Jack.Canadia's Method of Trading.

I posted in the G/U thread that I would provide my methods for trading to all those who were interested. It's no holy grail, but merely what I feel to be a simple, effective way to analyze the market for GBP/USD.

I do analysis with metatrader 4 (many brokers offer demo accounts).

Trend is defined by the 4-hour and daily charts. No moving averages.

I look for trade setups on the 1-hour chart (this one has moving averages and a few other indicators), and refine my exact entries on the 1-minute chart when it's time.

The maximum stoploss I use is 30 pips. I look for quality in trading, not quantity.

I will trade with the trend and against it. Money is made both directions, but more is to be made with the trend.

That's enough for the intro I think.

I trade both directions, regardless of trend.

But seeing the trend is easy. Look at a daily chart. What does it say?

As of recent, we are in an uptrend on the daily chart, given by higher highs (white boxes) and higher lows (yellow boxes).

A time where the market seems to be moving sideways, making random highs and lows without direction, we have a sideways, or consolidating market (second daily chart). Well, you can clearly see a downward direction in this, but all-in-all nothing is perfect and I consider that a sideways market. It consolidated before breaking the the direction of the overall trend, down.

And of course a downtrend is the exact opposite of an uptrend.

The medium-long term trend to me is valid as shown on a 4-hour and daily chart, nothing lower.

All kinds of trends develop on the 1 hour and 15-minute, so many you may go crazy.

Look at a daily and say, "what is the big picture". If you can answer that, you have your answer on trend.

The 1-hour chart. Looks pretty.

Daily Pivot Points
21 EMA (blue)
55 EMA (black)
89 EMA (pink)
MACD (12,26,9)

I will show how I use this setup on the most recent price data. I could select the best, but what good is a system if you dont show the ups and downs.

First of all, research pivot points and MACD. I will not provide what it does. MACD only serves one purpose to me, and thats divergence. I will assume you know what that is.

Ok I will go from the area indicated on the daily chart below and explain how we may have been able to anticipate each move technically with the above hourly chart.

Hi Jack.

Do you have any plans on continuing this thread and further describing your method of trading?

I'm always one for being educated.

Go Here

http://www.forexfactory.com/showthre...78#post2780978