Double Zero Price Action Forex Trading Strategy
The double zero forex strategy uses important psychological price levels to enter trades. The strategy is extremely easy to understand and can be applied on any currency pair with moderate volatility such as the usd/yen, euro/dollar, aud/usd, usd/chf,…
Forex Chart Setup
Preferred Time Frame: 15 Min
Price levels: double zero (1.2500, 1.2600, 1.2700,..)
100 EMA (100 period exponential moving average)
Double Zero Forex Strategy Long Trading Example
How it works?
Is the trend up? Go long 15 pips before 00 levels and close the trade 40 pips above 00 levels. Is the trend down? Go short 15 pips before 00 levels and close the trade 40 pips below 00 levels.
I. For long trades
- Price is trading above EMA 100
- Go long 15 pips before the double zero level.
- Take profit 40 pips above the double zero level
II. For short trades
- Price is trading below EMA 100
- Go short 15 pips before the double zero level.
- Take profit 40 pips below the double zero level
Risk To Reward
The risk per trade is always 25 pips while profit targets are 55 pips. So, risk-to-reward ratio is 2.2.