Usoho Ichi High Low Forex Trading Strategy
“Choose your battles wisely. Battles not fought will not be lost, only battles not worth fighting." This quote may seem like a good life lesson, but it also applies to trading.
The forex market is full of opportunities, but also full of potential dangers. Traders can change their fortunes quickly when trading in the forex market, but people can also lose their fortunes if they make the wrong decisions.
Due to the many opportunities that the forex market offers in a trading period or trading day, many traders are tempted to trade every opportunity the market has to offer. However, not all trading setups are worth trading. Some are easier to trade with a higher probability of winning, while others have lower potential rewards and lower probabilities.
Trend following strategies are some of the easiest trading setups to trade. It usually has a higher win rate because the trader trades with the trend. At the same time, traders also have the opportunity to earn bigger profits because sometimes the trend can last longer than usual.
However, many trend-following traders even trade in non-trending markets using their trend-following strategy. This causes them to lose more often than they would like, even though this is a trading strategy that is said to have a higher probability of winning.
The Usoho Ichi High Low Forex trading strategy is a trend following strategy that helps traders filter out untrending market opportunities. This helps traders avoid lower probability trades and only trade with better odds.
Usoho Ichi is average
Usoho Ichi Average is a special moving average based on the Ichimoku Kinko Hyo indicator. Like the Ichimoku Kinko Hyo indicator, the Usoho Ichi Average represents a complete trading setup using a single indicator, using moving averages to show short, medium and long term trends and price action.
The difference between the Ichimoku Kinko Hyo indicator and the Usoho Ichi average is how the moving averages are plotted. Ichimoku Kinko Hyo lines are based on price averages, while Usoho Ichi averages are based on modified moving averages.
The Usoho Ichi average consists of five lines. The chalk line represents price action and was pushed back several periods, such as the Chikou range of Ichimoku-Kinko-Hyo. The red line is the Tenkan MA, which represents the short-term trend, while the blue line is the Kijun MA, which represents the medium-term trend. The Senkou MA consists of two lines that represent the long-term trend. The MA Senkou is sandy brown when the trend is bullish and thistle is when the trend is bearish.
A trend reversal signal is generated whenever the Tenkan MA and Kijun MA lines cross. However, the resulting signal should be filtered based on the trend direction of the Senkou MA. Apart from that, traders should also watch if the chalk line intersects the price action causing the chart to look messy. This indicates that the market trend is not strong enough to warrant a valid trend after entry.
Gann HiLo Activator Bar
Gann HiLo Activator Bars are special momentum indicators that help traders see the direction of the immediate momentum or short-term trend.
The Gann HiLo Activator Bar indicates the direction of the momentum by overlaying the bars on the price chart. This bar changes color depending on the moving average price. The bars are blue when bullish momentum is detected and red when bearish momentum is detected.
Traders can use a change in bar color as an entry signal based on a short-term trend or momentum.
trading strategy
This trading strategy is a trend-following strategy that uses the area between the Tenkan MA and Kijun MA lines as a dynamic area of support or resistance. A trade is executed whenever the price retraces and bounces off this area.
To trade this strategy, the Tenka MA, Kijun MA, and Senkou MA lines should be stacked sequentially, which indicates that the market is trending. In addition, the chalk line representing the price movement backwards several periods should not cross any price action or line. This will indicate that the trend is moving quite strongly.
The Gann HiLo Activator Bar is used as a trigger for the actual trade entry after the retracement towards the Tenkan MA and Kijun MA lines.