Price Action Strategy: Jarroo Method

This article describes the strategy known as the “Jaroo Method.” It is based on the concept of price action but with some unique features. Are you interested? So let’s explore this strategy!

Define key levels

•Identify the swings. Find the local minimum and maximum levels of the price movement. They must be eye-catching.
•Then, draw the horizontal lines through the levels that are at the local highs and lows. There should be at least two candles that close/open near these levels.

Levels above the price will be called resistance levels, below – support levels.

Entry rules

•After the candle breaks the resistance level and closes above it, we consider opening
a pending order to buy.
•After the candle breaks the support level and closes below it, we consider opening a
pending sales order.

Stop Loss

•Place a Stop Loss below the minimum of the candle that broke the resistance
•Place a Stop Loss above the high of the candle that broke the support
If the candle is too big, you can place the Stop Loss slightly below the resistance level / above the support level.

Take Profit

To place Take Profit, you will also need to find the closest support and resistance levels. It should be 2 or 3 times greater than the Stop Loss. For example, if you place the Stop Loss 30 pips above the current price level, you should consider placing the Take Profit 90 pips below the current price.

Risk Management

According to risk management rules, you should not use more than 1-2% of the deposit to open an order. Additionally, there is a more conservative way to use this strategy. After the signal candle appears and breaks the support/resistance level, you should not open a pending order as described above. Instead, you should wait for the next candle to occur on the chart. So, if the next candle does not break the critical level again, you should place the order
earring.

Great! You just learned a pretty difficult strategy! If you want to try it, open an account.