In a nutshell, I look at the weekly chart, I place support and resistance on the weekly chart, switch to the daily and plot any that stare out at me, I don’t look for them. These will be the highest probability for reversal or trend continuation. Then when I see one of those levels being hit, I will then place my stop loss above/below that candle, and put in a pending order at the level that gives enough profit. I risk the same amount on each trade, so my lot size will be double what it is when it’s 10 pips away from stop compared to 20.
That’s it really, I will split the trade, and close half when I’ve got some profit. Targets are the support and resistance lines.
Sometimes I have no idea if the market will go in my direction or not, but what I know is that if it does I aiming for over 3 to 1 profit or more.
I made 50% profit on my account this week, it’s a small amount, and I don’t claim to be a mega trader or anything, but it does prove that it’s possible to make a lot of money using the longer timeframe charts, and you can get tight stops that allow that.
Most of all it’s easy, I’m pretty sure it will work long term, I don’t see why not, the whole thing is designed to keep the most undisciplined trader like me out of those undisciplined trades.