Hi all,
I'm going to explain the strategy I use to trade GJ and I'm going to be posting my weekly/daily analysis of this pair.
I don't use anything fancy, I use some basic stuff that most traders use and some common sense
The indicators I use are:
- Fibonacci retracement levels
- Trendlines/Channels
- 5 period simple MA
- Candlestick patterns
- Support/Resistance levels
As you can see it's all simple and basic stuff except maybe for the fibonacci retracement, because every trader could use it differently. If you have any doubts about any of the stuff I use, either ask or just do a simple google search and you'll find plenty of information about them.
Using the fibonacci retracement on different timeframes (1H, 4H, Daily, Weekly) is very important, because sometimes some of them overlap and that tells us where we might find strong support/resistance. I'll post some examples.
If you have been following my posts on Auslanco's thread, you will know that we use the 5SMA for a good entry point when a retracement occurs (Thank you Auslanco).
Most of the time, I trade based on the 4H chart, but I keep an eye on the daily chart and sometimes the weekly chart. I use the 1H chart for a good entry point. Any TF less than 1H has a lot of noise and it is very risky trading GJ on very small TF's.
Using stop-loss, I always wait for my trade to go in my direction for about 50-100 pips before I move my SL and lock in a very small # of pips (10) and then just let it run until it reaches my TP, this way I don't let a winning trade turn into a losing one, and if my SL gets hit, no worries coz +10 is way better than anything negative
u may want to add 200ma on a 5 min chart
