I trade only using Daily and 4H time frames and mostly during NY session. Got a full time job. Cannot watch 1H, 15m charts.
So won’t be seeing a lot of trades for a month. Last month I only had 15 trades (I watch 14 charts :).
Since I trade using D and 4H, I can afford to look at so many charts. Some of you might not agree with me (especially for a new trader). Otherwise, it is really difficult to get trades, if I am looking only at 2 or 3 4h, D charts.
I go as low as 1H to find a better entry position, if the SL is too high. I don’t use 1H to look for trends.
Setup :
Go to D1 chart and mark SR levels (clear lines on my screens)
Do the same in 4H chart (dotted lines on my screens)
I am not a good teacher in teaching how to draw the SR lines. There are many articles and youtube videos that teach drawing SR lines.
Indicators:
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I do use FIBO (mostly if I don’t see a good SL / TP area). I find FIBO is a good indicator (my personal opinion)
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Candles and SR lines (I personally believe these also to be indicators). The moment you draw a line, that becomes an indicator.
SL:
I don’t risk more than 130 pips on a trade. This is something that I am comfortable with risking. Even if I see a very good trade setup and if the SL is over 130, I don’t trade.
Might go to 1H to look for a better entry.
TP:
1, 2 or 3 or more times than SL
Method :
Most of the times, I try to stay with the D1 trend.
Wait for a PA signal candle near SR level and trade (that’s it for my method)
Note : Most of my trades are pending. I do get a chance to enter few market orders too.
PA candles:
Pin bar, Inside bar - IB (Second candle forms inside the first candle) and Engulfing - Eng (Second candle is more that the first or reverse of inside bar - RIB)
There might be other PA candles that are better than this. But during my testing in the last 3 months, I noticed that these give me better winning percentage.
Following are few samples :
Lot size:
Following is how I calculate the lot size. I didn’t come up with this. Got it from another successful trader. If anyone knows a better formula, please share.
X : 1 standard lot is $10
A : Risk amount based on % risk per trade
B : No os pips for stop loss
C : lot size = A/B/X
Ex: If the account balance is 500
A = 5%,
500 * 0.05 = 25
B = 50
C = 25 / 50 / 10 = 0.05