In my previous publication "How to create your own theory on rate movements" I elaborated on possible strategy by analyzing EUR/USD and GBP/USD pairs movements during specific periods. For analysis 10 year, 2 year and 9 months periods were used. It was very rough estimation on possible entry trades. In this publications I will go deeper in details and present exact formulas for calculation for trades entry points, take profit and stop loss levels.
It should be noted that this strategy is under development and is not suitable to use for real trades.
2. Rate movements levels and duration
3 period max/median/min strategy uses several base points. One set of it are max, min and median pair values over specific period. But also there are other quite important points for determining where to enter trades and with which parameters. In the table below input variables for calculation of trades levels and values are given:
For input to the formula all variables must be calculated based on certain pair chart. Now we will use NZD/USD pair for calculation of all needed variables.
3. Variables for NZD/USD possible trades calculation
First of all we will fetch required variables fr…