Big market players often like to take the money form small speculators by engineering false breaks of previous swing highs and lows. The bar which is named swing high should be surrounded with at least to bars with lowers highs on both sides. The bar which is named swing low should be surrounded with at least to bars with higher lows on both sides.

For this strategy could be used various methods for opening of a position. Here we will present just a few of them, but anyone who is interested can ask for further details.

Rules for long position

The prices fall below the previous swing low but not more than "n" pips (this number is usually around 10 pips, but it is different for each currency pair and for different levels of market volatility). The last bar is marked as Signal bar.

1. Long position is initiated when:
   - the price breaks 2-3 pips above the high of the Signal bar, or
   - the price breaks 2-3 pips above the previous swing low.
2. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.
3. A limit order is placed according to our Money management rules.

Rules for short position

The prices rise above the previous swing high but not more than "n" pips (this number is usually around 10 pips, but it is different for each currency pair and for different levels of market volatility). The last bar is marked as Signal bar.

1. Short position is initiated when:
   - the price breaks 2-3 pips below the low of the Signal bar, or
   - the price breaks 2-3 pips below the previous swing high.
2. After the position is open an initial stop loss order is placed 2-3 pips above the high of the signal bar.
3. A limit order is placed according to our Money management rules.

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