Hi,
Now you maybe just getting to grips with my EUR/USD price action method on my other thread, but I thought I would also share my DOW PA method with you also.
Most of my trading methods are price action, but I’ am also a fan of divergence and do trade this also.
[B]A little bit more about me:[/B]
I traded for a private investment bank in South Africa during the late 90’s mostly dealing in SA stock and not FX. It wasn’t until 2001 until I headed home to Scotland where I still live today.
Now I trade from home with my own funds as well as trade a syndicate fund for a small group of investors/friends.
I have also had 2 top selling amazon training courses which sold over 15,000 copies combined and were at #1 in the financial books section on amazon for 3 months during 2008. [B](but these are no longer for sale)[/B] I also ran my own trading forum for 2 years and had over 3,000 members, but it became to much work and hassle to run so I closed it down early last year.
During the day I monitor a host of markets, ranging from Indices to shares, forex and commodities, my trading set up includes 12 monitors and 2 50" plasma screens which has become second nature to me to monitor now.
[B]Now on to the MrSpreadBetting Dow price action method:[/B]
I use this on the DOW daily cash contract offered at IG Index.
We trade the 16:15-16:30 15 minute candle.
If the candle is red at close we look to BUY if price drops more than 10 points from the candle open then comes back up to hit the 10 points distance, we use a 23 points stop and 23 points target.
If the candle is blue at close then we look to SHORT if price moves up more than 10 points from the CLOSE and then comes back down to the 10 points distance.
[B]NOTE: Red candle we take it from the open
Blue candle we take it from the close[/B]
For example, lets say the DOW 16:15-30 candle closes red and the open of that candle was 500, we would need price to drop more than 10 points to at least 489 or less then come back up to hit 490(10 points from the open of the 16:15-30 candle) if this happens we would enter LONG at 490 with our stop at 467 and a target set at 513. We close 50% of the postion if price hits 11.5 points profit and leave the stop where it is, creating a free trade.
Now if the 16:15/30 candle was Blue then we look for shorts.
Lets assume that the close of the blue candle was 500, we would need price to move up to at least 511 or more then come back to 510. We would then enter SHORT with our stop at 533 and target at 487. We would close 50% of the trade when price is in profit by 11.5 points.
Always factor in spread.
If trade has not triggered by 19:15 UK time then do not trade.
[B]You can modify this method if you wish or use it in combination with another method. The rules are not set in stone it can be changed or discretion can be used to improve results and performance![/B]
[B]Chart examples:[/B]
Blue lines is 16:15-16:30 candle open
Green lines are entry, 10 pips from open
Red lines are stop loss 23 ppoints from entry
Purple/pink line is target
10th Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921479808061&print=1
9th Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921482694699&print=1
8th Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921483983178&print=1
7th Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921486551740&print=1 [B](Came very close to being stopped)[/B]
6th Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921488055908&print=1
3rd Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921489050650&print=1
2nd Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921506566065&print=1
1st Dec http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921502619626&print=1 [B] (Didn’t Trigger)[/B]
30th Nov http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921510095171&print=1 [B](Breakeven, first pink line 11.5 points hit)[/B]
29th Nov http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921511585949&print=1 [B](Losing Trade)[/B]
26th http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921512915506&print=1 [B](Breakeven, 11.5 points hit)[/B]
25th [B]Didn’t Trigger
[/B]
24th[B] NO TRADES 16:15 doji
[/B]
23rd http://t8.md.it-finance.com/MDV8/showimage.phtml?id=12921519754978&print=1
22nd Nov Didn’t Trigger
Above is an example of 15 trades.
8 Wins = 184 points
1 Loss = -23 points
6 no triggers OR breakevens
Net profit over 15 trading days = 161 points.
