Antonov Trading Strategy: What is the Antonov Method?

This trading strategy was created by the Russian forex trader Vladislav Antonov and is basically a fairly simple method designed as an improvement on another very famous method known as Vegas (which we will talk about later). For this, it seeks to introduce what is known as a percentage envelope instead of pips. Basically what this strategy does is use a tunnel of averages on a 1-hour Forex chart.
To produce this tunnel, it is necessary to take a moving average of 55 periods and the envelopes of this average are calculated at 0.38%, 0.62% and 1.62%, with which the tunnel is already obtained. Antonov refers to the lines obtained above the mean as U1 , U2 , U3 and U4 while for those that are below the mean he uses the following names: D1 , D2 , D3 and D4 . Finally, the simple moving average of 55 periods is called Line Balance or LB.
The trader also has the option of displaying the following indicators on the chart to serve as confirmation or reference:
Delimitation of the most important sessions by colors:

• North American session: 14:00 to 23:00 CET.
• European Session: 8:00 a.m. to 5:00 p.m. CET.
• Asian session: 0:00 a.m. to 11:00 a.m. CET.

1. High and low of the current session.
2. OSMA with a period of 26, 12, 9: This indicator is present in Metatrader 4 and what it does is calculate the difference between the MACD and its moving average. This difference is drawn in the form of a histogram and serves as a way for the trader to confirm the direction of a trend.

The final configuration of the chart with all the elements described above is as follows: In this case we can see that the different market sessions are shaded as follows (I clarify this so that there are no doubts with the example):Antonov trading technique
https://preview.redd.it/3f2fs7lsq7l91.png?width=320&format=png&auto=webp&s=943b6c3077f3be070dc05e3099634b4901b9d0b2

• American Session: Shaded pink and intersects with the European session (grey shaded area).
• European Session: It is the area that does not have any coloration.
• Asian Session: Shaded blue, intersects with the European session (darkest shaded area).

Once we have the chart configured with these indicators ready, we are going to apply the following rules defined by Antonov himself:

1. The LB line is used as the reference line to which the price tends to return. If we see that the candles make contact with said line, we must be ready for a strong deviation from that moving average, either in one direction or the other.
2. Generally, the price moves in the channel formed by the U1 and D1 lines , which usually occurs before a strong increase in market volatility occurs, for example, moments before an important economic data is released. . This situation usually occurs especially if the LB average has a flat slope, that is, in a market with no clear trend.
3. Normally, when the volatility in the market increases, the price will tend to reach the U3 line , in case the movement is upwards, or the D3 line , if the movement is downwards.
4. A normal pattern is one in which the price quickly reaches the U2 line if the market is bullish or the D2 line if the market is bearish and then corrects towards the U1 line (bullish market) or the D1 line (bearish market) and from there. from that line get to bounce. If this happens, the price will most likely reach the U3 level in a bull market or D3 in a bear market.
5. Finally, the band that is between the third and fourth lines, that is, U3 to U4 or D3 to D4, is almost never reached by the price unless some data with a strong impact on the market has been released, such as be some important figure related to employment in the United States for example, especially in times of economic recession.

>>>Access more profitable trading tips joining the Capitalist Exploits Insider Newsletter
More resources: American IRA & 401k Crisis