Journey to become top strategy manager 2 replies
A New Trader's Journey to Success 5 replies
Below I have a screenshot from my Excel file where I keep track of my trades. (P.S. It has been cleared out)
In the picture below you can see that when price touches the channel it often creates a key structure. If you look for touches in that zone shortly before you will most likely find them. That confirms that zone is a key price structure.
If you look in the future (based on the image) the price is likely to reverse in that area or break through. In either case this strategy will show how you can benefit from those opportunities.
You can see in the second picture that even though price left the channel, the key price structure used by the channel is still important and relevant. Therefore it will remain valid for the near future. This example actually gave me a trading opportunity this morning in which I made 35 pips.
I will show trading examples (including this one) later on, after I finish explaining the strategy.
In the picture it shows all 3 conditions.
Condition 1: Retest a Key Price Structure (Range situation)
Condition 2: Break a Key Structure (Trend situation)
Condition 3: Breakout
I will go in more detail what each condition means soon
Switch to a LTF, in my case the 1H chart
As mentioned before, for the Breakout condition you enter on the break after the candle closes. (Picture 3)
DislikedWow, what a very nice description of your trading system, with great pictures. This is very helpful. Sometimes I trade channels as well. I wonder if having the major Support and Resistance lines (from past months and years) would help your system, or not. To clarify, it seems that most of your observation takes place in the higher timeframe, even your entry criteria. What then was the purpose of using the lower TF? Again, thanks for the wonderful posts.Ignored