{quote} Hey there. You seem to have a great habit of catching highs/lows, what is your methodology? I know you don't get it right all the time but you do seem to have a higher % than most. I'm interested to learn
If anything, you know this pair is a ranging pair. To put it in digger's words, on a 24 hour basis the pair moves back and forth maybe 60, 70 pips on average give or take. Whatever the trend is, the pair tends to only close 8 to 15 pips higher or lower (respectively) than the previous day. We also know that Asian session tends to have the pair range, early Frankfurt and London hours is when the trend for the day starts, and a couple hours into New York is when it generally sees some retracement. These would be the rough periods where I try to look for entries.
On higher timeframes you can pick out strong S/R levels, which really is the key to everything I feel. Again, credits to guys like Digger, okshop, Ata's magnetic lines but you can scroll through the charts they regularly share to see what I mean. Whenever price approaches these levels, I step down to M5 and then M1 thereafter. I use momentum indicators (RSI, A/D, and recently Dingoman's Stoch settings of 15/5/5) to see if there's still 'space' for the pair to move lower on M5. If its more or less 'tapped out', I step down to M1 to snipe an entry. Admittedly it doesn't work all the time, but when you snipe at key levels there's almost always a bounce so you can quickly put your trades to BE or BE +1. I've been criticised for this a lot, and understandably, because a good 70% of my trades end up getting stopped out at +1 or +2 so this might not suit what you're looking for. I think I also have a higher % of getting stopped out of a good trade and not making anything
But for me and my psyche, this works best for me because I prefer staying risk free and if sacrificing some profits and missing some moves means next to no drawdown then that's fine.Never been good at explanations but I hope this helps somehow.
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