I don't like when people begin their threads with their life story or whatever... We are here to trade forex and to find profitable strategies right?
Well today i'm finally sharing something i have been trading for a while now, i will try to be as clear as possible but i'm not a native english speaker nor writer so forgive me for any spelling error or if i simply write like shit...
Anyway, straight to the point, the strategy evolves on the 7:00 and 8:00 (1H chart) candles (London UTC time!)
We are going to look for a kind of stop hunt of the 7:00 candle, i'm going to show you a few images that will explain the concept better.
As you can see the 8:00 candle breaks the low or the high of the previus candle to then retrace and close on the opposite side, this brings us to a main concept of the strategy, for this to work we need the two candle to be the opposite color, so if the 7:00 candle is bearish we want the 8:00 candle to be bullish and viceversa.
So for a bullish signal we want the 7:00 candle to be bearish and the 8:00 candle to break the low of the 7:00 candle with his wick.
For a bearish signal we want the 7:00 candle to be bullish and the 8:00 candle to close bearish and his wick needs to break the 7:00 candle high.
That's it, the pattern is this...
- Being this strategy based around the london traders it must be used only on EUR and GBP pairs.
- Fridays seems a bad day to trade this.
Take Profit and Stop Loss:
Here comes the though part... There are 2 ways to trade this:
- 20 pips TP and 20 Pips SL
- 100 Pips TP and 100 Pips SL
BUT especially for the second way of trading it, it's important to close the trade with a profit or a loss either at the london session close or at 20:00-21:00 (UTC)
Update: Forex-Jedi Suggestion: relate your TP and SL levels to Average True Range (perhaps daily 5 period?) or any other volatility measure you prefer. (because a fixed TP or SL doesn't take into consideration the market volatility)
Let's see a few recent examples: (1H Chart)
EUR/USD 6 Dec 2018 (+40 Pips)
EUR/USD 28 Nov 2018 (+100 Pips)
GBP/USD 28 Nov 2017 (+70 Pips)
I will update the thread with more infos more examples etc soon... I'm currently posting a video on youtube where i explain the strategy soon it will be available.
This strategy is OPEN to improvements, suggestions etc anybody with any idea on how to improve the strategy please feel free to say it.
We currently have a telegram channel as well where we post analysis and signals to trade, feel free to join us: https://t.me/BeSomebodyFX