For those of you still searching for the holy grail keep looking because there is no such thing. For the rest of you just looking for consistent wins then you may be in the right place. In this system I just so happend to stumble upon I did not create it, 4x made easy has this system as well, just a disclaimer as well you trade at your own risk.
well that out of the way lets start:
I trade gbp/jpy on vt trader because I like the volatility of the pair
two charts at the same time 4hr and 30min
- identify the trend
- check the eco. calender for any major events
- identify support and resistance
- use indicators for entry
- buy at dip bottoms (uptrend) and rally tops (down trend)
- utilze stop losses or trailing stops and use profit targets
now personally I like to use the heikin-ashi candle sticks to help smooth out the price action for visual purposes
I like to use the 3 indicators only for confirmation of the trend:
stoch (full, default) = leading indicator
macd(default) = lagging indicator
psar (default) =lagging indicator and good for reversal confirmation
I draw my trend lines from right to left to identify tops and bottoms
voila!!! thats it, pretty simple and its consistent you can back test this strategy if youd like its pretty consistent as you will see…
p.s. when in doubt stay out, if the indicators dont line up right then you got yourself a situation where the current trend is counter to underlying trend, remember the trend is your friend and [B]trust the 4hr candlestick [/B]trade with the direction of the candlestick not against it.
good luck, and I’d love some feedback on this!!!