Forex entries with the THD indicators is very similar to the binary options signals strategy. Using two timeframes, the trade should have two ATRs in the same direction and the Stochastics should confirm your entry (with a reversal bar).
Forex Entries with THD Indicators
The forex entries using the THD indicators is almost identical to the binary options signals strategy. This is the same technique that Gail teaches traders in both the Silver and Diamond Package training.
First, price must be at an ATR and there must be at least two ATRs in your favor (two above or two below).
Second, the Stochastics on the two timeframes must confirm the entry and cannot be contrary to the entry. In other words, if you are going short, the Stochastics cannot be oversold or, if going long, the Stochastics cannot be overbought.
Third, if trading the spot forex market, a reversal bar is needed to confirm the entry. If trading binary options, since you are limiting risk on entry, then the reversal bar is not as important.
The binary options signals strategy will typically provide more entries than entering on spot forex simply because:
- Risk is limited on entry
- A large price move is not required because the commissions are much lower
- Price simply needs to expire in our favor (making trading slower markets easier than if trading spot forex)