I am proposing a trading style that I want to try out starting next week.
My trading was very successful last year, but it was a very long term strategy that gave me very few trades - since I was too busy to pay close attention to the markets on a daily basis.
This year I am devoting more time to trading forex, and I’ve been trying to figure out how I am going to trade on a more active basis.
The Trend of the Week Trading Strategy
Pairs:
Gold (not really a pair but offered by many brokers) - to start with
And Add later:
AUDUSD
EURUSD
GBPJPY
GBPUSD
USDCHF
Silver
(Not necessarily in that order)
*** I chose to start with Gold because it trends more often than most of the currency pairs,
and reacts more reliable to pattern breakouts
So the basic rules are as follows:
Indicators:
1)Support and Resistance (Barry)
***red and green dots above and below price (where fractals would be) that provide
local support and resistance fro highs and lows - aid in the confirmation of my pattern breakouts
2)Moving Average MTF
-timeframe: 10080
-MAPeriod: 1
-ma_shift: 0
-ma_method: 0
-applied_price: 1
***Gives the weekly open price as a line on any time frame
3)Volume (only used as supplement)
-watch for increase on breakout of pattern to confirm
BUYING:
-can only buy above the weekly open price
-can only buy above the most recent Support and Resistance (Barry) indicator red dot on 15M
-buys will be placed when the price breaks above resistance patterns and the candle closes
-most recent swing low contained within the reistance pattern will be used as stop-loss
SELLING:
-can only sell below the weekly open price
-can only sell below the most recent Support and Resistance (Barry) indicator green dot on 15M
-sells will be placed when the price breaks below support patterns and the candle closes
-most recent swing high contained within the support pattern will be used as stop-loss
***2 positions will be opened for each trade - position 1 closes at 1:1, position 2 closed manually
***risk will range between 1-3% per position
***for the first trade of the week - look for breakouts of support and resistance patterns formed at the end of last week
Here’s what my chart looks like:
My next post I will draw the S/R that would have constituted the breakout patterns for the beginning of this week, then as the week goes on I will plot lines for patterns that could be potential trades - but I will not make any trades til the markets open next week.