First a bit of background.
Have been trading since 2004 - moved to Forex in 2004-2005 after weaning off equities. I began to learn this skill because I knew that one day I would need to leave working and would still require a cash flow.
Trading has been as much hobby as it has been a dream, and occasionally it has provided some small returns.
Naturally when that happens, you feel greatly encouraged and get the feeling that you are very close to the dream part. But trading has a way of humbling a trader, and it doesn’t take long before the mood of the market reverses, and so do your trading fortunes.
My mate calls me a fox terrier!
Once the pup is onto a rat, he won’t give up until he nails that rodent!
And that describes me exactly, since once I am onto something good, I won’t give up until I taste success.
Well - if you buy the ticket - you have to see the show, right?
Enough rambling - what’s this about?
Recently I have searched the Internet for Position Trading systems and Swing Trading Systems and similar, because I have an idea. I also read the following threads on this forum:
I went over a couple of threads I wrote on the topic on other forums:
Trade2Win: Getting a Life … Position Trading the higher Time Frame
Traders Laboratory: Optiontimer’s Project: Using Trend, Momentum, & Timing with Strategy (member)
Incredible Charts: Forex Made Easy - Ingots Rainbow Strategy.
Incredible Charts: Ingot’s Rainbow Forex Method
If you Googled a couple of those, you will see that for a long time I have recognised that one of the keys to successful trading is definitely hidden in the Daily and 4H Time Frames.
So why did I not follow my own theories, and get lost amongst the weeds [to use a phrase I think coined by @Clint - FX-Men Honorary Member in another thread]?
I think the answer to that is the missing link most of us lack - inability to recognise beginning and end of trending behaviour, and beginning and end of whipsaw or ranging/consolidation behaviour in Forex pairs.
Most know that if you keep attempting to trade a Trend-following strategy in a whipsaw market, you will soon lose a lot of capital.
This thread is yet another attempt to come up with a strategy to trade the higher Time Frames (TF) while using suitable tools to help identify these subtle changes in direction before they do real harm to our trading accounts … and more importantly - our trading confidence.
I have used material from, and give credit to the above linked threads and their creators, simply because there are only so many variations in the way to create a wheel. The difference I hope to make - and ultimately hope to prove - is that by using suitable tools to identify when to be in/out of the market, and when to Take Profit (TP).
So in the posts that follow, I will lay out the tools I’d like to use, the chart set-ups and other sundry indicators which I think have a role in keeping trades efficient.
Part of the philosophy I subscribe to is the “Kenny Rogers” approach - know when to hold and when to fold!
The rest of the story will have to do with trade entry/exit and trade management.
So I invite participation from traders who have an interest in the higher TF.
I have pretty much laid out how I want this thread to develop, and I request that contributors stick closely to the spirit and intent of the thread. I’m easy-going and can cut some slack if people digress a little, but only if their point has something to do with progressing the philosophy expressed.
If you don’t feel you can do that, then just hang around and read … or start another thread using your idea there.
It’s the weekend, so markets are closed.
Give me a few days to get this thing assembled