Long term trading
weekly
daily
4 hour
(Hour in a very strong trend)
Use only
1. 40 sma on all 3 time lines
2. S/R and swings esp. on the 4 hour
Rules (all for sell -reverse for buy)
1. weekly
a. price below 40 sma
b. 40 sma with a good point down ***
c. Price swinging down (lower lows lower highs)
2 daily
a. price below 40 sma
b. 40 sma with a good point down ***
c. Price swinging down (lower lows lower highs)
3. 4 hour
a. Price move over the 40 sma or a strong move towards it
b. we have to break up through the last swing high
c. price then moves below the 40 sma
Entry
normally I set "traps" - sell limit
a. either 3 pips below the last swing low
b. if I miss that or want a better entry will set the trap at the 50% fib esp on Pin candles
c. A retest of a broken Support. (Now resistance)
d. A candle entry: in a strong down trend - on all three time frames
(1) price below the 40sma on all 3 time frames
(2) all 3 40sma have good points down
(3) all 3 time frames are swinging down - lower highs and lower lows
- I will take an inside candle or pin or three candle reversals with trend
At time of entries
(1) Price below the 40 sma on all 3 time frames
(2) Price must be making lower lows and lower highs on all 3 time frames
(3) The last swing low is taken out on the 4 hour by 3 pips
Targets and Stops
Stop is 3 pips over the last swing high
Target
a. S/R . esp on the day chart
b. Round numbers
c. 3 to 1 reward-to-risk ratio(RRR). Means a the take profit target that is 3 times the stop loss level
(1) Stop lose will be above the last swing high
(2) Looked to the day chart and week to see if there was a realistic target ie, S/R
(3) Put the target inside the closest Round number before that S/R
Miss and odd stuff
a. I only trade with the trend
b. I do all trades at 2% = I will have up to 6% on at a time
(1) unless some of the trades on are in safe trade mode.. BE+2
c. I always look for 3 to 1 RRR but I have been known to take 2 to 1 RRR
(1) RRR is based on the last S/R high swings esp on the day or 4 hour
(2) But I will use round numbers to shield my trades
d. If I get a 1 2 3 break reversal up (esp on the 4 hour chart)I will close the trade.
e. I check my charts about 3 times a day
f. Never add to a losing trade
g. Only move Stop loss to lock in Profit or make possible losses less
(1) about 75 to 80 pips up move to BE+2
(2) look at moving down each swing higher +3 pips
h. Set and forget - Limit orders
j. swings have to be at least 5 candle - with at least 3 greater lows
(1) inside candles do not count as candles
News
The nice thing about these Time frames is news really does not affect them for the most parts
the only things to watch out for are
a. interest rate days
b. the fed speaking
c. non farm paytroll (It does not have the effect it use to)
d. big world events - wars - facebook - Greece - earth quakes - hurricanes- elections- etc
e. Holidays esp GB -
Pairs I watch
Usd vs Eur, Jpy, Gpb, Cad, Aud,
Jpy vs Eur, Gpb, Cad, Aud,
Eur vs Gpb Cad, Aud
weekly
daily
4 hour
(Hour in a very strong trend)
Use only
1. 40 sma on all 3 time lines
2. S/R and swings esp. on the 4 hour
Rules (all for sell -reverse for buy)
1. weekly
a. price below 40 sma
b. 40 sma with a good point down ***
c. Price swinging down (lower lows lower highs)
2 daily
a. price below 40 sma
b. 40 sma with a good point down ***
c. Price swinging down (lower lows lower highs)
3. 4 hour
a. Price move over the 40 sma or a strong move towards it
b. we have to break up through the last swing high
c. price then moves below the 40 sma
Entry
normally I set "traps" - sell limit
a. either 3 pips below the last swing low
b. if I miss that or want a better entry will set the trap at the 50% fib esp on Pin candles
c. A retest of a broken Support. (Now resistance)
d. A candle entry: in a strong down trend - on all three time frames
(1) price below the 40sma on all 3 time frames
(2) all 3 40sma have good points down
(3) all 3 time frames are swinging down - lower highs and lower lows
- I will take an inside candle or pin or three candle reversals with trend
At time of entries
(1) Price below the 40 sma on all 3 time frames
(2) Price must be making lower lows and lower highs on all 3 time frames
(3) The last swing low is taken out on the 4 hour by 3 pips
Targets and Stops
Stop is 3 pips over the last swing high
Target
a. S/R . esp on the day chart
b. Round numbers
c. 3 to 1 reward-to-risk ratio(RRR). Means a the take profit target that is 3 times the stop loss level
(1) Stop lose will be above the last swing high
(2) Looked to the day chart and week to see if there was a realistic target ie, S/R
(3) Put the target inside the closest Round number before that S/R
Miss and odd stuff
a. I only trade with the trend
b. I do all trades at 2% = I will have up to 6% on at a time
(1) unless some of the trades on are in safe trade mode.. BE+2
c. I always look for 3 to 1 RRR but I have been known to take 2 to 1 RRR
(1) RRR is based on the last S/R high swings esp on the day or 4 hour
(2) But I will use round numbers to shield my trades
d. If I get a 1 2 3 break reversal up (esp on the 4 hour chart)I will close the trade.
e. I check my charts about 3 times a day
f. Never add to a losing trade
g. Only move Stop loss to lock in Profit or make possible losses less
(1) about 75 to 80 pips up move to BE+2
(2) look at moving down each swing higher +3 pips
h. Set and forget - Limit orders
j. swings have to be at least 5 candle - with at least 3 greater lows
(1) inside candles do not count as candles
News
The nice thing about these Time frames is news really does not affect them for the most parts
the only things to watch out for are
a. interest rate days
b. the fed speaking
c. non farm paytroll (It does not have the effect it use to)
d. big world events - wars - facebook - Greece - earth quakes - hurricanes- elections- etc
e. Holidays esp GB -
Pairs I watch
Usd vs Eur, Jpy, Gpb, Cad, Aud,
Jpy vs Eur, Gpb, Cad, Aud,
Eur vs Gpb Cad, Aud