Pairs:
NZDJPY, EURJPY & AUDJPY. May work on other pairs.
Time Frame:
Daily Chart.
Setup
Short:
1. Today closes a bar with upper wick (at least 15% of bar)
2. Tomorrow spikes higher than yesterday's high but closes below yesterday's high. This bar must have a RED body or be followed by a bar with a red body...EXCEPT in the case of a shooting star.
3. Go short no more than 30 pips from yesterday's high and set a 50 pips stop and 100 pip limit
Long:
1. Today closes a bar with lower wick (at least 15% of bar)
2. Tomorrow dips lower than yesterday's low but closes above yesterday's low. This bar must have a BLUE body or be followed by a bar with a blue body...EXCEPT in the case of a hammer.
3. Go long no more than 30 pips from yesterday's low and set a 50 pips stop and 100 pip limit
Trade Management:
Move stop to entry @ 50pips profit
Considerations:
1. Allow for Day #1's High/Low to be tested for entry.
2. If the distance between Day #1's high/low and Day#2's high/low is more than 50pips enter at the higher resistance or lower support (should meet criteria #1)
EXAMPLES OF LONG TRADES
Snippets to follow:
EUR/JPY
EXAMPLES OF SHORT TRADES
AUD/JPY
NZDJPY, EURJPY & AUDJPY. May work on other pairs.
Time Frame:
Daily Chart.
Setup
Short:
1. Today closes a bar with upper wick (at least 15% of bar)
2. Tomorrow spikes higher than yesterday's high but closes below yesterday's high. This bar must have a RED body or be followed by a bar with a red body...EXCEPT in the case of a shooting star.
3. Go short no more than 30 pips from yesterday's high and set a 50 pips stop and 100 pip limit
Long:
1. Today closes a bar with lower wick (at least 15% of bar)
2. Tomorrow dips lower than yesterday's low but closes above yesterday's low. This bar must have a BLUE body or be followed by a bar with a blue body...EXCEPT in the case of a hammer.
3. Go long no more than 30 pips from yesterday's low and set a 50 pips stop and 100 pip limit
Trade Management:
Move stop to entry @ 50pips profit
Considerations:
1. Allow for Day #1's High/Low to be tested for entry.
2. If the distance between Day #1's high/low and Day#2's high/low is more than 50pips enter at the higher resistance or lower support (should meet criteria #1)
EXAMPLES OF LONG TRADES
Snippets to follow:
EUR/JPY
Attached Image
EXAMPLES OF SHORT TRADES
AUD/JPY
Attached Image