hi,
I am currently testing a interesting strategy which has had some early success.
I want to share this idea with everyone so they can give me there opinions etc on it.
Here it is…
-As soon as daily candle closes (new York close) if the candle is bullish then you buy, but if the candle to bearish you sell. (don’t trade the Friday candle for Monday, wait for Monday candle to close)
-Now set a take profit target 20pips above/below the close price, and a stop loss below the low/above the high of the previous candle…I know the Risk/reward to worse then 1:1 but if the look back on any time pair you will notice your TP will be hit way more then you SL.
-If your TP OR SL isn’t hit before the next day open, close postion out as soon as the next daily candle closes opposite to your position, if not leave it open or set a new trade in that direction.
You will be very surprised how open the price will move in the direction of the previous day by at least 20pips. After your TP is hit, the price can do what it likes, wait till the next day and do it again. I challenge you to have a look for yourself!!!
All the best
hally2710
Hi hally2710
Which pair(s) are you trading?
Daxter
the majors usd/jpy, aud/usd, eur/usd, gbp/usd and a few crosses like eur/jpy, eur/aud etc…Only take the best “looking” candles… Currently altering this method with a bit more success, with a tighter stop.
I do use a variation of what you described =)
Nice! Relativity kindly share your variation? Perhaps an EA would be good for this strategy?
This is the altered method I am experimenting with now for those interested.
Sometime I cant always check charts every hour or even every 4 hours, so I reckon this is a good strategy using daily “momentum”. This method doesn’t worry about catch big movements in price, but just uses the last 4 hour and the daily candle to help measure “volatility” and to set your T/P and S/L at the close of each daily candle.
Here are some recent examples using EUR/JPY.
Using the last for hour candle 20.00 after it closes (the daily candle has also closed) you buy or sell based on the daily candle.
You then place a S/L below/above a previous 4 hour candle that is above/below the low of the previous candle (the 16.00 candle). We don’t trade the Friday daily candle, we wait for Mondays daily to close. Example will show what I mean.
Play around and see for yourself
Cheers
http://https://signals.binarykings.co.uk/?hash=83a93e65-017f-4955-9977-ea8505a9ca98 This software seems good, does anybody on here use auto signals to day trade Binary Options?
I consider the odds of minimal lengths of the daily candle wicks. When trying to buy low / sell high off current D1 candle, its good to place the stop outside yesterday’s D1 low/high. Thats the basic gist. It doesn’t work all the time, but its how I started working out the odds of the market movement and eventually creating my own wave analysis tool (you can visit my thread if you want, but lets not derail what hally is trying to do, which I do believe has value!).
