This article introduces you to a trading strategy that doesn’t require volumes, technical indicators, and price patterns. All you need to do is to be attentive to the price action. Welcome to the Imbalance tutorial.
Counter-Trend Impulse Strategy
2023-04-17 • Updated
Counter-trend strategies are always the most dangerous but also the most profitable. We are pleased to present an excellent counter-trend strategy for working in any market and with any assets.
Indicators: Bollinger Bands and RSI with the default settings
Risk management rules: Fixed trade volume with 0.1 lot.
Rules for a long entry
- Wait for the price to move out of the lower Bollinger Band and start to move back in. The more the price moves out of, the lower Bollinger Band, the better.
- Simultaneously, the RSI indicator line must cross its lower boundary upwards (enter the working area from the oversold zone).
It is recommended to use the Stop Loss at the level of the nearest local minimum before receiving the signal.
Rules for a short entry
- Wait for the price to move out of the upper Bollinger Band and start to move back in. The more the price goes beyond the upper band - the better.
- Simultaneously, the RSI indicator line must cross its upper boundary downwards (enter the working area from the overbought zone).
It is recommended to use a Stop Loss at the level of the nearest local maximum before receiving the signal.
Rules for a Take Profit
- The choice of Take Profit is possible based on the ratio 3:1, i.e., a trade should bring 3 points of profit for one lost profit point.
- The trade can be closed before the Take Profit when the Bollinger Bands midline is reached.
When looking for signals, paying attention to how the price leaves the level of the upper or lower Bollinger Band is essential. Ideally, if the price goes the band completely before the signal appears, such a movement is strongly impulsive, i.e., there is a kind of compression of a spring, which uncompresses later, taking the price in the opposite direction.
Trade with FBS using Bollinger Bands and RSI and become a true professional!
How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.