Forex is the biggest markets in the trading world. When you start to trade on the forex market you will surely come across plenty of strategies. It is a good idea to get acquainted with them, try them on and then decide which one suits you best. In today’s article, you will get to know one of such strategies. It is called the Gimmee Bar Trading Strategy.
Overview of the Gimmee Bar Trading Strategy
The Gimmee Bar was developed by the experienced trader and educator, Joe Ross. It is designed for a sideways market.
The Gimmee Bar Trading Strategy combines the Bollinger Bands indicator with the price action.
The first thing you should do is to establish that the market volatility is low. You can do it with the help of price action where you will be able to observe the market is trading within the support and resistance. The highest volatility is when the session for a specific currency pair is open. Trade the Gimmee Bar strategy when the forex session is closed.
Next, add the Bollinger Bands indicator to your chart. You can do it just the same way you attach any other indicator. Click on the indicators icon on the left side of the platform and find the one you need. Click on it and it will be added to your chart.
Then observe the price action in relation to the BBands. A range is established when the price tags the lower and upper band of the indicator on several occasions but it does not break out.
The last step is to identify the Gimmee Bar and to open a trading position.
Opening a short position with the Gimmee Bar
The prices are rising but they are still within the established range. The bar finally crosses the upper band of the Bollinger Bands indicator. Wait for a bar to close below open. This one is called the Gimmee Bar. Now is the time to open a short position.
Opening a long position with the Gimmee Bar
First, the price should fall within the trading range. Then, a candle crosses the lower band. The Gimmee Bar is the one that closes higher than open. Now you can enter a long trade.
Be careful because Gimmee Bar is not valid under some circumstances. Do not trade with it when it has a wide range when compared to the preceding bar, when it lies close to or touches the central moving average or when the following bar gaps and opens beyond the Gimmee Bar range.
Set the target at the opposite Bollinger band. As for a stop loss, you can place it over the high of the bar preceding the Gimmee Bar for the sell order or under the low of that candle for the buy order.
The Gimmee Bar trading strategy combines the Bollinger Bands indicator with the price action. It is useful in ranging markets. If there is a visible trend, you should not even try to find the Gimmee Bars.
The Gimmee Bar is also called a reversal bar because it announces the change in the trend.
Remember about the exceptions described above.
Avoid trading with the Gimmee Bar strategy in periods of high volatility in the market when range breakouts are common.
The profits earned with today’s strategy might be quite small, but consistent.
Using the Gimmee Bar trading strategy is quite simple. Practice in the free Olymp Trade demo account. Soon you will be ready to move to the live account where you gain real profits.
Best of luck!
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