Good day Pipcrawler,
Below is an article I read about The 4 Week Rule. I don't quite understand. can you please explain with example.
[I][B]''The automated forex trading strategy we will look at here is free and has been used by savvy traders around the world for over 25 years and made millions! Let's take a look at it and how you can use it in your forex trading strategy for big gains...
This automated system is free but will beat most of the ones you see sold online because - it's proven in real time trading and most are not.
Most forex trading robots produce a back test simulation, knowing the closing prices and that's not real money. Anyone can make money with all the closing prices but you don't know them when you trade for real!
The one we are going to look at here has made millions of real dollars - it's proven.
So lets look at the system which was devised by one of the great traders Richard Donchian who is considered the grandfather of modern trend following. While he has passed away now, he has left a lot of valuable information, for traders to use, including this great simple system.
Ok let's look at it. All you have to do is remember one simple rule and here it is:
Buy a new 4 week breakout to new calendar high and reverse to a short position on a 4 week low. Keep reversing, as new 4 week highs and lows, are triggered and always keep a position in the market.[/B][/I]