Equal H/Ls Strategy
Here's a trading strategy cheat sheet for fluid trades traders using Equal Highs and Equal Lows:
Last updated
Here's a trading strategy cheat sheet for fluid trades traders using Equal Highs and Equal Lows:
Last updated
Understanding Equal Highs and Equal Lows
Equal Highs: Multiple price peaks reaching approximately the same level, indicating potential resistance.
Equal Lows: Multiple price troughs reaching approximately the same level, indicating potential support.
These patterns can signal potential trend continuation or reversal.
Identifying Equal Highs and Equal Lows
Use price charts to identify at least two peaks (Equal Highs) or troughs (Equal Lows) at similar price levels.
Mark the Equal Highs and Equal Lows levels on the chart.
Look for patterns that may indicate a potential breakout or bounce.
Entry Strategies
Equal Highs (Potential Bearish Signal):
Look for a break below the Equal Highs level, indicating a potential downside move.
Equal Lows (Potential Bullish Signal):
Look for a break above the Equal Lows level, indicating a potential upside move.
Exit Strategies
Set a target profit level (e.g., 1-2 times the risk) and exit at least a portion of your position.
Use a stop-loss order to limit potential losses (e.g., above the Equal Highs level for short trades, below the Equal Lows level for long trades).
Risk Management
Start with small position sizes (e.g., 0.5-1% of your account per trade).
Use stop-loss orders to protect against false breakouts or reversals.
Remember, trading involves risk, and it's essential to practice with a paper trading account before risking real capital. Always start small and gradually increase your position sizes as you gain experience and confidence in your trading strategy.
