So while not much is happening with the Day charts, time for more back testing and training charts.
The EJ Day chart shows a great Set Up Candle SUC with the Entry Candle EC two candle later.
Usual criteria for TP1 and SL or as a more cautious approach an option can be to use 1XATR7 for TP1 with the SL set to the previous swing H.
Now for the fun. Once you have entered on the Day Chart, switch to the H4 to manage Add-Ons as they occur more frequently than on the Day Charts.
Add-On Candles AOC occur on the fractal lows. Not all of them will trigger - in the H4 chart, AOC 2 and AOC 4 do not trigger.
For this scenario, TP1 would have triggered and achieved 2XATR7 = 280pips, or for the more cautious approach 140pips
TP2 would currently be achieving 300 pips and would still be open as would the Add-Ons
AOC 1 = 170pips
AOC 3 = 120pips
AOC 5 = BE
The benefits of this approach are that you can scale into a successful trend by managing entries on the H4.
For an ongoing pip management strategy the SL would need to be moved (depending on your risk tolerance and if you survived the DrawDown DD of 140pips during 4/9) seeing as there have been no new Fractal Highs on the H4. My approach would be to take a recent swing H - The 12:00 candle from 4/10 would be reasonable and this would allow approx 90 pips of breathing space and would only risk 50 pips on each open position based on the current price.
When checking on the Day Chart, the last major support level (Fractal Low) is currently acting as a stall point at 105.62. If this is cleared with a candle closing, that will keep the PA below the Day 100ema and the 200ema.
Possible next support level would then be another 200pips away with more pips possible.
Back test this as an additional strategy and get comfortable with identifying Add-Ons.
The EJ Day chart shows a great Set Up Candle SUC with the Entry Candle EC two candle later.
Usual criteria for TP1 and SL or as a more cautious approach an option can be to use 1XATR7 for TP1 with the SL set to the previous swing H.
Now for the fun. Once you have entered on the Day Chart, switch to the H4 to manage Add-Ons as they occur more frequently than on the Day Charts.
Add-On Candles AOC occur on the fractal lows. Not all of them will trigger - in the H4 chart, AOC 2 and AOC 4 do not trigger.
For this scenario, TP1 would have triggered and achieved 2XATR7 = 280pips, or for the more cautious approach 140pips
TP2 would currently be achieving 300 pips and would still be open as would the Add-Ons
AOC 1 = 170pips
AOC 3 = 120pips
AOC 5 = BE
The benefits of this approach are that you can scale into a successful trend by managing entries on the H4.
For an ongoing pip management strategy the SL would need to be moved (depending on your risk tolerance and if you survived the DrawDown DD of 140pips during 4/9) seeing as there have been no new Fractal Highs on the H4. My approach would be to take a recent swing H - The 12:00 candle from 4/10 would be reasonable and this would allow approx 90 pips of breathing space and would only risk 50 pips on each open position based on the current price.
When checking on the Day Chart, the last major support level (Fractal Low) is currently acting as a stall point at 105.62. If this is cleared with a candle closing, that will keep the PA below the Day 100ema and the 200ema.
Possible next support level would then be another 200pips away with more pips possible.
Back test this as an additional strategy and get comfortable with identifying Add-Ons.
Attached Image(s) (click to enlarge)
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