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Forex – Profste Method

  • The Profste Method is a method created by Stefano Bargiacchi. His method is based on four basic principles of the technical analysis:

    1. a strong trend is more likely to continue rather than reverse;
    2. usually trends end with a moment of euphoria, the so called climax;
    3. the momentum precedes the prices;
    4. The market switches from moments of expansion to moments of contraction. For example, this can be seen from a candlestick graph, where one long candlestick is followed by a short one and viceversa.

    The Profste method allows you to enter a trend that has already begun but only if that trend has a strong impulse ( if it has a very long candlestick ). The basic condition is, of course, the knowledge of recognizing the beginning of a trend.

    Before joining, you will have to set the stop loss, which is the amount of money that you can afford to loose if the trade fails, the trailing stop, which is the amount of money that you want to gain in that trend, and the risk reward, which is usually applied if the ratio between risk / benefit is higher than 1/2, that means that you risk 100 but you can gain at least 200.

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