A quick word before I start: Trading is an art not a science. The rules here might be very clear but you need to have an instinctive sixth sense to benefit from the markets. You will need chart time of a pair to know how it works. I am sure that will come up on my blog as well as on my trading journal here on Forex factory.
TIMEFRAME: 30 Minutes
PAIR: EURUSD/GBPUSD
INDICATORS: Bollinger Bands (34,2)
Stochastic (34,8,8)
Support and Resistance Lines
Pivot Points
Position Sizing.
Use position sizing that suits your trading.
Money Management
Take-Profit - 25 pips
Stop -Loss - Last swing high/Low + 3 pips. Remember that a stop loss is not the price at which you will exit when you realize you are wrong, its the price that the market will take you out if everything goes wrong. Being a day trading strategy, the exit should be manual.
Objectives
As a trader, I believe in having objectives. I know its controversial but I will watch a 400 pip move in a day without trading after making my 25 pips for the day. Maybe one day when I am ready I will start looking for the home runs. But in my losing days, I watched a lot of profits turn into losses waiting for the home run.
My objectives therefore is simple, to make 25 pips per day.
Setting up the charts
The stochastics needs to have the 40 and 60 level lines.
Use period separators too.
Mark important resistance and support levels closest to the price.
Entry
The stochastics need to cross the 40 and 60 level lines. Wait for price confirmation before buying or selling. The confirmation is a close over or below the Moving Average of the BB.
Exit
1. A reversal signal, i.e., a cross of the stochastic 40 or 60 level lines confirmed by a cross of the BB MA. This rule is not cast in stone and that is why I said that you will need to have a feel of the pair. Its not ambiguous for me because I know when the reversal is genuine.
2. A cross of the nearest significant S&R levels. This is one set-up that has a 97% success rate. When you enter a trade and then it reverses immediately closing below/above the immediate S&R level, the chances of hitting the TP is very high.
P.S: When I have a losing first trade in the day, say of 40 pips, then my next trade's TP is 65 pips. Remember that my objective is a total of +25 pips. No revenge trading.
3. The other exit is obviously a hit of your stops either the TP or the SL.
I urge anyone using this system to paper trade it first so as to get a feel of this system.
Great Pipping everyone
TIMEFRAME: 30 Minutes
PAIR: EURUSD/GBPUSD
INDICATORS: Bollinger Bands (34,2)
Stochastic (34,8,8)
Support and Resistance Lines
Pivot Points
Position Sizing.
Use position sizing that suits your trading.
Money Management
Take-Profit - 25 pips
Stop -Loss - Last swing high/Low + 3 pips. Remember that a stop loss is not the price at which you will exit when you realize you are wrong, its the price that the market will take you out if everything goes wrong. Being a day trading strategy, the exit should be manual.
Objectives
As a trader, I believe in having objectives. I know its controversial but I will watch a 400 pip move in a day without trading after making my 25 pips for the day. Maybe one day when I am ready I will start looking for the home runs. But in my losing days, I watched a lot of profits turn into losses waiting for the home run.
My objectives therefore is simple, to make 25 pips per day.
Setting up the charts
The stochastics needs to have the 40 and 60 level lines.
Use period separators too.
Mark important resistance and support levels closest to the price.
Entry
The stochastics need to cross the 40 and 60 level lines. Wait for price confirmation before buying or selling. The confirmation is a close over or below the Moving Average of the BB.
Exit
1. A reversal signal, i.e., a cross of the stochastic 40 or 60 level lines confirmed by a cross of the BB MA. This rule is not cast in stone and that is why I said that you will need to have a feel of the pair. Its not ambiguous for me because I know when the reversal is genuine.
2. A cross of the nearest significant S&R levels. This is one set-up that has a 97% success rate. When you enter a trade and then it reverses immediately closing below/above the immediate S&R level, the chances of hitting the TP is very high.
P.S: When I have a losing first trade in the day, say of 40 pips, then my next trade's TP is 65 pips. Remember that my objective is a total of +25 pips. No revenge trading.
3. The other exit is obviously a hit of your stops either the TP or the SL.
I urge anyone using this system to paper trade it first so as to get a feel of this system.
Great Pipping everyone