The Bladerunner Trade – Best Forex Trading Strategy

The Bladerunner Trade – Best Forex Trading Strategy

Submitted by adil on Fri, 08/29/2014 - 18:14

Getting Advanced with Bladerunner Strategy

The most suitable price action strategy in Forex trading is the Bladerunner strategy, because this strategy uses the price actions in order to find entries. Usually traders use it in combination with round numbers, candlesticks, pivot points, and resistance and support level.

Moreover, you do not need to have any indicators, such as, RSI, MACD, and Stochastics to use the Bladerunner strategy. These indicators are also known as the off-chart indicators. However, you can use your favourite indicators if you are confident about them. For example, some people trade this strategy along with the Fibonacci levels, which is completely fine as long as you are comfortable with it.

Most traders recommend and prefer to use on-chart indicators, like the 20 Bollinger bands’ mid-line or 20 EMA. These are very useful indicators, in fact, you can use them in combination as well and trade it along with the Bladerunner strategy as a Bollinger band trading strategy.

In the following example, 20 EMA has been used. It can be traded on any pair and on any time frame. You can trade Bladerunner strategy at any time during a trading day, and every trader must be aware of the fact that there is a particular time in a day which is more suitable for some strategies than others. For example, the time, when the Asian market starts, is favourable in terms of giving entry due to a reasonable breakout and retest, but the Asian afternoon market is comparatively slow. On the other hand, if you look at the London market, it opens with the highly volatile and erratic prices and it will be irrational to reasonably enter for trading.

Once the prices are settled after the initial announcements and market news, traders are likely to get more reliable entries. Therefore, being a trader, it is important for you to adapt your strategy, according to a suitable time duration to trade them.

A Successful Retest

If you want to enter into trade using this strategy, it is important that the price must be trending, meaning it should break apart from a range or consolidation before the entry, and 20 EMA re-testing should be a success. So, the question is, what is meant by successful re-testing? In a successful retest, the price should move or stay above the EMA, if the price is above the EMA. And if it is below the EMA, it should stay that way. For example, when the first candle hits the EMA, it must end at the same side of EMA it appeared from.

Key Pointers

 If you want to enter the trade, you should look for two or more indicators that recognize the same price level where price is likely to react. Let’s look at it in more detail with the help of an example. It is usually considered safe when there are more than one rejections from the 20 EMA, and in an ideal situation, every trader prefers to see this happening at the same level as pivot points, resistance and support points and other significant points that impact the prices.

Secondly, news and trading announcements are of vital importance when you are using Bladerunner strategy on the lower time duration charts. Experienced traders usually do not place a trade 30 minutes before the regular news and announcements and wait for another 15 minutes after the news. It helps in making up their mind about whether or not they should consider placing a trade.

Last but not the least, it is important for every trader to trade in the direction of current trends. It can be identified by analyzing which side of the EMA the price is currently on.

These are some of the basics about the Bladerunner Strategy and if you really want to play it safely, you should use it with the identifiable forex candlestick pattern that occurs to confirm the trade.