Hi Martin
I was searching for a system that may work for traders on this site without them having to do to much planning.
That's because I know that many will be lazy and will just want to trade from signals ( I am not talking about traders here at present ).
This is just one strategy which could work here and importantly, traders will get a correct understanding of multi time framing and trend following by using price action as it should be traded, Candle by Candle just following the higher time frames.
I like the idea here of trading the M5 Chart from signals given by the H4 Chart. This way traders will be in & out within the same trading session and will never get hit with a huge loss, 20 pips maybe ( Avoid Red News Events ).
There will be a need to study and understand the candle patterns before placing a trade but its all real easy.
This is price action how it should be traded.
See the following chart on the CADJPY
Look closely at the left H4 Chart, its on a downhill path. Then notice the small 7 pullbacks on the chart within the pink sell zone. The chart on the right is the M5 chart and see how this current move will probably be the 8th pullback and now a sell off. There were 8 trades at least on the M5 chart recently at around 30 pips each trade.
Of course I favour adding additional trades at each pullback at around Sharks favourite 20 EMA ( Black Line ).
Of course you could also just stay in the trade as long as it stays pink which at the moment would be about 300 pips if you stayed with the H4 chart.
As long as traders realise there will be plenty of small losses before the big wins, this may work.
This works on most Forex pairs but I wouldn't trade some like AUDNZD / AUDCAD.
Its also needs good volume so London hours are best but daytime hours, there's
AUDUSD / AUDJPY / EURJPY / USDJPY.
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