I just wanted to share a simple little approach that has been working well for me. I think this is a solid method, especially for newcomers as there isn't much to it and it can be effective quite often.
Daily 14 Channel
- 14 SMA applied to high
- 14 SMA applied to low
- 200 EMA (applied to close) for trend direction
When a daily candle closes outside of the channel in the direction of the trend shown from the 200 EMA, open a trade. Simple as that. I recommend daily candles, as the signals tend to be more reliable (more price action = more certainty). I suppose this can be done on lower time frames, but I prefer the daily. The only situation I tend to avoid is when price is trading around the 200 EMA or the 200 EMA is relatively flat. In those cases I tend to stay on the sideline until a clear trend emerges.
For a stop loss, I use a combination of ATR and S/R levels. I would say that my average stop is somewhere around 150 - 175 pips. My TP is usually in the 200 pip range with my stop moved to break-even after 100 pips gained... Honestly, there are a hundred ways to manage a trade once you're in (as we all know)... Do what works best for you in that regard.
Happy trading everyone
Daily 14 Channel
- 14 SMA applied to high
- 14 SMA applied to low
- 200 EMA (applied to close) for trend direction
When a daily candle closes outside of the channel in the direction of the trend shown from the 200 EMA, open a trade. Simple as that. I recommend daily candles, as the signals tend to be more reliable (more price action = more certainty). I suppose this can be done on lower time frames, but I prefer the daily. The only situation I tend to avoid is when price is trading around the 200 EMA or the 200 EMA is relatively flat. In those cases I tend to stay on the sideline until a clear trend emerges.
For a stop loss, I use a combination of ATR and S/R levels. I would say that my average stop is somewhere around 150 - 175 pips. My TP is usually in the 200 pip range with my stop moved to break-even after 100 pips gained... Honestly, there are a hundred ways to manage a trade once you're in (as we all know)... Do what works best for you in that regard.
Happy trading everyone