Price action traders believe that market moves entirely depend on the psychology of the majority of traders. Price Action trading tools are not so numerous as technical indicators, but this system includes quite unusual trading strategies. One of the price action trading strategies is the Sniper trading system that was thought to be one of the most popular in the commercial segment in Price Action describes the characteristics of price movements.
The founder of technical analysis Charles Dow considered that a price chart itself contains all the necessary information. The price action already includes political, economic and psychological factors, so the trades do not need to read much of analytical information. Everything is already reflected in the price chart, so, you only need to analyze the price moves, and technical indicators are useless here as they do not have flexibility swift response to the market change.
In the short term, the market is chaotic, so, the method is effective in long-term trading or as the basis of day trading strategies. The theory is based on emerging price chart patterns that reflect the sentiment of the majority. Here, the focus is on the trader psychology who in many cases behave in the same way.
The system works when the market is trending, so, the trader may follow the majority. One will hardly earn in long-term flat trend, taking into account the swap costs. Price Action tools are mostly price chart patterns regularly emerging chart formations , support and resistance levels, having different variations of constructing Fibonacci, round numbers and so on.
The comparison of the Price Action system and indicator trading may be represented as a table:. It combines non-indicator analysis with any other trading system. Price chart patterns may be validating the signals delivered by the indicators, one can set pending orders according to important levels. There are problems with combining multiple trading systems.
For example, if you add multiple indicators of a different design to the chart, it will only increase the number of false signals. There is a natural question. If you use indicators to discover price patterns and levels, will this trading strategy refer to a non-indicator Price Action system?
I suggest we discuss this idea in the comments. The Sniper strategy Forex is a Price Action strategy. The idea was suggested by Pavel Dmitriev about 10 years ago, and there are comments that this is just another upgraded version of such trading strategies as Meat, Meat 2, and Alive System. If you want, you may find more information on the Internet and share it in the comments. A remarkable fact. When this strategy was released, hardly anyone knew about Pavel Dmitriev.
But everything changed when there were created dozens of groups in social media, accounts on trader forums, where the Sniper strategy was being actively discussed. To attract beginner traders, the broker-kitchens and so-called business coaches offered a course teaching the strategy for free or with a significant discount, which increased the interest in the strategy, and the hype around it.
And a training course here was really needed. Common trading based on important levels was hidden so intricately that it was quite hard to understand it. It is not clear why should you apply a tactic that has so many difficult points and you should spend time studying its basics. There many simple trading strategies for beginners, why should one buy a complex one for big money?
The answer is a professional marketing campaign. The Sniper trading strategy breaks some of the Price Action principles in some way. It is designed for short, 5-minute intervals within a day with a short range of profit for one trade, so the strategy can be referred to as scalping in a way. To disguise the classical theory of technical analysis that is the basis of the Sniper strategy, the developer introduced his own terminology. Bank Level BL is the level where the previous daily bar closes.
The time is Greenwich Mean Time. Simply put, the candlestick that marks the key level breakout and the start of the opposite move. Impulse levels IL are the support and resistance levels that frame a flat in the M5 timeframe.
You enter trades only in the short-term timeframe. The trades are entered at the extreme price levels hit on the previous days, so two charts are used for the analysis. The bank levels are used to determine the entry points, these are the strong levels of the previous days where experienced traders enter the highest number of trades. The profit size before the partial profit taking is the same as the stop loss size. If after the partial profit-taking, the price will reverse and hit a stop loss, the trade will break even.
Step 1. The strategy developer suggests you start to construct the levels based on the so-called Bank Level, which means a three-hour shift before the day close relative to He claims that a point of And because banks are the primary market-makers and the liquidity providers, their trades may mark a strict price level. On one famous investment forum, I saw the results of interesting research. It reads that the trading systems operating on the timeframes of H1 and longer are not sensitive to the different GMT of brokers.
Step 2. The bank level is just a reference line, while the primary limit levels are the price extremes of the previous day. The framework graphically looks like this. The trader should draw the levels along with the high and the low of the previous day yellow lines in the figure. Once the price breaks out one of these levels next days and reverses, one should enter a trade. In this example, it is a buy trade. Here, I should also mention another common term in the strategy, Consolidation Zone.
After most of the trades are exited ahead of the end of the trading day for the sake of saving on the swap fees, the Asian trading session starts that features relatively low volumes of trades. Because of low liquidity, there emerges the Consolidation Zone that is basically a night flat.
The above figure displays the examples of such flat consolidation zones, when, form early evening to early night the range of price fluctuations gets considerably lower. Step 3. The Impulse Level means a range of prices in the short-term timeframe, which is a short section of the price flat movement. Or, it is a common sideways trend. There is not a common opinion on the identification of the consolidation zones and the impulse levels, according to arguments on trader forums.
Many see just no difference between these concepts, and I agree in a way with them. I want to stress that the screenshots presented in the articles are just some examples of what the strategy author means. All these zones are identified subjectively! The level of a sharp change in trend is a common pin-bar that is a candlestick whose shadow in the trend direction is longer than that of others.
Rules for entering trades. The Sniper trading system suggests basing on the extreme price levels of the previous day identified in the longer timeframes. After the extreme price levels of the previous day are drawn and projected into the current day, one identifies the consolidation zones and flats in the short-term chart and paints local impulse levels within daily extremes.
Trades in the trend direction. Trades counter the trend. Trades are entered on the rebounds from the bank levels or TILs. That is, on the rebounds from the boundaries of the global daily channel, or the levels formed by market makers. There may be variants for the conditions to determine a false or a true breakout. According to one of the versions, a true breakout is a pin-bar that is at least 4 pips longer than the breadth of the local IL range.
According to another version, one should enter a trade if the price rebounded from the upper or lower boundary is more than 15 pips the flat range on M1-M5 chart is usually less, so such retracement may signal the sideways trend breakout. Rules for exiting a trade. The volume that you enter a trade must be shared into two orders. The first order is closed at the take profit that is set at the same distance from the entry as a stop loss. The stop loss size is about 1- pips red line.
Once the lower boundary of the range is broken out, you enter a short trade with two orders yellow line. The take profit is equal to the stop loss green line. If you enter a trade counter the trend when the price retraces from the TIL in long timeframes , you exit the trade in the same way. The only difference is that you put a take profit based on the flat patterns in the short timeframe.
Try to master the strategy at least for one currency pair, as it is rather confusing. The theory is good. But is hard to track all these patterns if are not trained, especially in the short timeframe. So, I do not think this strategy is good for newbies, and the professional traders already make profits trading based on patterns and strong levels.
This is rather a result of a well-designed marketing campaign. This gave hope to the beginners that there appeared a really winning low-risk trading strategy. Next, the strategy was spread on the Internet accompanied by grateful comments, which made the product commercially successful. The forex trading strategy Sniper is a good training tool for the demo account, it will teach you to discover emerging candlestick patterns, visually determine the horizontal levels, and so on, which is good in all types of trading.
And, of course, it will train to follow risk management that is the discipline. MACD 3d above golden line. Blue bar. Fx Prime final blue color. Lukas arrows and curves sell arrow. MACD 3d below golden line. Red bar. Red touch line. Fx Prime final red color. In the pictures Sniper Trading System in action.
Share your opinion, can help everyone to understand the forex strategy. Tina Thursday, 17 June The best template for make money in the forex. Thanks a Dimitri. Maury Guindy Friday, 25 October Cloud trading, Hama system. Touch line, FX Prime. Sell Lukas arrows and curves sell arrow. Red bar Red touch line. Sniper Trading System. Comments: 2. New Sniper System -.
I have been actively trading the financial markets since April Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. At my leisure, I love attending live music, traveling, and partying with friends. Save my name, email, and website in this browser for the next time I comment. Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.
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The strategy buys at market, if close price is higher than the previous close during 2 days and the meaning of 9-days Stochastic Slow This is a combination of 2 of the most used indicators. I specifically only use the D line with my rsi , but you have the option to use the K and D line if you so choose. RSI is good for momentum Stochastic is good for short term momentum Best used with Sniper chart overlay.
Get started. Indicators, Strategies and Libraries All Types. All Types. Open Sources Only. Top authors: sniper. HPotter Wizard. Sniper Scalper. Fish Sniper - Trendicator. Sniper Stochastics 2.
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