Yeah, volume indicators coinciding with strong candle may also be useful. However I tend not to trust indicators in general since they can give false signals at time. Price Action using Candlestick signals are more accurate but since they can also give false signals, the fewer false signals one uses, the better. lol
My blog at drfxtrading.blogspot.com describes the manual in detail, but essentially I have put together all the rules and parameters needed to trade the Daily & 4 Hour Charts after using 10 years of data and the last 3 years of actual trading results. This followed years of trading both the smaller and larger time frames at the same time but after losing money with the latest day trading method, finally took decision to stick to larger charts. It was only when I used the larger times frames that I actually made money, but was too impatient to stick to it given the temptation of the shorter time frames and so did not devote enough time to establishing the rules. Now that I have done so, no turning back.
I have rules in place to determine market direction, entry and stop losses as well as the type of targets to aim for depending on the setup. I have narrowed down the best Candlestick signals that give the highest probability of success and have also detailed how/why the market does what it does- from trending to consolidation and back.
100 - 200 Pips tends to be the average range of movement you can get when the best Candlestick signals are given. Aiming for less tends to narrow your Risk-Reward Cushion which is already tight given the stops needed on the higher charts. I also found that if a signal offers less than this, it will be very volatile. 200 is the maximum because it sits comfortably within the movements of the trend which tends to be 250- 300 Pips when it gets going.
Smaller time frame trading is an unbelievably difficult thing to master. Im not really going talk about conspiracy theory as to why persons are led to that time frame more than any other. Nor will I ever say that no one can be profitable long term trading this way. All I will say is that the suffering, stress, losses and headaches are a lot less and the time to get a profitable rhythm going is a lot shorter when all that effort is devoted to the Daily & 4H Charts.
Starting with this trade result on the AUD USD, I will continue to show how simpler it is to trade with my approach. Unfortunately this first one that I have traded since taking a break to complete the manual was a loss…lol…but for losses and gains, one will see a better thought process that allows a trader to be in sync with the market and accurately exploit it for personal gain-finally.