Not too sure how the Forum will take this but rest assured that it is given with good intention.
Below is a 'trading method' which I believe is profitable. Mind you, any good methodology needs also Good Money Management and Discipline.
This approach is based on the 4 Hr charts and it works a treat for the Major Fx crosses, not just the majors but any substantial crosses, especially against the USD and the JAP.
It works well also for the main indexes: DJIA, S&P, Tech, Footsie, Dax, XJO, Gold and Silver.
These are the Rules in a nutshell:
Trend - as per the overall trend on the Weekly, using the 10 EMA as a prop. If it looks like an Uptrend, then it is a Uptrend and all trades (based on the 4 Hr charts) are to the Longside only.
Indicators: Stochs but defaulted to 25 - 5 - 5
Entries: using the 4 Hr charts; let's assume that the Weekly is in an Uptrend and we're interested in Long entries only.
- first you need the %K to be below 20; Ignore the %D and just focus on the %K;
- once you have that (on the 4 hr) than you look for an Inside Bar set-up. If you don't know what it is, please google it as it would be taking too much space here to explain it;
- you place an Order to Open, 5 pips or points above the High of the Main Bar;
- as I'm sharing my method, I will disclose the full monty and so, we enter 3 separate trades:
- all of them have the same initial Stop Loss which, in Gold's case, is 20 points;
- Trade 3 - Stop 20 points - but we have no set Target for this trade. What we do is this: as soon as Trade 2 comes through, we move the Stop Loss on Trade 3, to Break Even. Then we use the last Swing Low on the Weekly as our Stop. This way we give ourselves an opportunity to pick some real good winners.
Suggestions for other Instruments:
- Silver - Stop 50; T1 - 50, T2 - 100, etc
- Forex Pairs: the ones coupled with the USD - use the Stop 20 pips (as per Gold)
- the ones coupled with the JAP - use the Stop 50 pips (as the Silver trades)
- Please don't touch any other Forex crosses as the volatility and not there.
Dax and Footsie - use the Stop as 50 points, same as Silver.
Attaching a couple of charts for Gold, showing the entries.
The Gold Weekly shows, at a glance, an Uptrend; thus we go Long only.
Gold - the 4 hr - is showing specific entries.
As I mentioned in my previous post, you could just trade the Gold Index and make enough to feed yourselves. And, as Paddy just mentioned this morning, Silver is going great guns and some 'gurus' out there are predicting that Silver is the place to be. I'm sure Gj would know all about the ***** interviews and would have seen this.
Please, if my posts are not 'appropriate' or suitable for this Forum, please let me know and I shall forever remain silent (but still a lurker). And I will not be offended either.
Chart 1 - Weekly - showing an uptrend in place:
Chart 2 - the 4 Hr - showing the last couple of entries: please click on the chart to expand it
(20min delay)