading day at 6:00 GMT, go to the 1-hour timeframe and search for this model throughout the day. As we have already noted, this model reflects a state of hesitation, so you will also need a supportive indicator to help you determine the direction of the market, and in this regard the moving average line may meet the target. Add the simple moving average to the Forex chart to give you signals on the direction of the market – if the price is above the moving average line, Nova APP Scam Indicates a bullish market, and vice versa.
Now that we know the direction of the market, the internal candle model will tell us the ideal options for entering and exit positions. Once you have closed the ingestion candle above or below the SMA line, place a buy or sell order, and do not forget to follow risk management rules. In the case of a purchase order, the stop loss level should be placed below the body of the ingestion candle, and vice versa for the order of the sale. The profit taking level can be adjusted at a 1: 1 risk rate. If you have the audacity, you can also place a stop order to help capture potential gains from the entire trend.
Precautions to be taken
Make sure that the ingestion candle is completely surrounded by the previous candle – this includes the body and candle shades, because that is the only way to make sure there is a state of uncertainty and uncertainty in the market.
Candles should trade above or below the moving average, not on the SMA line itself. The moving average line should point to the market’s direction, so the presence of the candle on the line loses the function and even increases the uncertainty.
Check for any news that may affect the currency pair you intend to trade, as any important news can lead to a completely different direction and thus take the strategy out of its reach.
Advantages of DIBS method
Peter Krauss recommends using the DIBS method on a one-hour frame, but the same procedures can still be applied to most other timeframes, including 15 minutes, 30 minutes, 4 hours, as well as daily frames. However, when using this method on larger time frames such as daily and 4 hour frames, you should consider changing the time setting from the opening of the day at 6:00 (GMT) to the opening of the week on Monday at 6:00 (GMT) . This helps make the strategy more flexible and versatile to suit all types of traders, whether from swing traders who open long positions or traders who are looking for quick profits.
In addition to the flexibility of the strategy, the system is also very precise. Of course there is no 100% profitable strategy, and you should realize that anyone claiming it is just a crook trying to trick you. DIBS’s strategy, however, is highly accurate most of the time thanks to its ability to monitor price movements in the market when large players begin to trade and take advantage of them, while also making it possible to make big profits from rapid changes in price movements.
Another advantage of Nova APP Scam strategy is that it is easy to monitor the technical form as soon as the trading day starts, usually within 6 to 9 hours. The trading date set for this strategy, 6:00 GMT, precedes the start of the London session, intersecting with the Asian session and later the US session. Traders usually maintain early trading trends that appear throughout this day. As we all know, most traders tend to follow the herd, and this famous feature creates more sustainable and therefore more profitable trends.
Judging DIBS strategy
Finally, it is important to remember that the DIBS method remains subject to the influence of economic factors and individual interpretations as is the case with any other strategy. This is not to say that you should avoid using it, but we recommend that you try it first on a demo account before you start using it on real money. This will provide you with the opportunity to discover time frames and currency pairs that achieve the best results with this method and thus maximize the profitability of your transactions.
In conclusion, all the traders who have used this strategy refer to its great benefits and describe it as a win in the aggregate; they also praised the ease with which it enjoys. However, most traders have yet to hear about this strategy, which some see as somewhat ambiguous, but the results speak for themselves. In addition, all trading platforms provided by Forex brokers allow this strategy to be used without any hindrance.