I’ve always been very interested in trading but am of yet to develop a winning strategy. I think (from my back tests) that I have found one with potential so thought i’d ask the trading wizards of babypips for their opinions/guidance.
For some context I am trading on the 1m screen and will usually open up my computer just before 8am GMT to draw out resistance levels.
Below I will write the strategy:
- Identify and Mark out Asia High and Low (I trade London Session - so to my understanding these are the areas with all the liquidity?)
2.Wait for a move to grab the liquidity and reject it (or if asia high was established just before london session e.g: 10-15 min before london starts)
3.Wait for the move which grabbed liquidity to close below the start of said move (move which grabbed liquidity)
4.Draw fibonacci from top of the move to the bottom (swing high to swing low/swing low to swing high)
5.Set an order in the “golden zone” (79%-81%) and target the bottom of the move.
Here is an example of NZD/JPY from today (13/02/24):
Example from GBPJPY (08/02/24) where strategy did not work:
Can anyone offer any guidance as to how i could perhaps hone this strategy and/or find some way to add confluence to it?
Any help is greatly appreciated,
Thank you very much!