JARROO: The Best Trading Price Action Strategy

Jaroo is a trading strategy that has been drawn from price action technique. The method has interesting features incorporating techniques for ascertaining key levels and simplified entries to the trading market and identification of short term trading goals.

The first things required when employing method jaroo is identifying swings on the chart. While identifying swings, its good to identify the maximum and minimum price movement levels. The swings should be easily identifiable for the trade to be considered valid.

The following step involves drawing horizontal lines through the levels where maximum (resistance) and minimum (support) price movements have been identified. At this particular, levels, it is must that there should be a minimum of two candles that either open or close in proximity with the levels.

Jarroo Entry Rules

The first entry rule for Jarroo traders is opening a pending order for buying immediately the candlestick breaks the level of resistance and ends up closing above it.  

For selling orders, the pending trade or is opened for selling after the candlestick has broken the level of support and closed below it.

When to take profit while using Jarroo strategy

Taking profit when employing jaroo method, it is significant to identify the closes resistance and support levels. Using 1:2 or 1:3 risk ratios is advised. Therefore, the profit should be at least twice or thrice the risked amount where you have put your stop loss. In the case whereby the stop loss is put at 40 pips then the profit should be at either 80 or 120 pips away.

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