Beginner Help/Strategy

Trading Discussion
1

Hi all!

I’ve always been very interested in trading but am of yet to develop a winning strategy. I think (from my back tests) that I have found one with potential so thought i’d ask the trading wizards of babypips for their opinions/guidance.

For some context I am trading on the 1m screen and will usually open up my computer just before 8am GMT to draw out resistance levels.

Below I will write the strategy:

  1. Identify and Mark out Asia High and Low (I trade London Session - so to my understanding these are the areas with all the liquidity?)

2.Wait for a move to grab the liquidity and reject it (or if asia high was established just before london session e.g: 10-15 min before london starts)

3.Wait for the move which grabbed liquidity to close below the start of said move (move which grabbed liquidity)

4.Draw fibonacci from top of the move to the bottom (swing high to swing low/swing low to swing high)

5.Set an order in the “golden zone” (79%-81%) and target the bottom of the move.

Here is an example of NZD/JPY from today (13/02/24):

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Example from GBPJPY (08/02/24) where strategy did not work:

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Can anyone offer any guidance as to how i could perhaps hone this strategy and/or find some way to add confluence to it?

Any help is greatly appreciated,
Thank you very much!

2

Furthermore, an addition of the strategy could be if liquidity is grabbed but not rejected (powers thru asia high/low to establish new high/low - as it does it the example above) then we wait for a move to close below the move which created the new high/low. For example this is the continuation of the GBPJPY chart above:

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3

Very solid strategy I used something similar on major pairs, however not every is good for that purpose but the ability to discern between good and bad moves comes with experience and trained eye.

4

Any tips for identifying the bad moves?

5

Also do you reckon I should stick to the major pairs for a strategy like this? And if so how come? Something to do with more volume?