I have been trading for the better part of 2 years and have taken more of a risky approach towards trading in which I would place heavy lots on a small account. At one stage I had a 50k account from a 2k start but in the end the market took what was due.
I have bounced around from system to system and even had a 'mentor' in the form of someone I paid to provide trade signals and advice.
After all this I have found what works for me is a naked chart with 3 emas, those being 8, 32 and 200.
I begin my trading session with a top down view starting at daily, 4 hour, hourly and then 5 min (entry) chart.
Looking at the daily I look at simple price action with regards to the ema's to determine if there is any trend.
I then drop down to the 4 hour to see if price action corresponds to the daily with regards to trend.
If all looks good on the 4 hour and I can see potential for upwards or downwards movement I move onto the hourly exclusively using the emas to find price points that correspond to the emas.
Generally I use the 8 and 32 emas as a maybe trade. If I find price action reacts strongly to these I will chose to view the 5 min chart for an entry.
For a higher probability trade the 200 ema is where its at. If I can see price on the 1 hr chart reacting to the 200ema coupled with a previous structure point this will be a high potential trade in which I will use the 5 minute price action for entry.
The key to this system is using price action with exponential moving averages and structure points.
The main price action I look for is a bullish or bearish englufing, although there are other signs that are worth trading on if price is at a structure point and you want to get in early with low risk.
I realise I haven't covered the entire scope of my system, it's very personal to me and alot is based on instinct.
I place my stop loss at the top or bottom of the previous candle or at which point I realise that if price hit that point I would then be in the wrong.
The most important part of my strategy is patience and waiting for the right setup. I couldn't count on my fingers and toes how many times i've entered long or short before the candle has closed and lost the trade.
I'm posting this because I am always searching for information, and would welcome any advice.
Thanks
I have bounced around from system to system and even had a 'mentor' in the form of someone I paid to provide trade signals and advice.
After all this I have found what works for me is a naked chart with 3 emas, those being 8, 32 and 200.
I begin my trading session with a top down view starting at daily, 4 hour, hourly and then 5 min (entry) chart.
Looking at the daily I look at simple price action with regards to the ema's to determine if there is any trend.
I then drop down to the 4 hour to see if price action corresponds to the daily with regards to trend.
If all looks good on the 4 hour and I can see potential for upwards or downwards movement I move onto the hourly exclusively using the emas to find price points that correspond to the emas.
Generally I use the 8 and 32 emas as a maybe trade. If I find price action reacts strongly to these I will chose to view the 5 min chart for an entry.
For a higher probability trade the 200 ema is where its at. If I can see price on the 1 hr chart reacting to the 200ema coupled with a previous structure point this will be a high potential trade in which I will use the 5 minute price action for entry.
The key to this system is using price action with exponential moving averages and structure points.
The main price action I look for is a bullish or bearish englufing, although there are other signs that are worth trading on if price is at a structure point and you want to get in early with low risk.
I realise I haven't covered the entire scope of my system, it's very personal to me and alot is based on instinct.
I place my stop loss at the top or bottom of the previous candle or at which point I realise that if price hit that point I would then be in the wrong.
The most important part of my strategy is patience and waiting for the right setup. I couldn't count on my fingers and toes how many times i've entered long or short before the candle has closed and lost the trade.
I'm posting this because I am always searching for information, and would welcome any advice.
Thanks