Started studying anything and everything about these charts in 2007 and have attempted it all when it comes to systems and indicatoritis. Here is what works...
Indicators lag, toss them out and trade like a shark.
One Hour GBP/JPY is what I use. Or Daily if that suits you, or 15/30, BUT NOT THE 4 HOUR!!! Anything but...
G/Y has the most liquid market imaginable and the signals are the most pure.
Use of Stops is key or you can and will get murdered quick by the Dragon.
Put standard Heiken Ashi bars on your chart.
Set-up is two HA bars of the same color in a row. Trigger is a break of these bars. Stop is other side of set-up. Take Profit is based on your ability to draw Support/Resistance lines, Trendlines, Fibonacci lines and most importantly, the standard Pivot Points (once a move starts, S2/R2 gets hit a lot...). ALWAYS set a Take Profit based on the Pivots... you never know when the market might spike in your favor when you are not looking. An excellent trailing stop is to use the last Flat HA bar back (use the visual levels of the bars, not the actual price). By flat, I mean a bar with no shadows.
Attached chart should be sufficient as an example, back test it to persuade yourself...
Remember, we expect a loser once in a while as part of the game and many break-evens will occur. Apply the edge and get rich slow!
p.s. Don't know why this particular pivot indicator works, but IT DOES. Trust the lines!
Indicators lag, toss them out and trade like a shark.
One Hour GBP/JPY is what I use. Or Daily if that suits you, or 15/30, BUT NOT THE 4 HOUR!!! Anything but...
G/Y has the most liquid market imaginable and the signals are the most pure.
Use of Stops is key or you can and will get murdered quick by the Dragon.
Put standard Heiken Ashi bars on your chart.
Set-up is two HA bars of the same color in a row. Trigger is a break of these bars. Stop is other side of set-up. Take Profit is based on your ability to draw Support/Resistance lines, Trendlines, Fibonacci lines and most importantly, the standard Pivot Points (once a move starts, S2/R2 gets hit a lot...). ALWAYS set a Take Profit based on the Pivots... you never know when the market might spike in your favor when you are not looking. An excellent trailing stop is to use the last Flat HA bar back (use the visual levels of the bars, not the actual price). By flat, I mean a bar with no shadows.
Attached chart should be sufficient as an example, back test it to persuade yourself...
Remember, we expect a loser once in a while as part of the game and many break-evens will occur. Apply the edge and get rich slow!
p.s. Don't know why this particular pivot indicator works, but IT DOES. Trust the lines!
Attached Image (click to enlarge)
Attached File(s)
