GBPUSD 10-tick chart strategy/idea (in progress)

After following a lot of advise and examples from James and the gang here, I am moving away from my original idea of being a "Hour trader" [ aka daytrader] and going for the longer term.

So, I'm really curious about giving up a 3-5 pip loss on just the spread, plus operating with only an additional 3-5 pip stop, etc. as you described.

jimbil
i understand what ur saying it makes plenty of sense
since theres no way to know if a trade is gonna be successful heres a few tips to help out

trading the way i told u with the stochastic and everything can work fairly well.(it works very well for me but i have more confirmation and ive got experience to, not saying u dont or anything)

consider trading during big markets lke when europe opens and when it overlaps with the US session

consider placing an atr(average true range) when its low expect the market to break out and move. it doesnt mean a trend necessarily but it could mean volatility. just a nice visual to know when to expect some movement
same with a bollinger band.

think about placing a longer term ma like a 200. this will be more confirmation with price is above it and the 50 is above it means trend is up and strong and u can take positions according to that.

u can also check a higher tick or hour timeframe for the longer term prevailing trend that way u can confirm ur trades some more. using a 10 tick u should glance at a 50 tick chart and check the trend before taking a trade for example

with these tips it should bring ur accuracy fairly high and u should be winning at least 7 or 8 trades outa 10

hope i helped out a bit
take care

I agree

It's not a strategy as yet. I stated in the thread title "strategy/idea in progress"

It also depends on how big a spread you can trade GBPUSD on. In the UK the spreadbet firm WorldSPreads have a 2-pip GBPUSD spread between 0800-1600 UK time. The GBPUSD spread was 1 pips until a few weeks ago.
The EURUSD spread is 1 pips 0800-1600.

I would not consider such a small timeframe if i had to pay a 3-4 pip GBPUSD spread.

Being able to avoid the whippy periods would be the key. Using HH, HL, LL, LH chart interpretation would help.
The problem with this is once you have say HL + HH + HL (= potential breakout/uptrend forming) price would have already crossed above the 50SMA anyway. Or for shorts, LH + LL + LH (= potential breakout/downtrend forming) price would have already crossed below the 50SMA (most likely).

Looking at the charts I've posted, the successessful crosses of 50SMA which seem to present profit opportunities are when price makes a steep run up or down at the 50SMA.
Other visual patterns also exist.

That's pretty interesting actually, I was searching for a while for a tick chart on Metatrader, is it possible?

This may be of use to you on MT4 ... let me know if you have any luck

Put both files in your experts/indicators folder.

I have not used this really but you can enlarge the indicator window size to always full screen size and plot S/R lines, fibs etc. onto the tick lines ... am no expert put I think the different lines are like 3, 5 14 tick EMAs