I just felt that this quick write up was needed, and it was good time. Whilst by now that many posts here discuss well the Belly push (Long & Short) strategy, there is a need that I discuss with you all the additional tweaks to the initial strategy that I discussed here .
Just as you see that whence we get the RSI hit the line and closes near that we take action in respect to BPS (Short) and BPL (Long). This action can be tweaked a little. Just as you know 4 hours is a very long period of time, when the RSI hits for the first time the Horizontal Belly Line (HBL), we do not generally expect the price action to swing in the direction of BPS or BPL immediately, but rather its the time for patience to step in now.
By patience I mean, we need to now look very carefully, the way price is moving or acting at that particular stage. For eg. as we see in the BPS strategy for the $USDCAD , the price candle at Dec 15th 1600 hrs is not near the HBL value of 69, but is around 64.50. The need to understand is that when the price approached this HBL, it acted rejection from the psychological level of 1.0400 and soon reversed down side and closed at 1.0395. Have a look below chart image again:
This price has two things to note. One, its near the psychological level, and second, that it touched and closed below the HBL and near the 1.0400 psychological level. These two things helped us use the BPS in play and we short the $USDCAD expecting 30-50 pips, and we succeed.
The second time when the price followed and brought the RSI near the HBL again on Dec 19th 0000 hrs candle close, it is to be noted then that the close is very near to the one we had with the Dec 16th 1600 hrs candle just discussed above. So we wait for the market to make decision near the 1.0400 psychological level and we see that getting failed with the next candle of 0400 hrs with a close of 1.0401 and RSI below the HBL level. So we decide to effect the BPS strategy in play one more time by shorting the $USDCAD and waiting to gain 30-50 pips, and we succeed this time as well.
The strategy can be used initially with low leverage and proper risk calculation per trade. Normally, novice traders should not risk more than 3% of their net value per trade. Once you become familiar in understanding this strategy and its techniques are developing to work for you in favor, increase you leverage and try carefully. This way you will start to develop confidence in the strategy and would be in better position to judge the state of price action that takes place round the clock.
Remember, there is no greater tool for success but learning. Learning gives wisdom and that’s the ultimate.
Trade safe. Good Luck. God Bless. Ciao.
PS: Don’t forget to do your part of charity if this strategy works for you. No conditions apply!