This forex trading strategy works so well that I couldn’t believe it at first! It’s easy to learn and implement. You’backtest trading strategy software be amazed at the results!
Today, I want to share a forex trading strategy with you, called WhaM. This trading strategy is so easy to use, even your parents would be able to trade it. I reckon even your dog could trade this. This trading strategy is not created by me. This is my interpretation of the system and how I currently trade it.
It’s one of the strategies I’m actively trading and it’s by far the one with the least moving variables. I don’t even use candlestick charts for this strategy! And most importantly: it just works incredibly well. Don’t worry, I’m not selling anything.
Everything you need to know to adopt this strategy is right here, in this article. By sharing this strategy for free, I’m hoping that some people will benefit from it. I also want to show that trading systems don’t have to be complicated and trading consistently and profitably is absolutely possible, given proper rules. WhaM, a trading system without indicators or candlesticks. If you can read, you can trade it. Let’s get to it, shall we?
The WhaM forex trading strategy is a strategy that uses specific chart patterns as the base for low-risk entries on trades with a high probability of success. Specifically, we will look at double tops and double bottoms that look like the letter M or W. I trade it on the 4H chart, but it also works on higher and lower time frames. When trading this system, you will want to start out with clean line charts. The reason we use line charts and not candlestick charts is very simple: it allows us to focus on the things that matter. We want to see the patterns as clearly as possible.
While candlestick charts provide a lot of useful information, we won’t initially need this level of detail. At some point, it is helpful to switch to candlestick charts, since line charts will not always show us how far the wicks of candles reach. In order for us to determine whether to enter, the stop loss and the take profit, it can be useful to switch to candlestick charts. No indicators are needed for this trading strategy. So let’s get to it! As said, we look for two types of chart patterns: double tops and double bottoms.
See the clean W shape? That’s exactly what we’re looking for. If you check your charts, you’ll see that this pattern happens fairly often. If we would have set a pending buy at the nose of the W pattern, what would have happened?
Now, don’t go jumping into every W and M pattern you see on your charts just yet! There are a few things that are important when we’re looking for the best W and M patterns setups and I’ll get to that in a minute. And we have a winner! Our pending sell order got triggered when the price retraced temporarily, only to plummet down and take out our take profit level. At this point, I’d like to invite you to switch to line charts and have a look at your own charts. Try to find similar W and M patterns and see how the price behaves afterwards. Does the price often return to the nose of the pattern?
Is there often a reaction once the price reaches this point? Are there also W and M patterns that don’t work? What do you think is important when looking for good W and M setups? Why would a simple thing like the shape of some letters actually work as a profitable forex trading strategy?