BASIC CONCEPT PAGES 1-5
MORE SOLID APPLICATION PAGES 6 ONWARDS
Hi there,
I have been trading this simple strategy which I find very effective.
I trade it mainly on 1 hour charts. Its effective on higher time frames but of course the risk increases as you go higher. May do some higher time frame examples here.
SCALPING GRAB & GO RISK:REWARD for the 1 hour is 2:1 OR 1:1 OR 1:1.5.
SHORT when there are TWO CONSECUTIVE BEARISH BARS and the SECOND closes WITH a LOWER CLOSE PRICE
LONG when there are TWO CONSECUTIVE BULLISH BARS and the SECOND closes WITH a HIGHER CLOSE PRICE
The WIN PROBABILITY is HIGHER when the CLOSE PRICES are NOT FAR APART.
Notes:
MORE SOLID APPLICATION PAGES 6 ONWARDS
Hi there,
I have been trading this simple strategy which I find very effective.
I trade it mainly on 1 hour charts. Its effective on higher time frames but of course the risk increases as you go higher. May do some higher time frame examples here.
SCALPING GRAB & GO RISK:REWARD for the 1 hour is 2:1 OR 1:1 OR 1:1.5.
SHORT when there are TWO CONSECUTIVE BEARISH BARS and the SECOND closes WITH a LOWER CLOSE PRICE
LONG when there are TWO CONSECUTIVE BULLISH BARS and the SECOND closes WITH a HIGHER CLOSE PRICE
The WIN PROBABILITY is HIGHER when the CLOSE PRICES are NOT FAR APART.
Notes:
- It is best to wait for a little pullback if close prices are not very close.
- Try to enter as close as possible to the close price of the first bar.
- If holding for more than 5 pips, this is best done when H4 or daily show SAME DIRECTION OR if the setup is the first following a REVERSAL.
Please also read THE FOLLOWING POST
TYPICAL CALCULATION OF RISK:REWARD
Stop = Hard stop determined by trader OR 5 pips from the high or low of the first bar.
Reward = Fixed take profit determined by trader OR (for short) -> 2 X Distance between first bar's close and high, (for long) 2 X Distance between first bar's close and low.
EXAMPLE:
Attached Image (click to enlarge)
Hero Traders Live to see their Accounts Die!
