Trading a 1% pricing strategy can be accomplished with any currency pair however the time frame should be daily.
One of the strategies which give traders a chance to trade along with the trend is the 1% strategy for forex price action. This strategy has a rule which says that the stop loss should be 1% lower or higher than the entry price and the take profit or exit is defined if the trend reverses by 1%.
How to Trade a 1% Price Strategy:
This strategy can be used with just about any currency pair and the time frame used is the daily time period. The strategy is played out on a candlestick chart with only 100 EMA indicators being used as the technical tool.
A buy signal happens when the previous daily close is 1% lower than the current daily close and the price is moving above the 100 exponential moving average. The stop loss should be placed exactly 1% below the price that the trade was entered. The trade is then followed and only closed out when the current daily close is 1% below the previous daily close or your stop has been hit.
In the example on the NZD/USD daily chart above an entry signal was given at the 0.7500 price on the candle where the close was 1% higher than the previous close. The stop loss was placed at the price of 0.7425 which was 1% below entry price. The trade was allowed to run until a candle with a close 1% below the previous candle appeared. This was at a price of 0.7720 giving the trade a profit of 220 pips.
A sell signal happens when the previous daily close is 1% higher than the current daily close and the price is moving below the 100 exponential moving average. The stop loss should be placed exactly 1% above the price that the trade was entered. The trade is then followed and only closed out when the current daily close is 1% above the previous daily close or your stop has been hit.
In the example on the NZD/USD daily chart above an entry signal was given at the 0.7775 price on the candle where the close was 1% lower than the previous close. The stop loss was placed at the price of 0.7850 which was 1% above entry price. The trade was allowed to run until a candle with a close 1% above the previous candle was formed. This was at a price of 0.7500 giving the trade a profit of 275 pips.
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