I started trading a few years ago, it was something I had always been interested in doing. So I started like a lot of us do and began to do my research. I searched online, bought books and started reading to try and absorb as much information as I could. I tried numerous strategies and was looking for the holy grail but found no success in my trading. I then turned my efforts to trying to make a random entry strategy profitable (not really a strategy), this helped me a lot because this made me realize that yes the entry is important but just as important is how you manage the trade and your exit. I currently trade the GBP/JPY,GBP/USD, USD/JPY, USD/CAD, AUD/USD, and the EUR/USD. I use the 4 hour and daily charts as my entry charts with this particular strategy.
Well on to this simple consistent profitable strategy. I start by determining whether a pair is trending or not and do this by looking at a larger timeframe, if i'm trading the 4 hour I will look to the weekly for the trend and if trading the daily I will look to the monthly for the trend. I then go to the entry chart and look for a two or three candle formation after a retracement to bounce back in with the trend. The two candle formation consist of one candle and the second candle closing higher than the high of the previous candle if going long and the close of the second candle lower than the low of the first candle when going short. The three candle pattern is based on the same premise but there are three candles involved and the third candle has a higher or lower close than the second candle in the pattern. The stoploss is placed 3 pips below the low of the candle pattern on a long trade and 3 pips above the high when in a short trade.
Now all that is left to do is monitor the trade. I look at support/resistance and/or weakness in price action and move my stoploss accordingly to reduce risk or to just to exit a trade. I will be posting some examples soon. I also will be posting live trades a little while after I enter them as I won't have the time to post them immediately and I am trying to teach traders not give live calls.
Thank you for your interest in this thread.
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Well on to this simple consistent profitable strategy. I start by determining whether a pair is trending or not and do this by looking at a larger timeframe, if i'm trading the 4 hour I will look to the weekly for the trend and if trading the daily I will look to the monthly for the trend. I then go to the entry chart and look for a two or three candle formation after a retracement to bounce back in with the trend. The two candle formation consist of one candle and the second candle closing higher than the high of the previous candle if going long and the close of the second candle lower than the low of the first candle when going short. The three candle pattern is based on the same premise but there are three candles involved and the third candle has a higher or lower close than the second candle in the pattern. The stoploss is placed 3 pips below the low of the candle pattern on a long trade and 3 pips above the high when in a short trade.
Now all that is left to do is monitor the trade. I look at support/resistance and/or weakness in price action and move my stoploss accordingly to reduce risk or to just to exit a trade. I will be posting some examples soon. I also will be posting live trades a little while after I enter them as I won't have the time to post them immediately and I am trying to teach traders not give live calls.
Thank you for your interest in this thread.
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