2nd Base Set and Forget

Journal to track the success (or failure) of what I have called: "2nd Base Set and Forget"

Trades are taken purely on previous price action.

I look for a certain set of conditions that suggest either a buy or sell. Then set my stop loss, and target.

This method should work on any currency pair. Personally I trade USD, EUR, GBP, JPY, AUD, NZD


Below I have a couple of examples (one buy and one sell) of what I look for when setting a trade.

Preferred Time Frame: H4 (however you need to look at higher TF's to get a feel of the market)

Step 1: Look for a Base rally Base for a buy (Base drop Base for a sell)
Step 2: Look for price to break a previous swing high (or swing low if selling)
Step 3: Set a buy order at top of 2nd Base (or a sell order at bottom of 2nd base if selling)
Step 4: Set stop loss just below top of 1st Base (or just above bottom of 1st base if selling)
Step 5: Set a conservative target at first obvious resistance (or support for a sell), or a optimistic target at the first major supply area (or demand area for a sell)

And that is pretty much it. Real simple. You can look for these trades at any time. Simply set on the 2nd Base and forget.

Interesting ... Looking forward for your upcoming trades my best wishs

Thanks for your interest Gyanpapi. I will post the results either profit or loss starting next week.

yes simple

Trade #1 AUDUSD- This trade was a loss (-45 pips)

H4 Chart

Trade #2 EURAUD- This trade was a loss (-51.8 pips)

H4 Chart

Trade #3 EURGBP - Conservative Target Hit (+57.8 pips)

H4 Chart

I looked at that, but considered the base too 'wide'. Nice one!

Yes I think its ok to take a trade from the 2nd base even if its quite far from the 1st base as long as:
1) The 1st base doesn't contain multiple bases
2) There is a clear drop (or rise) from the base

Trade #2 EURAUD actually had a couple of bases. So I should not have taken that trade. In fact if I had taken the trade from the 2nd base right next to the 1st base I would be in some nice profit right now.

If I have a look at Trade #1 I had drawn a couple of bases as well. Basically I am still learning to spot the best entries.

A good example is EURNZD. If I had taken this trade I would have already taken profit of 120+ pips from the conservative target

Trade #4 GBPAUD

H4 Chart

Trade #5 NZDUSD- This trade was a loss (-39.4 pips) Note: Looking closely at this trade I can see that price has actually already touched both bases so probably should have looked a little more closely the other day before setting this trade.

H4 Chart

UPDATE on Trade #4 - Conservative target hit (+150 pips)

Holding now to next target

H4 Chart

keep coming ..... awesome pipin ... easy and simple .... love K.I.S.S(Keep it simple stupid ) stuff's

Thanks gyanpapi. Yes a profitable simple system with clear entry, exit and stop levels is what I'm after. Also I don't want to be tied to the computer all day either. So hopefully this will be a profitable system. We will see. So far I've had a few losses, but I'm hoping that over time I will get better at choosing entries.