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Hi Seld,
My appologies. The thing is, it is a bit ong winded and also I wanted to run it through somebody before posting it.
I am conscious of leading others astray. I don't enjoy lossing and feel even worse when I cause others to loose.
However, I'll give you the gist of it:
- open a pair eg. Eur-Jap onto the 1 Week - 1 Hour chart
to ascertain what the market has been doing and where at it is now
- then open another chart for te same pair but on the 2 day - 15 minutes chart
- place a Simple Moving Average of 20
From here onwards we're going to use the 2 Day - 15 minutes chart, ok ?
Let's say the market has been going up (as from the Weekly chart).
We wait until the price has retraced i.e. it broke down through the MA and has had at least 2 bars closing below the MA.
Then the price goes up again and it has made at least 2 closes above the MA.
We have to be patient and until the price has again come down below the MA with at least 2 closes below the MA.
However, this time, the Low of the price is Higher then the immediate previous Low i.e. it forme d a Higher Swing Low, thus indicating that the price could well be on the way up again.
Still with me ?
We are going to until for the price to continue its move upwards.
Once the price goes 2 pips above the highest of the previous higest bar (before the preceeding retracement), you place a Buy (or Long) entry, with a Stop Loss 2 pips below the immediate Swing Low. For this pair it should be no more than around 20 pips.
For the Limit do as follows:
- you can place a Limit order 60 pips from Entry ( giving you a Risk to Reward Ratio of 3:1 /1) or
- you can ride the market by moving your Stop Losses upwards as the market unfolds. However, I am not too sure how to best use this approach.
It is true that we should let our winners ride but I need your assistance with this aspect as the market can turn again you very quickly, as you know.
CHEERS TO ALL AND THE BEST FOR 2008
Soccer
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