The setup
Start with the 4hr chart (move up to daily and weekly to look for opportunity)
Fractals
Bollinger Bands set the MA at 50
I dislike looking at candle charts, so I use bar charts and change the bars to green and red (bull and bear)
]Not-so-new[/U]
Buy when the price is above the 50 MA, and sell when the price is below the MA. When price is on the 50 MA, price action as well as some other stuff I learned from others will work.
The fractals
Add fractals to the chart and watch where they appear. The most successful fractals that I have seen, occur at a swing depending if the price is above or below the 50 MA. It seems that when the price swings away from the 50MA and fractal appears, the fractal tells you there might be an entry opportunity.
Time Frame
I trade mainly at the 4hr, but I also look at the daily and the weekly chart. The fractals will appear on these timeframes as well, and again I look for that price either below or above the 50 MA.
I do use S/R , the closer the better on the 4hour. Also the S/R needs to give the price some room to breath.
I have no real results, just a lousy track record doing everything else under the sun. This seems to be the most consistent for me.
I follow a number of threads and groups that mainly focus on price action. Price action seems to me to be legit. I will post charts to illustrate. I do work full time and will answer questions and post charts as frequent as I can.
Thanks Baby Pips for letting me post for the first time!
Another chart from this past weeks trading.
Another strategy I use on the daily is to enter on a fib retrace on the 1 hour. The fractal appears on the daily, I mark this with a vertical line. I then scale down to the hourly chart. I mark the nearest support and resistance depending on the trend on the daily. I insert my fib and look for the 50 level. I then look for price action to guide my entry and set my stop and profit target.
I am looking at the USD/CHF to go short 1:1 or perhaps a little better. The fractal appears the price broke the 50 ma. The overall trend is down. The EUR/USD usually goes in the opposite direction. IF you look at the Eur/USD a fractal appear on the 4hr and the price is above the 50 MA. I also am looking at the CAD/JPY, maybe an opportunity at 0400 if a fractal appears. The trend is down on this one and there is some room to move to a nearby support. This is all on a demo account.
The fractal appeared on the CAD/JPY I entered on the 4hour. Looking for about 1:1 R/R nearest support.
The price target for the USD/CHF hit for a little better than 1:1 almost 1:2. I set my profit target on he nearest suport. The CAD/JPY target 1:1 was hit. I set my profit target for the nearest support. I traded a .50 lot for each
USD/CHF: $183.77 CAD/JPY: $221.90
Looking at my charts. I want to point out the trades that meet the fractal and MA criteria, but have support and resistance surrounding them giving them no breathing room to move. Take a look at the EUR/USD and USD/CHF. Both have the fractals on the 4hr both have price either above or below the MA, but there is a great deal of support to enter short on the USD/CHF and too much resistance to enter long on the EUR/USD.
The trade that I am waiting for a set-up is the GPS/USD. The price is under the 50MA price is retracing towards the 50MA. A nice price action entry such as a pin bar would be great to see. A fractal to enter would work as well.
A fractal appeared on the 16:00 bar that is my cue to enter either short or long depending on the price being above or below the 50 MA. In this case the next bar 20:00 breaks through above the 50 MA. I entered on the 00:00 open, took the nearest resistance which was the 20:00 bar high. It was a short lived about a 1:1 R/R. $134.16 profit on demo.
I decided to go long the EUR/USD based on the daily trend and the fractal that appeared. I also shorted the NZD/USD based on the fractal that appeared on the 4hr. and the lower highs of the price. I think this trade goes against my better judgement.
The NZD/USD stopped out with a loss of $63. I was not confident in the trade and only risked 2/10th of a lot. Looking back at the chart it was not an ideal setup. It went in my favor for 1 bar and then reversed and went the other way.
The Eur/usd based on the daily fractal is moving in the right direction. I risked 2/10 of a lot and have my profit target in sight which is the nearest resistance.
Looking at the NZD/USD chart again. I see tons of support and I’m looking where priced stopped and headed north. Also looking at the Eur/usd trade I will move my stop loss to just under the daily bar where I entered. I will also take a look to see where the price closes before the end of the day.
Have a nice weekend and a restful Columbus Day to those of you in the states.
Bigdog611
I am still long the EUR/USD based on a daily fractal. I scaled down to the hourly chart and found an entry that was just below the 50 MA. I highlighted the entry with a blue box. the fractal for this entry appeared 2 bars before. This is just how fractals work. I took a position of 2/10 of a lot and closed out half when I reached 1:2 R/R. I still have 1/10 of a position open. I am using a big number way up as my target. I will trail my stop as I go, right now my stop is break even. All the vertical lines you see is the way I plot my entry, stop loss, R/R. I never count pips. Hope everyone had a restful weekend. I did close out 1/10 of this position of a profit of approx $35.00. All demo of course. There was a fractal on the daily on the AUD/USD that I missed and is proving to be a winner.
Looking at the eur/cad 4hr. price is below the 50 MA going to wait for a retrace and a fractal. Plenty of room to go lower.
The eur/cad bounced tight back up no opportunity there today.
I am going long the cad/jpy based on the price being above the 50MA a fractal appears 2 bars behind the opening price. Again I dont count pips. I estimate my entry price, stop loss and price targets using vertical lines. I entered using 3/10th of a lot and when I hit my 1:1 RR I will close out 2/10 and let the other run. Only if I get to that point, the tide could turn quickly in forex.
I am also looking at the USD/JPY to go short. On the 4hr it seems as if an inside bar has formed and I would wait for a breakout, If a fractal appears then this only confirms to me that the price should be heading south.
The 3/10 of a lot to go long didn’t even make it to 1:1 RR. I was stopped out just below my entry for $75.32 loss. I’ll have to think of some ways to tweak my stop loss. Perhaps scale down to the hourly when I enter my trade on the 4hr or daily and watch for sign of consolidation. At the end of the month I will post my wins and losses. The chart below is the cad/jpy 4hr i am also including the hourly to show where things started going south. Enjoy the weekend!
