Hi friends,
I suspect that some of you might be more interested in short term trades so I'm sharing another strategy which, if used sensibly, can produce consistently good pips.
Try it on the following pairs:
EUR - JAP
AUS - JAP
AUS - USD
Firstly, open a 2 Day chart - to 5 minutes.
Place a 20 Simple Moving Average
Try to ascertain what the latest trend is i.e. for the last day.
Let's assume it is going Up or Sideways.
The following is an example going Long only, i.e. the trend is up or at least sideways.
1- wait for the price to retrace below the MA whereby you have at least 2 bars with closes below the MA. These do not have to be consecutive but must be part of the same group, i.e. before the price crosses above the MA.
2- then wait until you have at least 2 bars with closes above the MA but the second one must be higher than the first one. Again, they do not have to be the first two, but ensure that you have two bars which are next to each other and the second bar(i.e. the last) has a higher close than the one before.
3- Enter at Market on the Close of this last (highest) bar.
4- Place a Stop Loss - for 10 pips below the Entry
5- Place a Limit Sell for 50 pips or ride the market with a trailing stop of 10 pips.
This is a form of Swing Trading and if you got your main trend right, you should do well.
For other pairs, please try the following timeframes:
Eur - Usd = 2 Day - 15 minutes
Gbp - Jap = 2 Days - 10 minutes
Gbp - Usd = 2 Days 10 minutes.
Most days you'll find several good opportunites. If these are not there, do not trade.
For Downtrends, you'd only go Short and the reverse set-ups apply.
The usual rules of good money management and discipline apply, as you know.
Good luck and cheers.
[email protected]
PS - I am not selling anything and I am not a broker.
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