I use a simple no stress strategy and i hope you participate finding setups.
It works like this:
find out what the direction of the trend is.
If the trend is bullish, find bearish candles happening now.
Draw a square around the consolidation.
Put a buy stop above the consolidation with a sl below.
Your target is the same distance as your sl.
You make profit because it happens more often then not.
If you find a setup, post it!
Here is an example CAD yen.
its a 9 days of data.
If you risked 0.5% per trade you had 9 wins and 2 loses which is:
(9-2) * 0.5% = 3.5%
profit trading just 1 pair.
The quallity of the setup depends on:
- The length of the consolidation, longer ones are better.
- The size of the previous wave, works better when previous waves are stronger.
- Are there spikes in the consolidation in opposite direction.
- Does not work when news comes out.
- Low spread pairs work better.
- Trading away from pivot points works a better don't enter towards a close by pivot point. If you can put your stop loss behind a pivot point for extra protection.
- Works better when stoch = oversold or divergence.
- You have to take into account the ask and bid price. The chart is made up out of the bid price, your buy stop order will be triggered by the ask price so you must put it a bit higher.
Example of one you should not have sold on breakout.
Reason: It does not come from a strong bear. the longer term trend is bullish.
It works like this:
find out what the direction of the trend is.
If the trend is bullish, find bearish candles happening now.
Draw a square around the consolidation.
Put a buy stop above the consolidation with a sl below.
Your target is the same distance as your sl.
You make profit because it happens more often then not.
If you find a setup, post it!
Here is an example CAD yen.
its a 9 days of data.
If you risked 0.5% per trade you had 9 wins and 2 loses which is:
(9-2) * 0.5% = 3.5%
profit trading just 1 pair.
The quallity of the setup depends on:
- The length of the consolidation, longer ones are better.
- The size of the previous wave, works better when previous waves are stronger.
- Are there spikes in the consolidation in opposite direction.
- Does not work when news comes out.
- Low spread pairs work better.
- Trading away from pivot points works a better don't enter towards a close by pivot point. If you can put your stop loss behind a pivot point for extra protection.
- Works better when stoch = oversold or divergence.
- You have to take into account the ask and bid price. The chart is made up out of the bid price, your buy stop order will be triggered by the ask price so you must put it a bit higher.
Example of one you should not have sold on breakout.
Reason: It does not come from a strong bear. the longer term trend is bullish.