فوركس ساتو

BASIC STRATEGY - VARIATION 1
FOREX Surfing Draft
Remember that we are now looking at Micro Trends viewed in 5
Minute candle charts, or for an even clear view 1 Minute candle
charts. We’ll discuss how to specifically recognize good Micro
Trends later in this eBook.forex sato
This variation of the basic strategy is use primarily when your
swing, or wave, is 20 pips or less (but no less than 5 pips – thus if
your swing is between 5 and 20 pips). How do you determine this?
You simply look at the price of the last significant low, and the price
of the last significant high, and if the difference is 20 pips or less
then you know that this swing is a candidate for variation 1.
For those of you who don’t know how to check for your highs and
lows on your chart then this is what you do. Simply move your
mouse cursor over the candle in question. Somewhere on the screen
(usually near the bottom left corner) it will display the High, the
Low, and the Closing price of that particular candle.
While the price is zigzagging up, down, up, and back down there
will be periods of time that the price has dropped back down below
the last high, but of course still above the last significant low.
Your charts will basically look like this:forex sato

When it has dipped down 3 or more pips (preferably more) then you
can place an “Entry Order” at the price of the last high (plus your
broker’s pip spread - see below – will ignore this for now). An
“Entry Order” differs from a “Market Order” in that with a “Market
Order” you are jumping into the market at the current market price.
With an “Entry Order” you are telling your broker to enter you into
the market if/when the price hits your predetermined set price.
You then place your stop at the price of the last low. With the basic
strategy you place your limit for preferably the height of the wave
(1:1 risk-to-reward ratio), or you can do 20 pips beyond your entry
price. Then you just leave your trade alone.forex sato