Riding The Trend after Retracement

This set up help me to trade in the direction of the long term trend and shows me in which direction the big boys (BANKS) are trading.I want to be trading with them rather going against them.

SET UP FOR A SELL TRADE--------

  1. Open the Daily chart, plot 200 days simple moving average of close on this chart.If the price is below the 200 SMA and the SMA is pointing down (IMPORTANT), first criteria for sell trade is met and now I am looking for selling opportunity in this pair.

2)For My entry signals Now I open the 4 hour chart of this pair and plot ZigZag indicator with settings 3,5,3 and sett the line little thick so that the swings are clearly visible.And Now I wait for the price to retrace and start making higher highs and higher lows.This I call theretracement waves on the 4 hour chart.

  1. As I know this tretracement is done once the price forms consecutive lower lows and sarts heading again in the direction of the long term trend.that is in the direction of 200 SMA on the Daily chart.

  2. Now I place the sell stop order for three separate lots 2pips+spread below the second lower low on 4 hour chart.

STOP LOSS AND PROFIT TARGETS.

For all three lots I place the stop loss of 100pips( It can be adjusted by few pips if the recent high is near and I put my stop 20 pips above that high).On first lot the take profit is 200 pips,on second lot it is 400 pips and on final lot the take profit is 600 pips.( Take profit targets can be adjusted by few pips if a support / resistance levels on Daily chart is near).

MANAGING THE TRADE------
Once I am in the trade I never never never temper with it.Yes I move my stop to break even when my second target is hit

IMPORTANT—

1-- Steeper is the slope of 200SMA Higher is the chance of trade being profitable.
2–Only use Sell stop orders
3–After the retracement is over Place sell stop below the second consecutive lower low only and never try to enter the trade early.
4-- Reverse the action parameters for long trade.
5–See sell set up and buy setup trade examples in the attached charts.

Interesting strategy. Do you live trade with this?

In this strategy in my demo trades what I found was both risk reward ratio and the win loss ratio are very attractive.First gain confidence by paper trading and send me the results.Once your eyes get used to identify trading opportunities on the charts based on RIDING THE TREND AFTER RETRACEMENT You will make millions.Happy Trading

How come you don’t live trade this and “make millions” yourself?

I will never live trade this strategy until I have sufficient fund in my account.To take 1% risk, this trade set up requires more funds than what I have in my account now.I have just purchased a new home and will take me some time to fund my account sufficiently.You try this strategy in demo account and see your account after 20 trades or so.You will love it.Happy Trading.

Loonie is in long term down trend as price action is below 200 SMA on daily chart.The price has retraced from 9445 to 9850. I am looking forward to Zig Zag to carve consecutiv lows on 4h chart.The ccnsecutive lows has already been formed two times but my sell stop order was not filled both time. Let us see what happens third time.


USDCAD sell stop filled in today at 9703 ( 2pips+spread below the second consecutive low on 4H chart). My stop for all three lots is at 9825 approx 120 pips.Take profit for first lot is 9523 as there is a minor support at 9512.Happy trading.

Unfortunately I am stopped out on loonie.

Interesting. I’m gonna try it out!

Interesting. I would probably have a modification of your TP strategy. Are you planning on creating an EA? I can probably make every one of your entries with a 10 pip SL + spread. Thus 10 X the return if I understand correctly that you use a 100 pip SL. If you give me a few entry points I’ll check and see.

If I understand correctly, currently there is a possible short setup on eurusd?

4hr chart 21:45 CET 23-06-2014

I’ll keep an eye out on that one