Adversa Tactics is one of the Forex trading strategies that can be classified as the most difficult. It is based on combining numerous models of expansion and attraction in combination with technical techniques. The main essence of the strategy is the channel method of trading and the use of trend lines, which are used to build the very working channel. Trading is based on assessing the probability of breakdown of the corridor boundaries.
Main trading pattern
Adversa tactics apply when a specific pattern is formed on the market. The formation of a channel requires the formation of four points: local minima are connected at two points, and local maxima at two other points. The line connecting the highs will be the upper boundary of the channel, and the one that connects the lows is the lower boundary of the channel. The situation should be created on the chart, when the price rolls back and forms a local maximum from the first point forming a local minimum. From the second point, the formation of a new minimum begins, which should be higher than the first. The last, fourth, point is also a pullback, it forms a maximum that will be higher than the second point. With the help of trend lines, the peaks are interconnected, and the trading channel mentioned above is obtained.
Level overlay
Each point that forms the maximum and minimum will become the basis for building horizontal levels. They will play the role of support lines and resistance lines. This will depend solely on which market dominated the trend in building the channel. Advers's tactics involve defining the goal of the actual trend. For this, an additional trend line from a set of technical tools is used. It is laid in the very center of the working trade channel and passes between the third and fourth points and the rollback point from 4 highs.
The intersection of a new line with the upper part of the channel leads to the formation of a fifth point. It is she who will play the role of the actual trend. There is a high probability that after the price reaches the goal, it can be either a light touch or a partial break through, the direction of the price movement will unfold. The methodology for determining the goal is based on the rules of the model of attraction.
Entry points
Adversa's tactics provide clear signals for entering the market. This is a breakdown at the cost of the borders of the channel with the closure of the candles behind them. When the lower side breaks, it is worth considering the opening of Sell deals, when the upper part of the corridor breaks through, a good signal arrives to open Buy positions. After working out the goal, after the price reversed and the trend changed, the scheme for constructing a channel for trading can be repeated, but for a different trend.
Placing orders in stops and profits can be carried out using standard trading tactics. As an alternative option for further actions, you can consider the attraction model to determine the goals of the movement and to set long-term take profit at a certain level.
The specifics of the trading scheme
Adversa Tactics, the description of which is outlined above, is designed for long-term trading prospects. The required quality that a trader who has chosen this trading mechanism should have is patience. It is considered optimal to trade on daily timeframes. A prerequisite is the verification of price breaking of key lines on weekly timeframes. This will exclude trade in the negative for false signals.
Advers's tactics, the full description of which is problematic to present, is a topic of debate for many traders. This is due to the fact that the signals for this strategy are very confusing and often ambiguous.
What is the strategy based on?
Adversa tactics, an indicator by which gives fewer signals than manual trading, is a methodology for analyzing price behavior based on cause and effect phenomena in history. The main essence of trading according to the scheme is to analyze the properties of the process, the results of which can be used to forecast future developments in the foreign exchange market.
The philosophy of trade is explained by the causality of the formation of a new price range, which takes into account the consequences of the present and ensures the updating of old prices. We can say that the new price is a continuation of the old. Each event on the chart takes place in the prism of the leitmotif of causes and effects, which are always taken into account on the graphs of the exchange rate. Advers's tactics, which many traders have tried to explain in plain language, have some similarities with one of the dominant laws of technical analysis. Price always remembers everything. What is coming in the future is nothing more than a reaction of the price of the past. The highlight of trading according to the strategy is that the trader has the ability to predict the future on the price chart, starting from such simple concepts as support and resistance lines.
The main difficulties when working with the system
Tactics of Adversa, the practical use of which causes difficulties for many, suggests two likely scenarios for the development of events, which is due to trade through price channels. The price always either fights off the border of the corridor or breaks through it. The safest way to apply the strategy in practice is to take profit, when the price fights off the fifth point in the area of the resistance level. At the same time, one should not forget about the option of breaking through at the very fifth level.
During a protracted flat, which is a very common occurrence in the foreign exchange market, it is quite problematic to determine the highs and lows from which you need to build on the construction of the channel. During stagnation, they can be updated quite often. And the last drawback of the system is its late entry into the market. So, opening positions at 3 points can bring much more profit than at the fifth. A four-point channel outline is the use of a full short-term course cycle.
Advers's tactics, reviews of which are very ambiguous due to significant shortcomings, allow you to enter a purchase or a sale after the impulse has exhausted itself, but not at its very source. This is what does not play into the hands of traders, and they often upgrade this mechanism.