Daily Chart System

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

Interesting strategy. I was wondering if you made a typo at number 3 for your short and long entries. Should it be go short no more than 30 pips from yesterday's LOW, and go long no more than 30 pips from yesterday's HIGH? How far back have you backtested this strategy? Thanks!

Hi Wendavol, no, no typos there? I backtested to 2006 with positive results and am ready to put it to the live test.

Ok, sorry. Could you please show us some example trades?

You should post your chart

Working on some charts at the moment...post in a few

JusTradeFx,
In the first trade in your eurjpy example, it looks like you did not wait for a blue candle (open less than close) before placing a buy order. Am I correct? Also, do you use any trend filter? Thanks!

Correct Wendavol, it should have been at Day #4. I will continue to update/clarify tomorrow. No trend filter.

Interesting strategy, what is the reasoning for only using these three pairs?

I started doing some manual backtesting of this strategy and it looks good so far, but there are a few trade setups that looked like they could go either long or short. Can't wait to see the update! Thanks JusTradeFx!

Hi biDc,

These are the pairs I did my testing on. I am fiddling with a few more. Stops and Limit may vary on other pairs though.

Yes Wendavol, you wont be able to escape that occasional scenario and sometimes you will have opposite setups running back to back. Just getting a chance to update post #1.

Have my eyes on this pending setup on the AUD/JPY Daily.

In your audjpy pending setup, could the candle before the one marked "Day 1 High" have been considered a day 1 high? It looks like it would have been stopped out if played that way. Thanks.

Yes it would have, so we always wait to see how the level is tested. Also remember we cant win all.

NZD/JPY H4 TRADE

Also taking a look at the H4 Chart. Took this trade and its paying off well.

Tp reached +101pips

EUR/JPY Daily Setting up

NZD/USD Daily Set up

NZD/JPY Daily Setting up