I’ve had luck so far with the following strategy that I spent a lot of time working to master:
Stochastic backed up with either MACD, or ADX (for longer time frames trending) or Ichimoku for JPY pairs. I only jump with all the stars are aligned (all time frames from 5m to 4 hr move the same direction). Needless to say, this is a rare occurence, so I have been known to limit the frames to 5m-1hr.
I’m always wanting to learn more. Any seasoned veterans have a combo or strategy suggestion? I’m not a numbers guy…some of the strategies that require pivot points, MOMO’s etc don’t work for me.
I would suggest not casting the pivot points or fibs onto the scrapheap too quickly. Even if it is only plotting a few lines from the daily pivots onto your charts to see how the market interacts with them. (No need to calculate them yourself, try Action Forex pivot points) Daily. Don’t get bogged down too much by smaller tf pivots.
Also fibs on the longer tfs can be quite interesting too, viewed on the lower tfs.
Of course the other way is just to draw points of reaction & interest on the higher tfs & watch for future interaction on the lower tfs ie support & resistance a la Tess’ thread “Technical templates.”
Just posted the mage below as an example of fib reactions, the shot is of the daily G/U with fib drawn from the major last swing low @ 1.4237 up to the start of the retrace on Monday. Take a close look at the 23.6% level yesterday. Also put the fib on your chart & run it up from the start of this uptrend, except for the very start down at 1.4770 it has retraced to the 23.6% line.
Hello marionette.
While you search for a good strategy, keep a trading journal and record all of your trades. That way you will improve your trading to levels that you cant imagine. If you dont have a trading plan that includes a journal, then you will fail, because you wont be able to learn from your mistakes.
Hello marinette
You should record for every trade this:
entry time
day
pair
long or short
entry price
stop loss
strategy
daily, 4H, 1H, 15 min chart at the entry and at the exit.
pips won
pips lost
That way you can review on the weekends and improve.
You need to calculate two ratios at the end of every week
win/loss: total win trades/ total trade
risk/reward: pips lost/pips won
Every week try to maximize the win/loss ratio and try to reduce the risk/reward. If the win/loss rato is to small the you need to start selecting better entries, have a better timing. If your risk/reward is to high then you need to let your profits run. But you need to calculate these ratios to see where you need to improve, get it?