This simple daily strategy trades the major currency pairs and selected crosses. It is based on the popular TD_Lines Indicator by Thomas DeMark, with a momentum oscillator to confirm signals and multi-timeframe confluence over M15, M30, H1 and H4 periods.
Each trade comprises two orders:
Order # 1 : Entry Stop Loss = 40-50 pips Trailing Stop Loss = 40-50 pips Take Profit = 100 pips
Order # 2 : Entry Stop Loss = 40-50 pips Trailing Stop Loss = 40-50 pips No Take Profit
The first order seeks to take advantage of a sudden price rally on a TD_Line breakout, putting some cash into the account, and eliminating risk on the second order. The second order is allowed to run to its maximum potential, with the Trailing Stop Loss protecting open profits.
I will post here whenever a signal is confirmed. Here’s a current open position in the USDJPY:
The momentum indicator confirms a TD_Line breakout. If above -30 on a buy signal, or below -70 on a sell signal, the signal is confirmed. These are not overbought-oversold zones, but areas where buying or selling momentum trigger action if at an extreme level when a TD_Line breakout occurs. Notice in the daily chart how momentum enters an extreme zone at key price turning points.
And here’s the monthly. There is plenty of potential for Order # 2 to run wild, especially if it breaks below the green TD Supply Line. We’ll just have to wait and see.
