Hi Captain. At this moment, the ducks don’t seem to be lined up anymore for EURGBP. 4HR is still above SMA, 1H is just on the SMA and seems like its falling and 5M is way below SMA now. I looked back at the chart to see what they were showing at the time you made the post. At that time, 4H was above SMA, 1H had just made a newer high and 5M candle’s wick had just broken SMA and closed below it and since then it has been in a downfall. If you did take the trade at the time of posting this, I assume you might have hit stop-loss? All right, so this was me trying to understand the chart you posted.
Now, onto what I wanted to say. First of all, I DO BELIEVE your system works. I think I am doing something wrong or maybe just having a bad streak of bad luck. I’m on demo account, practicing your system. I am following your system to the best of my ability. This is what I am doing.
For long trade-
4H - Making sure the price is above SMA. Nothing else.
1H - Making sure the price is above SMA. Nothing else.
5M - I enter trade when the price breaks previous high (or if there is no recent previous high to break) AND the price is above SMA. If both conditions are met, I enter. I put a stop-loss below the SMA (sometimes a bit lower than the previous low if my risk tolerance allows me to otherwise just below the SMA).
How I have lost trades: I enter a trade when all ducks are in line and when on 5M chart, the price has met both conditions. And just as I buy, price starts falling and keeps falling until it hits stop loss. In another scenario, I buy and price keeps climbing for a bit and then sharply reverse and keeps falling until stop loss is hit.
My record of last 3 trading days is (apparently all were long trades):
Total trades = 17
Won = 9
Loss = 6
BE = 3 (breakeven means when I was able to move stop loss up to BE price and it got hit)
I may be looking at charts wrong or something. I don’t know if it matters but I do not care about red candles when I am looking at 4H and 1H as long as the price is above SMA (because there were no such instructions in your ebook). Maybe the recent few candles should be green which confirms the uptrend is still going before I move to 5M?
I need your valuable advice on what you think I might be doing wrong. Again, I think your system works. And I believe in it. I just need some more guidance. I would greatly appreciate it if you could help me out a little.