Hi to all, i want to show my personal strategy on forex based on the swing trading. I use only 1day and 4h chart, no indicators only support and resistance on 1 day chart and the ABC method on 4h chart.
First i explain the view of the market in downtrend or uptrend. For example (see the picture below) in 1 day chart a downtrend is done by low highs and low lows and instead an uptrend is done by high highs and high lows.
in the same way, if we go down in the 4h chart we see the same conduct of the price (left side of the image).
In the ABC pattern i write an A in the first high highs, then i wait for the movement of the price (down in this example) and i put a B on the chart. This is the moment for a retracement (usually between the 23.60 and the 61.80 of fibo’s retracement). the high point of retracement is the C on the chart. When the C is plotted on the chart i find my motherbar (i explain later this concept) for the entry.
The first target to close the position is the B. The R/R is often between 1/1.5 1/2.
Now i put some image of real chart to understand better the ABC pattern and realtime setup with entry tp and sl.
Thanks to all
Fabio
