How to use this System
The system is based on the principle that price bounces of moving averages. On this chart we have two moving averages
60 LWMA solid line and the 20 EMA dotted line (In the past I have used my custom indicator for Arrows which are just higher trend moving averages, however using them one misses many pullback entries)
Entries are based on the following setups, this is the 1M Chart
- 20 EMA is above 60 LWMA
- Price bounces on 20 EMA and goes up
- Candle opens above 20 EMA
- Open Buy Trade
- 20 EMA is bellow 60 LWMA
- Price bounces of 20 EMA and goes down
- Candle open bellow 20 EMA
- Open Sell Trade
The take profit shown here are based on price hitting a support or resistance zone
The Stop is when the opposite trade is valid
My Buy and Sell scripts always place a 20 pips SL and 50 Pip TP immediately when trade is opened just in case of political news spikes on GBPUSD, I adjust them soon after opening based on support and resistance.
In this there are two trades that do not work as the price is hitting a strong resistance but then the sell trade recovers some of that loss.
This chart is only for 3 hours of the day after the USA Open, makes 83.5 pips.