Reversal trading strategy

This strategy is quite simple and easy to use. If the risk management rules are observed, the strategy can yield good profits: up to 200-300 points.

In order to define reversal points and entry points on the chart, it's necessary to use the ZigZag indicator. The indicator's period must equal 150 to reduce the number of false signals. An 18-period moving average will also serve as additional confirmation and a filter for opening trades.

This trading strategy applies to the following currency pairs: EUR/USD, GBP/USD.

Recommended time-frame: H4

Long positions should be opened once the ZigZag indicator has reached the lowest value of the candle and the price has broken the 18-period moving average from below. Recommended Stop Loss and Take profit levels amount to 50 points and 150-200 points, respectively.
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Short positions should be opened once the ZigZag indicator has reached the highest value of the candle and the price has broken the 18-period moving average from above. Recommended Stop Loss and Take profit levels amount to 50 points and 150-200 points, respectively.
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