I've designed this system especially for those who do not like to trade shorter time frames such as myself. With owning a business I don't have the time to get up at 2 a.m. and sit in front of my screen all night long and then go to work at 8 a.m. I enjoy spending time with my family and this system allows me to do that.
The only indicator I use is my Murrey indicator, Magnified Market Price indicator (for visuals only), and the ZigZag indicator for directional confirmation and possible early exits. I use the daily because as we all know Murrey indicators (no matter which version you use) after a certain amount of time will redraw a new cycle of Murrey lines when the old one is completed and will usually be different every time. Sometimes you may not get the indicator to redraw for 6 months or more. I can use all of the 25 pairs listed below (because the system trades so infrequently) plus I am testing out the Gold Charts. You may trade any pair with this so chose whatever you like, especially if you have pairs like Gbp/Try, Eur/Try, and Usd/Try. The reason why is I only take trades if I can earn positive swap, and the Try pairs are the best for this.
Eur/Usd, Gbp/Usd, Aud/Usd, Nzd/Usd, Usd/Chf, Eur/Chf, Gbp/Chf, Cad/Chf, Nzd/Chf, Aud/Chf, Usd/Jpy, Eur/Jpy, Chf/Jpy, Aud/Jpy, Cad/Jpy, Gbp/Jpy, Nzd/Jpy, Usd/Cad, Aud/Cad, Gbp/Cad, Eur/Gbp, Gbp/Aud, Gbp/Nzd, Aud/Nzd, Eur/Nzd, and Gold.
Ok, here we go. The basis for the system is we are going to set up three Buy Limit or Sell Limit pending orders at these Murrey levels and double lot size as we break lower or higher on the ladder. For example, for shorts place trades as such:
8/8 -1 lot
+1/8 -2 lots
+2/8 -4 lots
For longs place you trades like this:
0/8 -1 lot
-1/8 -2 lots
-2/8 -4 lots
You can put whatever lots sizes you want in there. I scale in as I go up or down to help gain back a losing position as price rebounds from these critical levels. Why? Keep in mind that price doesn't always stop at the 8/8 or 0/8 levels like you'd think they would. A lot of times the price will break through and go on to hit the +1/8 and -1/8 levels and, on occasion, the +2/8 and -2/8 levels.
Before placing these orders I check where the price is in relation to the middle 4/8 Murrey line. If above, I look to place pending orders at the overbought levels. If below, I'll place them at the oversold levels.My Initial stop will be a little bit past the +2/8 or -2/8 levels and you may trail it if you like but I don't move my stops until I break a couple of levels. If you still want trail it I suggest to take the difference between two Murrey lines X 2 to allow room for the trade to breathe. You will experience some bigger drawdowns because of the larger timeframe, stops, and take profit levels, so please use smart money management to trade safely.
Take Profit is always up to your discretion but I will be using the 2/8 and 6/8 strong levels for my take profit. Sometimes if I get an opposite arrow with the ZigZag indicator I may look into closing the trade early to be safe and not be too greedy. And again, take advantage of these longer trades by only looking to take the trade as long as you can earn positive swap!