When I behave and dont have an attack of the stupids I generally do the following:
Go find a pair, generally this is EUR/USD but it has to meet criteria.....
Its got to be in a fairly consistant pattern on the daily chart, its got to be near an end, an end (not being a psychic) is where it perviously moved, or where a pivot point, or S/R level is at the more the merrier....
There must be a clearer view of this on the hourly, if there is I'll get to work.
Goto daily and mark (or remark ) any levels that I'm close to, this could be support, resistant, or trend lines that the current price action is, or might be near before the end of the trading period (could be an hour, or a week, its how long I'm going to be looking for a trade, then how long the trade lasts togeather, not how long I'm staring at the chart alone...)
Then I'll goto the hourly chart and do the same, now heres where a decion comes into play, am I doing short term or long term? if I'm doing short term, i go down to 15 minutes, or maybe even 1 minute and look/wait for a signal after doing the same line drawing as before.
Then I'll wait for my signal to enter, which is usually just a matter of timing, if I'm right I dont have to get in it right away but I need to be sure its going to do what I think it will, this could mean a breakthrough, a bounce etc...
If im going longterm trades (like a few days to a few weeks, etc...) I'll go down to the 15 minute chart and look/wait for the best counter-trend, or more aptly the highest peek of the opposing direction that is enevitably going to find its way into the beguinning of my trade, if i think I'm there or If I've lost patience ill enter the market... this is after ive shown signs of confirmation though... just as above... being that its longterm I have time (generally an hour or so) to find a good entry spot, sometimes it works and I save myself 5-10 pips, generally it dosnt and I loose 15-20 pips -- I'm workingg on getting better though....
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Linear Mode
