Tactics of Adversa: a complete description and application in practice

Tactics of Adverse is one of the strategies of trading in the Forex market, which can be classified as the most difficult. It is based on combining numerous models of expansion and attraction in combination with technical methods. The main essence of the strategy is the channel method of trading and the use of trend lines, which are used to build the same working channel. Trade is based on an estimate of the probability of breakdown of the corridor boundaries.

Main Trade Pattern

Adverse's tactics are applied when a certain pattern is formed on the market. To form the channel, it is necessary to form four points: two local points are connected with local minima, and the other two with local maxima. The line connecting the maxima will be the upper boundary of the channel, and the one that connects the minima is the lower boundary of the channel. The graph should create a situation where the first point forming the local minimum, the price rolls back and forms a local maximum. From the second point begins the formation of a new minimum, 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 vertices are interconnected, and the trading channel, which was mentioned above, is obtained.

Overlay levels

Each point that forms the maximum and minimum will form the basis for constructing horizontal levels. They will play the role of support lines and resistance lines. This will depend solely on the market dominance of the trend in building the channel. Tactics of Adversa involves determining the purpose of the actual trend. For this, an additional trend line is used from the set of technical tools. It is laid in the very center of the working trading channel and runs between the third and fourth points and the rollback point from the 4 maximum.

The intersection of a new line with the upper part of the channel leads to the formation of the fifth point. It is she who will play the role of the actual trend. There is a high probability that after the moment the price reaches the goal, it can be either an easy touch or a partial break, the direction of the price movement will unfold. The method of determining the target is based on the rules of the attraction model.

Entry points

Adverse's tactics provide clear signals for entering the market. These are breakdowns at the cost of the canal borders with the closing of candles behind them. When the bottom line breaks through, it is worth considering the opening of the Sell transactions, when the upper part of the corridor breaks through, there is a good signal to open the Buy positions. After working off the goal, after the price has reversed and the trend has changed, the channel construction scheme for trading can be repeated, but for a different trend.

The ordering of stops and profits can be carried out using standard tactics of trade. As an alternative for further action, one can consider the attraction model for determining the objectives of the movement and for setting a long-term take-profit at a certain level.

Specificity of the trading scheme

The tactics of Adverse, whose description is outlined above, is designed for long-term prospects of trade. The obligatory quality that a trader who has chosen this mechanism of trade should possess is patience. Optimum is considered trading on day timeframes. A prerequisite is to check the penetration by the price of key lines on weekly timeframes. This will eliminate trade in negative signals.

The tactics of Adversa, the full description of which is problematic, is the topic of disputes among many traders. This is due to the fact that the signals for this strategy are very complicated and often ambiguous.

What is the strategy based on?

Tactics of Adversa, the indicator on which gives fewer signals than manual trading, is a technique for analyzing price behavior based on cause and effect phenomena in history. The main essence of trading under the scheme is to analyze the properties of the process, based on the results of which you can make a forecast of the future developments in the currency 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 renewal of old prices. You can say that the new price is a continuation of the old one. 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 charts of the exchange rate. The tactics of Adverse, in the simple language that many traders tried to explain, has some similarities with one of the dominant laws of technical analysis. Price always remembers everything. What is to come in the future is nothing more than a reaction to the price of the past. The highlight of trading on the strategy is that the trader has the ability to predict the future on the price chart, based on such simple concepts as support and resistance lines.

Main difficulties in working with the system

Tactics of Adversa, the use of which in practice causes difficulties for many, involves two possible scenarios of the development of events, which is due to trade through price channels. Price always either fights off the border of the corridor, or pierces it. The safest option for applying the strategy in practice is taking profits when the price breaks from the fifth point in the resistance level area. In this case, do not forget about the option of breaking through the price of the very fifth level.

During a long flat, which is a very common phenomenon in the foreign exchange market, it is quite problematic to determine the highs and lows that you need to build on when building a channel. In the period of stagnation, they can be updated often enough. And the last drawback of the system is the belated entrance to the market. Thus, opening positions at the 3-point can bring much more profit than in the fifth. Drawing a channel based on four points is the use of a full short-term cycle of the movement of the course.

Tactics of Adversa, the reviews of which are very ambiguous due to significant shortcomings, allows you to enter into a purchase or sale after the impulse has exhausted itself, but not at its very origins. This does not play into the hands of traders, and they often modernize this mechanism.