{quote} Ok. Very nice ! You mentioned you do not trade the daily chart , however do you look at the daily direction first before you even consider opening a trade on 4h so you know your following the trend of the grandmother on Daily ? Top down analysis also when you enter on the indication from the oscillator do you wait until the bar is deep red or deep green ? Or do you enter even if it’s light grey indicating a cross over of 50 but trend is not yet established strong yet in your direction.
I wait until the oscillator is red/green because that means the two stochs and RSI are over the 50 line as per RH's rules. I completely disregard the grey bars - they are of no consequence to me. Of course, all the other rules apply as well i.e. Hull crossed over the EMA, entering on the first to third candle only when the oscillator turns red at a candle close. RH's entry rules are clear as the day is long which is what I like about his methodology and why I like the oscillator vs the three separate indicators. Man, you give a trader one slight tiny bit of discretion and he is going fork it all up - every single time
Again, look back at the charts I've posted as they clearly show the trade set up conditions. I try my best to follow all of RH's entry rules and I have chosen, for now, a fixed take profit as my exit strategy which is one if his suggested exit methods. I have chosen a fixed take profit based on my own observations of the charts and what makes sense to me, although I do see the merit in letting trades run and letting the indicators tell me when to get out, I am just not there yet. Baby steps
I am finding success with RH's methods in part because of his methods (they are sound and make sense), but mostly because I am exercising the discipline and patience to follow them and execute them consistently - as best I can (good ol' emotional demons are difficult to vanquish). The more success I find from his methods the more I trust in placing the trades based on what the indicators are telling me and not what I think or wish would happen.
Emotion - it steals your money.
EURUSD is currently moving ~100 pips per week over the last four weeks so lots of room to hit a 2R.
