Hey All,
Timon Weller here from www.forexreviews.info and I wanted to share a really simple trading system or strategy. So simple that there is little to explain or go over. I have been using this strategy for ages, it is not my only trading strategy but it one I do as part of my trading efforts. I trade many price action techniques, this is one that is easy and effective.
This is the one I use on the Weekly chart for good profits.
Now these trades do not happen often, I get around 5 to 6 good ones a year, but when they do happen they are usually always good. In fact it is not hard to get more than 500 to 600 pips in a couple of month move. That is the beauty of the weekly chart, this system after back testing on multiple charts has a more than 85% success ratio. And yes i have done years of back testing on multiple chart and yes i trade it as well. This system was developed from experience, the weekly gets rid of noise on the charts.
I do however recommend only using on major trending pairs such as the EURUSD, GBPUSD or EURAUD to name a few, there are about 30 pairs it works well on..
Basic Rules.
1. Wait for good up move and then bearish engulfing. Often a move of over 5 to 9 candles is expected in each weekly candle move.. So take note of that..
2. Or wait for good down move and then bullish engulfing
3. Enter trade 10 pips above or below in direction as order
4. Put stop loss above or below candle depending on direction..
5. As candles move move stop up below or above closed weekly candle to lock in profits as it goes..
6. Hold until opposing candle or your target..
7. BE use is up to you, I like to use it after first weekly candle close or if uncertain after 50 pips..
Why It Works?
It works because a bullish or bearish engulfing change in a chart signifies a major change in trend. For over a week the bulls or bears have control now and this is different to previous trend.. Think on over a week of opposing control.. It makes sense that most times it keeps going after a week of move does it not..?
By entering after candle change you are getting in at the beginning of a trend.. By holding until opposing candle again it means you most likely are getting out at the end of trend. It is that simple.. Not uncommon to get more than 500 pips.. In the chart below it shows how i captured 1000 pips one move and then 500 pips in second move with the simple price action strategy.
Example on EURAUD weekly..
Example on EURUSD weekly
Example on GBPUSD weekly
Let me know if you have any questions on method and I would be happy to do a video to show how effective as well.
http://www.youtube.com/watch?v=kGRbBSpm44U
Above is a video I did on the strategy.
Comment your questions below..
Regards,
Timon Weller
http://www.forexreviews.info
Timon Weller here from www.forexreviews.info and I wanted to share a really simple trading system or strategy. So simple that there is little to explain or go over. I have been using this strategy for ages, it is not my only trading strategy but it one I do as part of my trading efforts. I trade many price action techniques, this is one that is easy and effective.
This is the one I use on the Weekly chart for good profits.
Now these trades do not happen often, I get around 5 to 6 good ones a year, but when they do happen they are usually always good. In fact it is not hard to get more than 500 to 600 pips in a couple of month move. That is the beauty of the weekly chart, this system after back testing on multiple charts has a more than 85% success ratio. And yes i have done years of back testing on multiple chart and yes i trade it as well. This system was developed from experience, the weekly gets rid of noise on the charts.
I do however recommend only using on major trending pairs such as the EURUSD, GBPUSD or EURAUD to name a few, there are about 30 pairs it works well on..
Basic Rules.
1. Wait for good up move and then bearish engulfing. Often a move of over 5 to 9 candles is expected in each weekly candle move.. So take note of that..
2. Or wait for good down move and then bullish engulfing
3. Enter trade 10 pips above or below in direction as order
4. Put stop loss above or below candle depending on direction..
5. As candles move move stop up below or above closed weekly candle to lock in profits as it goes..
6. Hold until opposing candle or your target..
7. BE use is up to you, I like to use it after first weekly candle close or if uncertain after 50 pips..
Why It Works?
It works because a bullish or bearish engulfing change in a chart signifies a major change in trend. For over a week the bulls or bears have control now and this is different to previous trend.. Think on over a week of opposing control.. It makes sense that most times it keeps going after a week of move does it not..?
By entering after candle change you are getting in at the beginning of a trend.. By holding until opposing candle again it means you most likely are getting out at the end of trend. It is that simple.. Not uncommon to get more than 500 pips.. In the chart below it shows how i captured 1000 pips one move and then 500 pips in second move with the simple price action strategy.
Example on EURAUD weekly..
Example on EURUSD weekly
Example on GBPUSD weekly
Let me know if you have any questions on method and I would be happy to do a video to show how effective as well.
http://www.youtube.com/watch?v=kGRbBSpm44U
Above is a video I did on the strategy.
Comment your questions below..
Regards,
Timon Weller
http://www.forexreviews.info
