Jarroo strategy is a great trading strategy for long time investment plan. Today, I will show how to use these strategy for trade in forex market. This strategy fit with all types of instruments. And basically work with D1 (day candlestick) timeframe.
Instruments: the strategy fits all instruments.
LCS=lowest close of support – the level the price could not close below.
HCR=highest close of resistance – the level the price could not close above.
PBT&CA=price breaks through & closes above – the level the price breaks out and closes above.
PBT&CB=price breaks through & closes below – the level the price breaks down and closes below.
Jarroo levels are determined as follows. First, we look for swings i.e. local lows and highs in price movements. We then highlight those lows/highs that are made up of at least two candles with an identical close/open. Note that in the strategy, levels are drawn through opens/closes.
After the Jarroo level was broken through and the price has closed above (for buys) or below (for sales) this level, a pending buy/sell order is placed.and dont miss to put Stop-loss should be moved beyond the opposite point (Low or High) of a candle where the breakthrough happened. If it appears too close to the opening point, it can be moved beyond a High or Low of the previous candle. To determine Take Profit we use the nearest support/resistance levels, a Stop-loss distance multiplied by 2 or 3, or shadows of previous candles. After reaching the closest target or a target that equals twice the distance of Stop-loss, Trailing Stop is activated. If the candle closes below/above the level (against our position) where we entered, do not wait for Stop-loss to trigger and exit the position.
The DCC (Daily Close Confirmation) rule: For a more conservative position opening, the following rule can be used. When a “signal” candle that had broken through the level has formed, we wait for the next candle to close before placing a pending order. Only after this next candle closes above/below the level without breaking it in the opposite direction, the pending order is placed.
This strategy is an attachment to work.Make sure to share with your near and dear Forex Traders.
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