Bullish Forex Strategy - High Conviction & High Volume

Strategy Name: High Conviction, High Volume

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Strategy Description:

High Conviction is a precision-calibrated strategy built to capitalize on sharp price movements following during high-volatility events. This dual-directional setup combines technical signals with volume dynamics to identify unusually large price swings accompanied by heavy trading activity, often a sign that the move may have further to go. While others might view these extremes as overbought or oversold levels, this strategy is designed to test whether the momentum is just beginning.

This strategy is intentionally selective and will not trigger frequent trades. It focuses exclusively on high-conviction setups, where volatility, momentum, and volume align to suggest a continuation of an extreme move.

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Core Setup:

Long Trigger:

• Price Breakout: Price must cross above the upper Bollinger Band, signalling an abnormally large upward move.

• Momentum Spike: RSI (14) must exceed 70, flagging an overheated market condition. However, with OBV configured to be positive, this may indicate buyers willing to drive the price even higher.

• Volume Confirmation: On Balance Volume (OBV) must be positive, confirming bullish volume pressure.

Short Trigger:

• Price Breakdown: Price must cross below the lower Bollinger Band, signalling an abnormally large downward move.

• Momentum Drain: RSI (14) must fall below 30, highlighting oversold conditions. However, with OBV configured to be negative, this may indicate sellers anticipating further downside.

• Volume Confirmation: OBV must be negative, reflecting net selling pressure.

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Profit Target & Risk Control:

• Take Profit: +1.5%

• Stop Loss: -1.5%

This symmetrical reward-to-risk ratio allows the strategy to stay balanced while providing room for price swings to develop in fast-moving conditions.

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Ideal For:

• Traders seeking to capitalize on extreme moves with high volume trades.

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High Conviction is designed for traders who thrive in volatile environments. It spots opportunities where others see exhaustion, executing with precision, selectivity, and the speed required in fast-moving markets.

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Next steps:

• Make this strategy your own – click here to customise to suit your preferences.

• Try this strategy on a different asset or timeframe -

  1. Navigate to the “Create” menu on the homepage, choose your preferred asset and timeframe, then choose “Copy” to duplicate the strategy.

  2. From there, backtest and deploy whenever you're ready.

  3. Reach out to the Level2 team with any questions or if you need tech support

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Risk Warning – Template Strategies

The template strategies provided on Level2 are for educational and illustrative purposes only and do not constitute investment advice or a recommendation to trade. These strategies are based on historical examples and are not tailored to your individual financial circumstances, objectives, or risk tolerance.

Before deploying any strategy, you must run a back-test using your chosen security. Strategy performance can vary significantly depending on the asset class, time frame, volatility, and broader market conditions. It is essential to adjust parameters such as entry/exit levels, indicators, and time frames to suit the specific security and current market dynamics.

Level2 does not guarantee the accuracy, completeness, or future performance of any strategy. All trading involves risk, including the potential loss of capital. Past performance is not indicative of future results. Users should conduct their own due diligence and seek independent financial advice if needed.

By using template strategies on Level2, you acknowledge that you are solely responsible for all trading decisions and outcomes.