Kevinator Retracement system was submitted by a trader called Janus but it was written by Kevinator hence its name. It is a scalping system which is based on the retracement of the market prices.
When the market retraces, it moves back in the opposite direction of the previous trend. Some traders may refer to it as pull back. Retracement of the market prices is very different from reversal of the market trend. When a reversal occurs, the trend changes direction; if the trend was upwards then a trend reversal would mean it would start moving downwards. However for price retracement, the market pulls back some pips but still continues with the original trend. If you are keen on the market chart you will notice such occurrences. These are what the Kevinator Retracement Trading System takes advantage of to make profit for you.
The Kevinator Retracement Trading System was written and designed to be used for trading the majors which include: EUR/USD, USD/CHF, GBP/USD, AUD/USD, USD/CAD, USD/JPY and GBP/JPY. It is strictly advisable to use this trading system on the majors only. Avoid using it when trading other currency pairs. The majors are the ones that do have conspicuous retracements when on the course of their market trend.
The system has retracement bars. There are upward and downwards purple bars depending on the direction the market prices are retracing to. These retracement bars are the purple or magenta bars that appear on the indicator on the bottom. These purple bars are used as entry points when trading.
The best part with this trading system, is that it can be used to scalp, enter short term trade or enter long term trades.
For the long term trading, the trader may choose to enter a long term trade when the stochastics indicator is changing direction and then hold the trade until there is an occurrence of the retracement. So, you will enter the market with a trade (either sell or buy depending on the direction of the market trend) then leave the market in the market until there is the formation of the purple retracement bars. Therefore in this, you use the retracement bars as your entry and exit point. You enter the market after it has finished retracing and then exit when another retracement starts.
Fig.1. Showing the template of the Kevinator Retracement Trading System.
If you look closely at the CCI indicator at the bottom of the chart you will notice that it has blue, red and magenta bars. The magenta bars appear when there is a retracement.
You may also decide to go short term.in so doing you will use the retracement bars as your entry points.
In all of the trading methods the market trend is determined by using the stochastic indicator while the entry point is defined by the retracement bars.
How to open trades.
Kevinator Retracement Sell order:
This can either be for a long term trade or a short term trade. For the long term trade, it has to be on a downward trend and you wait after the retracement has occurred then you place your order.
For a short term sell order, you place it when there is a retracement on an upward trend. Retracement on an upward trend would mean that the market price will down up by some pips.
Fig.2. Kevinator Retracement Placing a sell order.
Kevinator Retracement Buy order:
This can either be for a long term trade or a short term trade. For the long term trade, it has to be on an upward trend and you wait after the retracement has occurred then you place your order.
For a short term sell order, you place it when there is a retracement on a downward trend. Retracement on a downward trend would mean that the market price will pull up by some pips.
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