- On the Daily TF mark the trend. I draw the channel. You can use your own method. Check every morning that trend is intact.
- On H1 identify tradingsignals from the SAR.
- When a trading signal occur on H1, go to Daily and H4 to check:
- if the pair is trending
- if the signal is according to the trend direction.
- if the signal is close to the trendline or bounce if you use moving averages etc. Or maybe you use divergencies. Whatever tells you, that a trade might be possible. Taking the trade at the start of the trend has a larger possibility to profit.
- Now back to H1 for checking the trend and price placement in the H1 trend. Don't trade if ranging or price is a mess.
- Maybe look for some PA bar. However I trade anyway.
- I use also HalfTrend as confirmation. Often the SAR signal comes first and I take the trade but keep an eye on the HalfTrend to follow with a signal.
- The Williams Percent Range - located under Oscillators in MT4 - is a good tool. Crossing the level -50 is often a strong signal. In longer trends it stays beyond or below -80 or -20. This is a sign of a healthy trend.
- Set SL at the SAR dot.
I trade many pairs and to secure that I am not missing to nurse any existing trades, I colour the background Navy at Long trades, Purple at Short trades and Black at no trades.
Exits - possibilities
- R/R at 1:1 or 1:2
- S&R exits.
- Trail the SL. For each new bar move the SL to the new SAR dot. Exit will happen automatically when the SAR dies out.
- Go to Daily and trail the SAR dots there after some time, if the trade is going well. But DO NOT move the SL to the daily dot's. First when daily dots has joined you initial SL, then you can begin to trail using Daily SAR dots.
Number 3 is a stummock friendly version. You don't have to concern if you are doing the right thing. Rules are clear and firm, just follow this rule and you can have a nice time.
I like number 4. If you are lucky to get into the beginning of the trend, then follow the price a bit of the way on H1 and then switch to Daily. It can provide a nice Risk Reward.
I am trading this using some PROP accounts.
Backside of this is, that if you manually must trail the dots on your trades and you are using H1, then you must be prepared to watch those screens many hours each day. If there are a number of interested people in this thread, i MIGHT make an EA that trails the dots with auto exit. Then you only have to take the trades, you don't have to move SL each hour. Let's see how it goes.
See the chart in post 13.
Indicators:
The Parabolic is part of MT4. So is Williams Percentage.
Here is the brilliant HalfTrend:
