|Welcome to currency trading with Profiforex!
Let's impose two moving averages on the chart.
|The first moving average will be calculated on the basis of the bars' minimums.|
|The second moving average will be calculated on the basis of the bars' maximums.|
|As you can see, the periods of both moving averages are equal to three.|
Larry Williams's strategy is to buy at the price of a three-bar moving average calculated on the basis of the bars' lows, and to close the position at the price of a three-bar moving average calculated on the basis of the bars' highs.
|The signals for sell deals are opposite to the signals for buy deals. Please note that we open positions only in the direction of the trend.|
We tick the points of the chart where the trend changes its direction.
These are the moments when we switch from sell deals to buy deals and vice versa.Now let's point out the entry points on the basis of three-bar maximums and minimums.
If the trend turns upward, we buy on the line of the three-bar minimum,is torn up, we buy on the line of a 3-bar minimum,fix profit on the three-bar maximum and wait for a rebound to the three-bar minimum.
Everything is simple.Short-term sell deals are made in the opposite way:When the trend turns downward, we sell on the three-bar maximum and fix profit on the three-bar minimum.
The method is quite easy, but it requires self-control and strict adherence to your strategy.