My strategy is based on the study of the psychological levels of prices. Double and triple zero are very important, also the central level. These numbers are used by professionals. Market entry, take profit and stop loss are placed in these areas.
Examples GBPUSD are: 1.6100 (double) - 1.6050 (central) - 1.6000 (triple)
When the market is rising up I watch the price behavior in psychological levels, seeking to reverse patterns to enter the exact point where the market will fall.
So when the market is falling down I'm looking for reversal patterns in the psychological areas. They are the best places to enter the market rally.
The essence: "sell high and buy low."
I use two timeframes. One major to look for patterns (H4) and minor (M15) to enter the trade.
My indicators are:
RSI 10 applied to close.
Used to look for divergences. Also out of position when in overbought or oversold.
Exponential moving average of 200 applied to close.
Useful in daily charts to follow the trend. In the lower timeframes also very useful if the market is in trend.
Bollinger band period 20, deviation 2 applied to close.
I use it to exit the trade and see the price range. Also used to see volatility.
And most importantly, the psychological levels.
Here is the indicator for JForex
You can also use the grid with 50 pips.
Intraday trading and scalping, M1 to M15.
Medium-term trade, M15 to H4.
Long-term trade, H4 to Weekly.
Combine the timeframes to find the best setup.
-Search divergences in RSI when the price is close to a psychological level. Watching the price action and reversal patterns.
-When the price breaks the moving average of 200 and at the same time a psychological level.
-When the price is in a resistance or support while on a psychological level.
This depends on the type of trade.
For intraday stop loss is 10 to 30 pips.
To trade in medium and long term use of 50 to 100 pips.
When trade in favor of the trend I place my stop loss at the previous minimum or maximum. Also combined with an important psychological level.
For reversal trades stop loss in the previous psychological level.
A few pips before a support or resistance.
Also use the Bollinger band to place the stop.
-When the market closes on a psychological level.
-RSI overbought or oversold.
-The price touches Bollinger band.
-Divergences in RSI. Opposite signal.
No more than 2% per trade.
I use 1% per trade.
Example EUR / USD with $ 10.000 not including spread.
Stop loss: 10 pips, opening lot of $ 100,000 ($ 10 per pip).
The stop loss is $ 100 (1%).
Stop loss: 40 pips, opening lot of $ 25.000 ($ 2.50 per pip).
The stop loss is $ 100 (1%).
For intraday, trading European and New York Session.
If there is a high probability can be opened in any session.
Remember the fundamental analysis. It is important to have a better chance of success.
This strategy provides a risk / benefit ratio of 1/1 to 1/10.
You will find trades losers but the winners are very profitable.
For your success. PokerPro