[B]Taking a very simple approach to trading the FX Market:
Entries for Long
[ol]
[li]I will buy daily and h4 bullish bars (close price higher than open) if the current price is holding above the close price.
[/li][li]I will buy daily and h4 bearish bars (close price lower than open) if the current price is holding above the close price.
[/li][/ol]
Entries for Short
[LIST=2]
[li]I will sell daily and h4 bullish bars (close price higher than open) if the current price is holding below the close price.
[/li][li]I will sell daily and h4 bearish bars (close price lower than open) if the current price is below the close price.
[/li][/LIST]
Holding Price
means at least one bar has closed above / below AND at least one bar has tested the price.
Where to enter?
If holding checks positively, we set an order or open an order at or as close as possible to the holding price.
Exit
I will take profit at the next swing high or low or where a reverse trade setup appears. If there is no swing high/low in sight, I will take profit at the next round number. For example, if my entry is at 140.00, I will take profit at 141.25. If my entry is at 141.00, I will take profit at 142.50 and so on.
hi, fxharmoix:
really interested in this strategy, thx for sharing.
But can you explain something to me:
What do you mean ‘current price holding above/below the close price’? How many candles are you taking into consideration?
You only explained tp and sl. What about entries? I mean where and how do you enter a trade? Do you use pending orders?
Would really appreciate if you can explain with charts. THX.
Shuo
Recapping this eurjpy long trade setup from market open we identify two support areas at market open after the gap up, the close price of the bullish bar (green horizontal line) and the close price of the bearish bar (yellow horizontal line). These bars have been starred in the chart attached.
The levels were tested by the next three bars, then gave an entry on the fourth bar.
hi, fxharmonix:
so this is my understanding of your system. correct me if needed:
system is for daily and h4;
for long, at least one bar closes above the close of previous bar (first bar) and at least one bar tests the close price of the first bar and close back above; vice versa for short?
entry, sl & tp as explained in your 1st post?