This is an experiment which I decided to start under the influence of DazFX Intraday method, with some ideas from Jacko method and help from J16 PA as well.
I will try to test a strategy of trading off Daily Charts, using simple rules: if the Trend is Up, Buy on Dips.
I will Buy on Dips using Fib retracements, Stochastics, 5 Sma and PA as the tools for my trading decisions. Take profit will be at FE 61% and FE 100% mainly.
A great example of what I am trying to achieve is in the below chart, Eur Jpy, 2008.05.12.
Eur Jpy in an uptrend, so we only Buy Dips, i.e. buy right at the close of the long black candle highlighted in yellow. Why? Because it's off Fib 50, it is a Double Bottom, stoch is crossed up, the candle closed above 5 Sma and moreover, its a perfect DBLHC
Buy 3 lots at 161.40, with a stop below the swing low at 158.50. This gives us a risk of 290 pips. Therefore our first TP would be at 161.40 + 290 = 164.30, second at FE 61% = 166.60 and last one at FE 100%, which has not yet been achieved, after almost 2 months.
I would focus on trading only EU, GY, EY and UY with this method, especially because trading on the upside for GY EY and UY can be a very good method of carry trade as well. Imagine how much interest you would have got if you took the above mentioned trade and held it until now, for 2 months
I will try to test a strategy of trading off Daily Charts, using simple rules: if the Trend is Up, Buy on Dips.
I will Buy on Dips using Fib retracements, Stochastics, 5 Sma and PA as the tools for my trading decisions. Take profit will be at FE 61% and FE 100% mainly.
A great example of what I am trying to achieve is in the below chart, Eur Jpy, 2008.05.12.
Eur Jpy in an uptrend, so we only Buy Dips, i.e. buy right at the close of the long black candle highlighted in yellow. Why? Because it's off Fib 50, it is a Double Bottom, stoch is crossed up, the candle closed above 5 Sma and moreover, its a perfect DBLHC
Buy 3 lots at 161.40, with a stop below the swing low at 158.50. This gives us a risk of 290 pips. Therefore our first TP would be at 161.40 + 290 = 164.30, second at FE 61% = 166.60 and last one at FE 100%, which has not yet been achieved, after almost 2 months.
I would focus on trading only EU, GY, EY and UY with this method, especially because trading on the upside for GY EY and UY can be a very good method of carry trade as well. Imagine how much interest you would have got if you took the above mentioned trade and held it until now, for 2 months
We leave no soldier behind.