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Trading strategies used in the online forex trade room.

How You Use the Tiger Time Lanes band shades to create effective forex strategies

There are a number of setups that are derived from the Tiger Time Lanes  band shade formation and the white zone phases. Here we will look at the three most common.

Revision To The Mean Trade – Orange To White:

As we all know price doesn’t move in straight lines. It either moves within a range or it trends in either a long or short direction. But eve when it trends it tends (unless there is some major news event) to do so in a zig zag fashion, moving to a new high / low, then retracing back before continuing its trend and establishing another new high / low.

Why does this happen? Well as mentioned earlier, price is determined by the volume of buy and sell orders. Many traders place orders in the market at various points or levels that they think are important* so when price reaches these areas price can stall or reverse (depending on the number / size of orders). As price retraces or when it has retraced to a certain level, those traders who have been caught with positions on the wrong side of the move, often liquidate their positions, creating second / third wave of buying or selling momentum, pushing price to further highs / lows .

The Tiger Time Lanes grids are so good because the demarcation of the band shades predict, with stunning effectiveness, where these changes of direction will take place.

The most common trade is the Orange to White. It happens on the initial breakout or subsequent secondary move of price. The further the way price is from the white zone and the I minute L1 discs the greater the chance of reversal. The best way to think of it is as if price were attached to a piece of elastic, the further the stretch the more likelihood of it to come back unless the elastic breaks, which would then signify a significant breakout

*It you want to know why they cluster in specific areas you need to understand the concept of collective psychology to know why they cluster in specific areas.

The White Zone Trade:

As emphasized in the explanation of Orange To White trades, price reverses. But at what point does price stop reversing and the second / third wave start? Again the band shades are invaluable because what was once support often becomes resistance and vice versa. The most powerful level of all is the edge of the white zone. For scalping, the edge of the 1 minute is particularly important. As price breaks out and then retraces back to the white zone this has the effect of pushing price way again. Think of an analogy of refueling. The below video demonstrates this effect in action:

For it to be most effective it usually requires a new session high or low to have been made and that it is the first time that price has come back to the white zone from its break out. Think of a ball bouncing on the ground, the higher it is thrown the bigger the likely bounce.

Pre-emptive Reversal Trade:

This trade looks for clues of an ending of the move and a possible more substantial reversal. As pointed out above the white zone goes through a number of phase as it recalculates. More often than not when the white zone collapses, that is a signal that price, at this moment has finally stalled for the time being and that a possible retracement could happen. There are of course several courses of action that you could take. If you are out of the market you could consider this the moment to enter it against the trend. Alternatively, if you are trading with the trend you could take the opportunity to close your trade or to lighten you position (take some profit) obviously, this would be dependent upon your risk reward and your trading plan.

The tiger time lanes forex signal software is made up of several components. As you look at each matrix you can see the back drop to the levels is a series of coloured bands, referred in the live forex trading room as band shades. These band shades are determined by assessing the dynamic price movement using fibonacci ratios. They predict future support and resistance levels with the distance in between being shaded.

The first zone is called the white zone as in the most important zone on the grids. It represents what is “fair value”. What do I mean by that? Bear in mind that ostensibly forex is a relatively free market, where price is determined by the demand and supply for a currency pair (buyers and the sellers). “Fair Value” represents what the calculation has determined to be the natural range that price should be in on a given time frame. This is established using the historical data from that particular time frame (remember this natural price will be different on each time frame). However, price is constantly changing and so therefore the white zones are recalculating on every candle close. This means that when the market is quiet , i.e. where the price range over the time frame is small, for a protracted period, you will find that the white zones on all the time frames line up and the other indicators sit within the whites zone which gives the appearance of a congested area.

The zones either side of the white zone are coloured in various shades of orange. These orange zones get progressively darker the further away from the white zone they are from the natural price. On the basis that price always returns to its natural level (although is by definition the natural level must always be moving) the darker the colour the greater the chance that price will return to the natural level. The demarcation points between the levels, being based on fibonacci ratios, are the places with the highest probability of price change. If on a currency matrix several of these levels are in or close to alignment then that indicates strong areas of support and resistance.

As the white zone is always recalculating when price does move away into the orange zones it reacts and increases in size and follows the price. If or when the momentum of the price stalls for a reasonable period the white zone can collapse (quickly reduce in size) before expanding again to a more normal size. Thus the white zone can be deemed to go through a series of phases in any price move.

Multi Time Frame Combination Forex Strategy (Supreme Combo)

Categories: Forex Trading Strategies
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This forex strategy  is based on using three different indicators across three different time frames to produce the trading signal and has one of the highest probabilities of success.

Using the Tiger Time Lanes forex trading signals software we watch  for a new session or swing low to be made on the 15 minute time frame. When price begins to retrace from this point we then look for the L7 level on the 1 minute time frame, the L3 level on the 5 minute time frame and the L1 (one minuet disc) to coincide at or around the same price point. When price gets back to this point the trade is triggered.

What is the optimum entry?

There are several factors that need to be taken into account when looking to enter a Multi Time Frame Combination trade. When there is little price action, the alignment can appear frequently, giving false signals. It is important that a reasonable move has taken place before price begins to retrace. This should mean that the L1 and L2 (represented by red and green discs)  are at least 7 or more pips away. The greater the distance the greater the probability of success. The second element to look at are the white zones for these time frames. If the three white zones are expanded and are close together then this is a sign of limited PA and reduces the chance of success.

What else do I need to consider?

As with all Forex trading strategies you also have to consider the reasons for the move. If there has been a major news release, such as Non Farm Pay Roll, the prices is likely to fluctuate wildly. In this situation it would not be advisable to take the trade. It is imperative when trading to try to ascertain the reason for a price move, news, rumor or because stops have been triggered. In addition it is also useful to note the prevailing trend of the 15 minute and hour charts as if the signal is with these trends then it again increases the chance of success.

Under – Over / Over- Under

Categories: Forex Trading Strategies
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grid9bThis is one of the most basic strategies that can be employed but used in the correct circumstances can be extremely effective.

The basic principle is that “big figure” provides support and resistance. This is very much based on crowd psychology. Many traders base their targets on a pair moving to the next “big figure” and then exit their positions at that point reversing the buying or selling momentum.

For example, if EURUSD moved up from 1.1500 to 1.1600 that is a 100 pip move between the two “big figure”. If price has not crossed over the big figure of 1.1600 previously in the trading day then there is a high probability that after price crosses over it will retrace back below the big figure.

What is the optimum entry?

How far do you allow it to cross before it changes direction? This is where the Tiger Time Lanes can be very useful. If there is a band shade or multiple band shade levels the other side of the big figure (within 15 pips of big figure but ideally around 6-10 pips) then is is an excellent point to take the trade.

If you haven’t got a copy of The Tiger Time Lanes then you can instead look at 1, 5, 15 and 60 min charts to see if there are any other natural points of support and resistance close or perhaps longer term MA’s.

Remember, this is a scalping strategy and you would be looking for 6-10 pips as your target. This doesn’t mean that you can’t get a big move from this, but then lots of other factors come into play. Don’t be upset if make 7 or 8 pips and the price goes on to retrace 50 or 60 pips. Keep in mind your your objectives for the trade once achieved what happens next to price is immaterial.

 

What else do I need to consider?

Obviously the reasons for a move are very important. If we have just had news driving the price action this greatly reduces the probability of success; much of course depends how far price has come and the momentum behind the price move.

The more you watch price moving over or under big figure the more you will get a feel for the strategy. As with all new strategies practice it first on a demo account .

 

 

 
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