hey guys..
after reading schlossberg book, i've decided to create my own system which i will use for the next 30 days. then i'll evaluate the success/failure percentage..
but i also would like to hear from the veterans here to criticize, comment or suggest anything to my system
here it is:
Pick a currency pair to trade for the day
Look at 60 min chart. And do a fib retracement/extension from the lows of the past 3-4 days to the highest point (if the price is in a general uptrend, and vice versa if the price is in general downtrend)
I make notes of these various fib levels and i look closely at the candlestick patterns at the moment. I basically learning all the patterns in steve nison's book and look how the candlestick chart is behaving near these fib levels. If there are dojis, stars, dark clouds, or whatever that may hint into a trend reversal or hesistation at a critical fib, i am assuming a price rebound or continuation, and this would be my signal to buy or sell. Prior to buying or selling, i have to make sure that the price breaks (or rebounds) at least 10-15 pips off the level. The main thing is i look at buy or sell bias (shadows) off the candlesticks and see which direction it is likely to go. If i'm not sure i look at 15, or 10 min to see it even clearly. I also use mva 7,20, parabolic sar, rsi to confirm this.
Once i determined a buy or sell signal. i set a stop at a previous fib level and a limit at the next fib level. If at anytime the candlestick shows a reversal, i move my stop to lock in a little profit. If it reverses then i make lil money but if it continues, then my limit stands and i make as i intended.
So that is my system. I mainly look at the 6 majors usd/jpy, usd/cad, aud/usd, euro/usd, usd/chf, gbp/usd and see where there are in relation to the fib levels. The two closest ones that show the most promising trades are what i go for.
Now go ahead and give your two cents
ps.i also was thinking into adding a lot every time the chart moves my way 10 pips. but i 'm not sure this is a good move
after reading schlossberg book, i've decided to create my own system which i will use for the next 30 days. then i'll evaluate the success/failure percentage..
but i also would like to hear from the veterans here to criticize, comment or suggest anything to my system
here it is:
Pick a currency pair to trade for the day
Look at 60 min chart. And do a fib retracement/extension from the lows of the past 3-4 days to the highest point (if the price is in a general uptrend, and vice versa if the price is in general downtrend)
I make notes of these various fib levels and i look closely at the candlestick patterns at the moment. I basically learning all the patterns in steve nison's book and look how the candlestick chart is behaving near these fib levels. If there are dojis, stars, dark clouds, or whatever that may hint into a trend reversal or hesistation at a critical fib, i am assuming a price rebound or continuation, and this would be my signal to buy or sell. Prior to buying or selling, i have to make sure that the price breaks (or rebounds) at least 10-15 pips off the level. The main thing is i look at buy or sell bias (shadows) off the candlesticks and see which direction it is likely to go. If i'm not sure i look at 15, or 10 min to see it even clearly. I also use mva 7,20, parabolic sar, rsi to confirm this.
Once i determined a buy or sell signal. i set a stop at a previous fib level and a limit at the next fib level. If at anytime the candlestick shows a reversal, i move my stop to lock in a little profit. If it reverses then i make lil money but if it continues, then my limit stands and i make as i intended.
So that is my system. I mainly look at the 6 majors usd/jpy, usd/cad, aud/usd, euro/usd, usd/chf, gbp/usd and see where there are in relation to the fib levels. The two closest ones that show the most promising trades are what i go for.
Now go ahead and give your two cents
ps.i also was thinking into adding a lot every time the chart moves my way 10 pips. but i 'm not sure this is a good move
Working towards CME membership