well this is a very simple method, if we stick to it we can make money.
indicators
ema 20 high
ema 20 low
RSi 10 ( level 45 & 55)
sma 10 overlayed on rsi
to overlay sma 10 , drag ma from navigator and drop on rsi, select setting as 10 , select sma, apply to, previous indicator data.
apply ema 20 twice on main chart with high and low setiings.
rules of trading.
open any chart , any TF, preferably H1n H4
when a candle close above ema 20 channel, look for the indicator if RSI is above level 55 and also above sma 10(red)
if all conditions match go long for two units. set SL at the lower channel of ema 20 under the set up candle.
Tp1 is equivalent to SL and TP 2 either trail SL under the swing or equivalent to 2*SL. whatever ur taste is.
when TP1 is hit, move the SL from 2nd trade to BE. and enjoy the fruit of trading. TP 1 will hit over 90%
for log trade rsi >55, on chart read it 55 not 45.
in the chart we have 7 trades all are winners. one of them fall short but it went more than 100 pips, u wouldn’t let it go looser after it earned u 100 pips.
Thanx nisar for explaination i was backtesting it on m5/15 will also test it with H1 and above.
I took this trade(nzdusd) using the system and RR=1:2 was very successful, another trade took on eurusd was successful as well but the one on audnzd was a failed trade.
please keep on posting your charts of lower timeframe trades if you can
I made this trade using H4 chart. its a short trade. all the condition met so shorted. lets see whats out come?
if I made a trade on shorter TF, I will post it. better do some trading on higher time frames to understand the system. if trading short time frame, always look for the trend on higher time frames.
this is also a channel trading but of different category.hoping that price will continue its bullish trend.
how did ur trade go? u may refine it a little more. trading daily chart involves big Sl. H4 H1 more better and profitable. always go with trend. i marked ur chart and added my chart as well.
Hi nisar,
you are right i used big SL for that trade setup my Target was ok but i prefer to take only 1:2 RR atleast…
H1/4 seems better i will try them on different pairs.
Do i need to take only pullback trades on every breakout setup??? what about continuation setups??
What pairs u trade with that method???
btw: where ru from bro???
when trading reversal, ignore the 1st BO unless usee a divergence on RSI indicator.continuation can be traded all the time because they are usually with the trend.I usually trade every pairs but mostly yen.
for take profit best advive is always trade ion multiple of 2 units. for example if u trade 1 standard lot normaly then take two trades of half lot each. set tp for 1/2 lot to 1:1 and 2nd 1/2 as 1:2 when first target is hit move sl for 2nd to BE. hope it will help.however u may ask any question if u need to.
entered long on usdjpy, as the trend is up and hidden divergence is there, candle stick signal is there in shape of PB.its little bit riskier because support is a bit down.risk is not big so its ok.
stopprd out cos Sl was not @ swing low.
closed the trade manually as it was hitting the resistance.
I did this trade inspired by bijoy using trend lines. it worked very well. hopefully I will keep it in my trading arsenal.
hi nisar,
hope ur doing fine… why u stopped updating this journal?
thanks likepips, soon I will be back in the forum.
I’m back after layout of 7 months. i will try to update my trading journal. here is my most recent trade. which is doing well and is risk free now. actually I used divergence , candle pattern and break out strategy. also candle broke above the channel.everything is visible on the chart.
stopped out on eurusd with 54 pips, other trade is still progressing slowly.