The major strengh of this system is to identify the trend and utilize is at the main technical indicator. The outlying indicators are a support for entering and exiting positions.
The idea is based on manually adding vertical trend lines on the chart to identify highs and lows that coincide with the indicators. Think of these as book marks for the market. The major trend is indicated by the thickest vertical line Daily, 4H size 2, and 1H size one.
Before trading I advise zooming to the daily chart and confirming the last lower high or higher low.
This is the 4H chart of USD/JPY which performed incredible today 9/17/14.
You can also see the possible entry points on: 9/16, 9/5, 8/28, 8/15. ect…
Notice the main idea. Higher lows (green bookmarks) indicate a continuation of the uptrend.
I usually enter my trades on the 1HR chart but you can go as far as 15M. I held my position from 9/11/14 and entered a new position today at 107.100 and again on the 15M chart at 107.7.
Tips
For drawing faster vertical or horizontal lines select, “TOOLS”, “OPTIONS,” “OBJECTS” and check “show properties after creation”
To duplicate a line, double click the line, hold CTRL, and drag drop with left click.
In spite of the impending vote for Scotland v Great Britain and the GBP I have placed a new long position. The volatility has been minimal and this may be a final rally before a big sell off. Here’s for hoping it stays long.
Thanks. Hopefully it can help someone out there. I’ve been fumbling over strategies for years now. Took my first profit on the GBP/AUD at 1.837 and second at 1.845. I’m sure that the trend will continue up but it was a huge win for me (although demo) tonight.
This exact system, 1 month. I started from my existing demo account of $1,300. Took me up past break even of $1500 to $1816. +$500 on the month
The lot positions are usually modest but if I am very confident I use a lot size as large as .10. Usual lot size is .3 to .5 depending on currency pair and the strategy has mostly been for day trading.
The most profitable part of the system has been remaining with the major trend and not getting stopped out when the volatility looks like a trend change. For example I have held the USD/JPY @ 108.8 for 6 hours today and it hasn’t been profitable yet. Usually as a trader I would panic and cut my losses too early. I am predicting that the USD/JPY will rise to 111.00 according to the major trend and have remained in the trade.
I’m out of the USD/JPY for the time being. It looks like a new lower high has formed at 109.00 and there is weakness on both the 1H and 4H time frame. Cut loss at break even. Netted $166 overnight on other currency pairs: AUD/JPY, AUD/USD, and GBP/AUD. Seems like most of the action is coming out of Australia’s decline.
