The forex market is mostly seen to move in a trend or a range. In the previous article, we discussed the rapid-fire strategy, which works best in a trend.

The piranha strategy that we are going to discuss is used in a ranging market. Everyone would have heard of piranhas. They typically take small bites frequently off their prey until it is totally devoured. A single bite may not cause much harm, but it is the frequency of bites that causes the attack to be deadly. In the same way, the piranha strategy was developed to allow scalpers to bite the market and chew off small profits each time.

On average, one can find over 15 trades in a day using the piranha strategy. The piranha strategy is useful for trading on the 5-minutes time frame. This means each candlestick on the chart represents 5 minutes of price movement. When prices approach the upper band, the market is considered to be overbought, and when prices approach the lower band, markets tend to consolidate.

By setting a higher deviation value, the price volatility will be magnified, and we geta a Bollinger band with wider upper and lower bands. Since the strategy takes place in short timeframes it is advisable on highly liquid pairs. Long trades are initiated when market prices touch the bottom of the band, and short trades are taken when prices touch the upper band.

Piranhas are active in rivers and ponds but not in the rough seas with strong currents and waves. In a somewhat similar way, we avoid trading this strategy at times of major news announcements during the U.

or London sessions, as such environments reflect rough seas with strong currents and waves. The range can be identified using the Bollinger band strategy. However, we need to apply the concepts of price action for the identification of the range. The essential criterion for a range is that the price should respect the support and resistance levels at least twice. After we have identified the range, we will apply our strategy at the extreme ends of the range to take a suitable position in the pair.

The next step is to wait for the market to hit the lower band of the indicator or upper band of the indicator. At the lower band, we will look for buy opportunities, and likewise, if the price at the upper band, we will look for sell trades. In this example, we see that the price has approached the lower band, which means there is a high chance that buyers will take the price higher from this point.

One should not enter the market soon after the price touches the lower or upper band, which carries a huge risk. We need confirmation from the market before we can take a suitable position. In this step, we look for that confirmation. In this step, we determine the take-profit and stop-loss levels for the strategy. We have two take-profit levels — the first take-profit is set at the upper side of the range, a typical place for booking profits.

Another method is to hold on to the trades until the market shows signs of reversals, which is when the price falls below the middle line of the Bollinger band. The stop-loss for this strategy is placed below the support of the range or below the lower band. You are very honest and sincere in your work and I really admire that.

I am thankful I came across you on the web. You should definitely take the course before trying to trade out of hope. I adore the fact that you run the course personally. It really shows that you are a people person and care for others.

Keep it up. Thanks for the knowledge transfer. Great support team. Watch anywhere, anytime, as many times as you want!

Everything you need to know to start profiting. Check the relative strength of any currency pair at one glance. Proprietary Trading Tools Worth USD — Lifetime Access, No Hidden Fees. Get your questions answered by Adam Khoo and his team. This course is suitable for both beginner and existing traders. Adam will start from the basics before moving into advanced Forex trading strategies.

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Risk Disclosure Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk.

The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts.

Past performance is not necessarily indicative of future results. Student Login. Does this sound like you? Why FX trading? You can focus on a few currency pairs rather than study thousands of stocks. Protect Your Capital with Risk Management You will learn how to size every trade to keep your risk to a minimum. No More Fear and Greed; Only Confidence You will learn to manage your psychology like a top trader and make solid decisions even on nerve-racking trading days.

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Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts.

Past performance is not necessarily indicative of future results.

Course FAQ I AM A COMPLETE BEGINNER, THIS COURSE IS SUITABLE FOR ME? Adam is the best teacher in the whole wide world. Lesson 3: Mastering Technical Analysis. As the strategy is developed to trade in a range, one will find few opportunities when the market goes into a strong trend. Discover proven strategies to grow your money in the financial markets. With Covid, I decided to start investing, but really didn't know where to start.

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