It is a simple strategy, which a priori, does not need indicators, but it can be useful to use an indicator to see the SMT Divergences.
This strategy is based on taking liquidity from the PDL and PDH (Previous Day High & Low). It can also be used with PWH and PWL (Previous Week High & Low).
The objective of the strategy is to look for a short position when the price reaches the previous day's high, or to look for a long position when the price reaches the previous day's low.
Profit taking will be the opposite place, ie if we take a short position, we will take profit at the previous day's low and vice versa.
The input signals I use are:
- The price if it takes liquidity from PDH, I wait for Open London Manipulation above the Asian session. When the price re-enters the Asian session on the downside, I make my entry. My favorite system is when, in addition, the price makes an SMT Divergence.
- The same happens in the opposite case for longs.
- My SL is above the maximum or minimum.
- The great advantage of this strategy is the risk benefit ratio it offers.
- I use 15-30 minute charts and intraday trading.
I put an example image to understand it.
I attach some indicators that I use for it.
I hope you can use this information and use this system in favor of your technical analysis.
Great advantages of this system is that every day there is an opportunity in some asset.
You just have to wait for a liquidity take in PDH or PDL, wait for the London session, look for an SMT Divergence, and execute your entry.
The SL and TP is very defined, so you can leave your order and enjoy the rest of the day.
A single trade per day is enough to generate enough profit.
Saying a 1:3 profit ratio is also a good time to close. In the long run, this ratio will give you great returns.
The losses with this system are very few, and the benefits are very large.
I hope you enjoy this system.
