I would like to try out a day trading strategy which will be based on the previous days’ price action. All I’ll be looking at is the most probable price direction, based on the previous days’ price action.
Some criteria I will be using will be:
-S/R levels.
-Strong daily candle that would warrant a reversal (eg. Five 4H bear candles in a row = Bullish price action the next day).
-Price at top or bottom of channel.
-Multiple pairs containing the same currency showing the same signals (correlation).
Analysis would be done around the EOD and I will only be choosing one or two of strongest signals to trade.
Trades will be closed before EOD.
SL above or below previous days’ candle.
Here are some examples of what would trigger a trade:
DOW Short - Strong bull candle, possibly creating the top of a channel
Plus 5 consecutive bull candles on the 4H chart:
EURUSD Short - Price bounced off R level. Price trending down:
Note: This could possibly be a correlated trade with the DOW, so that needs to be a factor in my decision.
AUDJPY Short - Strong move on Friday. At R level:
4H - Five consecutive bull candles:
Note, other JPY pairs are giving bullish signals, so that will be factored into my decision.
EURAUD Long - Strong down candle broke through the R level.
4H - 5 consecutive bear candles followed by 1 bull:
EUDCAD 4H - very similar to EURAUD:
EURCHF Short - Strong bullish week bounced off top of channel:
This one might retest the top of the channel so I’ll likely stay out.
AUDNZD Short - Strong move will likely retest channel:
4h - Plus 5 consecutive bull candles:
NZDCAD Long - Very strong bearish move every day last week. Bottom of channel:
NDCHF Long - Not such a strong signal, but has recently bounced off S level, plus correlation with NZDCAD:
There’s was an obvious surge in price Friday on most pairs, so there would be no point in opening a bunch of these trades as chances are they’ll mostly all go the same direction.
Happy trading and have a great week!
