What type of trading system is this?
What time frames does this system work on?
What indicators do I use and how are they used?
FR Root Indicator: This is an indicator a buddy and I made a long time ago. I use it mainly to help my draw trendlines and to help visualiz divergence.
Stochastic: It assists with divergence and catching an entry that is too fast of the FR_Root indie. Mostly used if price has absolutely hit either the red or green trendline.
How long have I been trading this method?
What is the risk/reward ratio per trade?
Is this a Martingale System?
What pairs does the system work with?
Why am I posting this method?
What is the objective of the trading method?
Trend Channel Indicator (Settings 120,4):
This indicator is like a static support/resistence indicator to me. Helping me idnetify the current range, trend, swing highs and swing lows. The indicator consists of 5 lines. Basically I am concerned with the line each side of the center line, as most of the time, price will stay between these two lines, However, if price does happen to go beyond either of these two lines, nothing changes. In order for me to start looking for short entry, I want price to get fairly close to or beyond my upper red upper channel line. It doesn't have to touch it, as sometimes it won't, but I do want it to get fairly close. If it doesn't get close enough, I will keep my current open trade and wait for another wave in the current swing to take me closer. As such, before I start looking for long trade. I want price to come failry close to or beyond my lower green channel line. Make sence so far?
This indicator really has multiple purposes. First, I like to use it to help me identify divergence, Second, I use this indicator to assist me in drawing my counter trendlines. These counter trendlines are crucial to the system, and getting them right can make all the differnce.
Setting the Stop Loss:
How to draw countertrend lines:
Since there is so much opinion on the best way to draw trendlines, I have from here forward decided to draw all trendlines using primarily my Root Indicator. Using this, there is no more guess work when chosing what points to use. There are a few times when using the root indicator won't work, but there are other ways to deal with those situations, and it doesn't happen very much. Enjoy and Happy New Year -
I hope you enjoy it!