This thread will be used to post trades that learningtheropes and I analyse by the weekly range trading strategy...with some modifications we mutually agreed on:
One of the main modifications made is the price on the next week must be going in the direction of the trade. For example, if we are going short on a trade at 1.8790 and the price closed at 1.8780 we must wait for the price to go ABOVE 1.8790 and then COME BACK DOWN to 1.8790.
We are also working on an alternative way to take profit.
Refer to this thread for the discussion on this method: http://www.forexfactory.com/forexfor...ead.php?t=8053
All of our threads will be projections on trades for the next week on 8 currency pairs. Hope you enjoy.
Quoting Pip RageDislikedI wanted to design a method so simple that my tend year old son could trade it and didn't take much time. I have visually backtested it and it seems to work most weeks or else doesn't produce a trade.I'm wondering if it's just too mechanical to work long-term. I would love some feedback and any suggestions for improvement would be greatly appreciated
Weekly Range Method – Version 1
Tested on GBP/USD.
After the market closes for the week, mark the past 2 weekly ranges(high/low) and the halfway point of the most recent weekly range(which I’ll refer to as the weekly median).
Your directional bias is determined by comparing these weekly ranges
FADE: If the most recent week’s range is greater than the previous week’s range, then look to fade the most recent weekly direction. Trade it in this way:
If last week was bearish, Buy at Friday’s median, place your limit at the weekly median and place your stop at the weekly high.
If last week was bullish, Sell at Friday’s median, place your limit at the weekly median and place your stop at the weekly low
TREND: If the most recent week’s range is smaller than the previous week's range, then look to trade in last week’s direction. Trade it in this way:
If last week was bullish, buy at the weekly median, place your limit at the weekly high and place your stop at the weekly low.
If last week was bearish, sell at the weekly median, place your limit at the weekly low and place your stop at the weekly high. Do not chase the price. If it doesn't pullback to the median, just let it go and don't trade. The idea when trading with the trend is to enter on a pullback and avoid whipsaws.
The whole method in one sentence: if last week was an expansion week, trade in from the outside and if last week was a contraction week, trade out from the inside.
I hope this makes sense. I'll follow with examples if anyone's interested.
KenIgnored
We are also working on an alternative way to take profit.
Refer to this thread for the discussion on this method: http://www.forexfactory.com/forexfor...ead.php?t=8053
All of our threads will be projections on trades for the next week on 8 currency pairs. Hope you enjoy.
Nothing is hard, some things just take more time and discipline.