Trading Bounces Off Former Swings

Hello,
i would like to share my current trading system. It's simple, effective and surely nothing new to most of you.
I simply identify a recent swings or s/r level and wait for the price to pull back to that level where my entry is. The idea behind is that the price will 90% of the time react at this level, sometime only 7 pips, that's when you set your SL to BE.

Some rules
- price has to be at least 12 pips past the former s/r level and for at least 3 periods
- if price pulls back and bounces back before reaching the level, cancel your order

Attached is a pic of a long trade i took yesterday (USDJPY).

What do you think, is this profitable in the long run?

Please elucidate with more charts. Thank you.

Subscribed. What timeframe do you use?

Are you using limit orders to enter your trades?

How are you managing the trade beside moving SL to breakeven? When do you exit?

Thanks

After some time away from Forex I am back and this is exactly how I have decided to trade. I think with the right discipline it can be successful long term but I have not traded it long enough to verify it. It is great to come across someone who is doing the same, it gives me hope that I am on the right track.

Without imposing too much on your privacy do you mind sharing how long you have traded this method or what sort of win rate and percentage you have managed to grow your account?

I look forward to following this thread and contributing where I can.

thx for the interest.

ive been trading with this method for a couple of month, win rate is very good, in theory but you have to be disciplined , which i am still working on

basically, you can use any timeframe, i usually use M15.

here is another example:
1... last swing
Y... price breaks trough that level (at least 12 pips)
2... price pulls back to that level
E... entry (as soon as price reaches that level)
T/P... Y minus 1-2 pips
S/L.. 50% of T/P

what do you mean "... and for at least 3 periods"? and "
- if price pulls back and bounces back before reaching the level, cancel your order"?

Based on my understanding, 3 periods is referring to 3 candles regardless of the timeframe you are trading. So if you are looking at the 1h chart then you will want at least 3 1 hour candles before price pulls back to the level. Basically you are just confirming that the level has actually been broken so that the re test of that level is valid.

For example if price broke the level in one candle, and retraced back to that level in the very next candle, you would not take the trade.

To put it a different way just make sure it has formed a triangle shape with a gap in the middle of the triangle

EUR/USD 1H

Price has broken through a recent high and low. This is only a potential trade at the moment we have to wait to see what price does, but this might be the beginning of a reversal and I don't even like reversals.