Hi everyone, wanted to post this simple way of making pips and find out if anyone can show there most simple setups for us all to share...
This is based on trading trend line breaks, none of the subjective TLs that seem to get placed almost all over peoples charts but a short term TL drawn on the 1H-15min time frames....
heres the basics....
1/ There is a strong move in price, preferably with a trend already in place and in that direction, but not a requirement.
2/ There is a short consolidation/retracement which we can draw a trend line under
3/ trade the break.
How to trade this will depend on you but it is possible to use a stop loss of 15pips for most pairs or you can also use the high of the retrace.
how you consider the TL broken is also up to you but even a 5-10 pip break is good in most cases. You can also wait for the 15min bar to close but doing this will loose a lot of the move in a lot of the cases.
Quite often we will get some kind of PA trigger bar at the top/bottom of the retracement which can be traded in the conventional way.
The first target or problem area will,in most cases, be the low of the retracement, but of course price can run much further if we catch a trend. This is a great way to add to positions also if you are already in a trade.
AND before you start i consider the TL valid after only 2 touches for this setup.
Warning signs that it is not going to be a good trade are when price meanders along for too long. I like the retracement to be short and sweet capturing the momentum of the previous move, preferably up to a well defined R/S level before showing obvious signs of exhausting.
oh...and i personally prefere a sell off to a long as there seems to be a quicker, stronger move.
have fun...
jon
This is based on trading trend line breaks, none of the subjective TLs that seem to get placed almost all over peoples charts but a short term TL drawn on the 1H-15min time frames....
heres the basics....
1/ There is a strong move in price, preferably with a trend already in place and in that direction, but not a requirement.
2/ There is a short consolidation/retracement which we can draw a trend line under
3/ trade the break.
How to trade this will depend on you but it is possible to use a stop loss of 15pips for most pairs or you can also use the high of the retrace.
how you consider the TL broken is also up to you but even a 5-10 pip break is good in most cases. You can also wait for the 15min bar to close but doing this will loose a lot of the move in a lot of the cases.
Quite often we will get some kind of PA trigger bar at the top/bottom of the retracement which can be traded in the conventional way.
The first target or problem area will,in most cases, be the low of the retracement, but of course price can run much further if we catch a trend. This is a great way to add to positions also if you are already in a trade.
AND before you start i consider the TL valid after only 2 touches for this setup.
Warning signs that it is not going to be a good trade are when price meanders along for too long. I like the retracement to be short and sweet capturing the momentum of the previous move, preferably up to a well defined R/S level before showing obvious signs of exhausting.
oh...and i personally prefere a sell off to a long as there seems to be a quicker, stronger move.
have fun...
jon
PATIENCE... DISCIPLINE
