Snake Wave trading strategy is a trend following strategy. It looks quite complicated and messy but it’s not. It is actually very simple to trade using this strategy. There are six components in snake Wave trading strategy:
- Price channel stop
- Snake boarders
- Snake force
- Status monitor
Price channel stop is like a parabolic SAR which appears above and below the price. In a bullish market price channel stop indicator is below the price and it is blue in color. When the market is bearish the price channel stop is above the price which is pink in color. In some way it is also like a moving average.
Snake boarders are the waves that you see on the price chart. Basically these waves are formed in three layers. Blue waves are formed below the price which indicates the bullish market and the red waves appear above the price which indicates the bearish market.
Snake force is a histogram which you can see at the bottom of the chart. When the snake force is above the zero level the histogram is green in color and it indicates the bull’s dominance in the market and when the snake force is below the zero level it is red in color and it indicates the bear’s dominance in the market.
Status Monitor is located at the bottom of your chart window. Status monitor gives you the details of the market. Status monitor includes the details like spread, lot size, by swap, sell swap and leverage.
Tangajiwa is used to figure out the top and bottom of the price action.
Snake Wave Buy Condition:
- Snake boarder (waves) should be blue in color.
- Snake force should be green in color.
- Price channel stop should be blue in color.
- A picture of blue hand should appear on the swing low.
Snake Wave Sell Condition
- Snake force should be red in color.
- Snake border (waves) should be red in color.
- Price channel stop should be pink in color.
- A picture of red hand should appear on the swing high.
Snake Wave Take profit and Stop Loss
You can hold the long trade until the price channel stop turns in to pink color. Once you see the price channel stop turns in to pink color you can take profit. You can hold the short trade until the price channel stop turns in to blue color. Once you see the price channel stop blue in color you can take your profit. Stop loss should be kept below/above swing low/high.
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