GBPUSD is ranging on the 1 hour time frame. So I have entered two pending orders, which ever one gets triggered first the remaining pending order is closed. Entries are Green, Stops are Red, profit targets are gold.
Rules for Ranging
1. Check Economic Calendar for announcements in the next 24 hours to eliminate any pairs that have non farm payroll or interest rate announcements up coming. Wait until all major announcements are posted for the current 24 hours On the default screen, add the 60 period Smooth Moving average.
2. Start by scanning currency pairs on the time frame you want to trade. Look for a pair that is ranging with at least a 20 pip spread between the high and the low of the range. If the spread is more than 40 pips, trade “apply the “Trading inside a range strategy”. Draw two horizontal lines one at the top of the range and the other at the bottom of the range.
3. Make 2 pending entries, one 5 pips above the top horizontal line and one 5 pips below the bottom horizontal line. Wait for price to break and close outside the upper or lower lines. What ever one is triggered first is your entry; immediately delete the other pending order.
4. Stop is placed at the half way point of the range. First take profit is double the stop loss in the direction you’re trading.
Rules for Ranging
1. Check Economic Calendar for announcements in the next 24 hours to eliminate any pairs that have non farm payroll or interest rate announcements up coming. Wait until all major announcements are posted for the current 24 hours On the default screen, add the 60 period Smooth Moving average.
2. Start by scanning currency pairs on the time frame you want to trade. Look for a pair that is ranging with at least a 20 pip spread between the high and the low of the range. If the spread is more than 40 pips, trade “apply the “Trading inside a range strategy”. Draw two horizontal lines one at the top of the range and the other at the bottom of the range.
3. Make 2 pending entries, one 5 pips above the top horizontal line and one 5 pips below the bottom horizontal line. Wait for price to break and close outside the upper or lower lines. What ever one is triggered first is your entry; immediately delete the other pending order.
4. Stop is placed at the half way point of the range. First take profit is double the stop loss in the direction you’re trading.
Nobody ever went broke closing a trade in profit