- I will plan the trade and trade the plan.
- I will take 200pips and no more no matter where price goes.
- I will log my trades and review my trades weekly.
- I will rest one week per trading month.
- I will only trade my lowest risk and most consistent strategies.
- I will only trade the Daily chart.
- I will grow my little one with patience and discipline.
TOOLS
- MS Excel
- MetaTrader
System Rules
LONG TRADES
1. Market selling for 2 or more days or day closes BACK above a swing low
2. Today closes with a BEAR BODY BAR (BBB)
3. Set pending LONG order preferably within 25 pips MAX of the low of the bear body bar
4. Set stop at 50 pips below BBB low
5. Set limit at 200pips. For larger limits, keep moving stop 15 pips below low of each BBB
6. Forced take profit or breakeven at high of BBB
SHORT TRADES
1. Market buying for 2 or more days or day closes BACK below a swing high
2. Today closes with a BULL BODY BAR (BBB)
3. Set pending SHORT order preferably within 25 pips MAX of the high of the bull body bar
4. Set stop at 50 pips above BBB high
5. Set limit at 200pips. For larger limits, keep moving stop 15 pips above high of each BBB.
6. Forced take profit or breakeven at low of BBB
Exceptions: If market was trending for more than 4 days, allow for proper testing of BBB level.
Note 1: Taking profit at BBB high or low is also a great approach with this strategy.
Note 2: 2 days of BUYING suggests 2 days closing with bull body bars with higher highs.
GUIDE FOR ENTRIES AND TAKING PROFIT
- As a guide for taking entries, fib the BBB bar and use the daily support and daily resistance levels for entering long or short respectively. Failure at these levels suggest a good setup and price for entry.
- There are two take profit levels for long and short trades. The first is more conservative and usually lands 200pips or close. The second is and extended TP. These levels will help give an idea of how close to target the trade should go.
FIB LEVELS
100 - BBB HIGH
87.5 - Daily Resistance
12.5 - Daily Support
0 - BBB Low
150 - Long Trade TP #1
250 - Long Trade TP #2
-50 - Short Trade TP #1
-150 - Short Trade TP #2
Note 2: Always keep in mind that price may test the BBB high or low to the pip, or a few pips ahead or beyond. Hence, follow stop loss rules.