My available time to trade has changed and I don’t have enough time during the week to trade more. So is anybody trading daily charts at market close?
Would love to hear about your strategy.
Thanks!
There’s a simple and old EOD swing trading entry pattern for indices which works pretty well. When I say swing trading, for me indices are long-only: they have a long-term upwards bias and all downtrends on indices are transient and traps.
You need to look at your chart a little differently. Use HL bars, ignore opens and closes. A bar with a higher high and a higher low then the previous bar is a blue bar - your software might allow you to actually colour such bars. A bar with a lower high and a lower low than the prior bar is a red bar. On the Dow etc. the dominant bar type/colour is blue.
Watch for 3 consecutive red bars after a blue bar. Or they can be nearly consecutive as long as as you get a pattern of 3 progressively lower red bars. Set a buy order just above the high of the third red and a stop-loss just below its low. If the order is not triggered and a fourth red bar prints, lower your entry order and adjust your stop-loss after the next session.
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I look at the Daily each day to see whats going on and mark areas of interests.
Thanks for this tommor. I’ll give this a look.
What’s the thinking behind looking for 3 consecutive red bars? So 3 days of lower highs and lower highs. Is there a statistical significance or maybe a psychological thing going on?
What are some areas of interest you look for? S&R zones?
3 days of red bars should be enough to provoke an upswing in a market which is congenitally bullish. One red bar doesn’t mean much, it isn’t a real pull-back and price may not have fallen enough to be a real discounted entry. But right now I’m experimenting with 2 red bars as the trigger.
3 red bars gives you deep pull-backs. 2 red bars would give you more opportunities but perhaps a lower win rate. 4 red bars would be rare and maybe signifies the uptrend is stalled anyway so not the right time to get long.
The basic principles are valid but of course Its worth experimenting.
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Really appreciate the explanation and detail.
Are you going out to the weekly to get a better idea of the trend as well?
Not much. I do look at weekly charts but more as a way to gauge between the best long-term trend-following opportunities, not for entry or SL prices, not for s/r levels etc. For me trend comes from two essentials - the sequence of the 20 and 50EMA’s on the daily, plus the 50EMA slope.
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Perfect, thanks for this!
I am a Scalper that’s my profile. Last year though when I blew my account I look back at my demos I had going. I had a bunch running on the Daily/Weekly Time Frame and the Profits Blew my Mind.
I started a thread about but since its more for Trend Trading its just not my style. It’s interesting though.
https://forums.babypips.com/t/my-proof-profit-strategy/320888
tabiuslee
(US30 Scalper)
Many thanks. I’ll give this a read for sure. Daily/weekly just too slow for you?
Yes definitely ! I just trade US30 index now it moves a lot quicker and fits my trading profile. I use .01 lot size and just trade either above 200 simple MA or below simple MA on 15 chart also
use a 50MA and 20 MA cross over. There are Youtube Videos on this. I am compounding my account average 2 to 3% per day ( most days) no hurry.
this works for me I would share more about this but too many don’t believe you can compound a Forex account successfully ( I blew enough accounts I have learned compounding)
US30 is the only Pair I trade( high risk?) i use extremely low lot size and i know my Pair
Once i am in profit I can stack my trades
tabiuslee
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If your trading time has changed, don’t you think you should rather be focused on making strategies according to the one that suits you? I too have been involved in weekly market analysis and work on the entry and exit strategies and try my hands at different indicators. I’m just new to trading and have been picking out suggestions from experienced traders.
If this is targeted at me, I would say I’m doing exactly what you’re suggesting. I don’t know what I don’t know, so I’m going out to experienced traders who might know and can make suggestions.