Hello fellow pippers,
I’ve been trading in the forex markets whether on Demo or Live accounts for the past 4 years now. Each year I seem to come up with a Price Action new trading system to follow, but for some reason I lose focus along the way (caught up in that trump china trade war etc.)
Now I’m telling, no, FORCING myself to stick to one system. I think the best way for me to do that is to prove it to an audience (if I even build one)
So here is my trading system! I’ll try to post my trades here but mostly theyll be found on my blog
Blog: tradingwithtimmy on WordPress
Babypips wont let me post more than 1 image so if you want to see the full trading system in detail please visit my blog 
Timmy’s 50% Fibonacci System
Confluence is key in this system. A combination of Top-down trend analysis, price swings, fibonacci retracement, and a candlestick pattern or 20MA touch is all required for a valid entry. These parameters must be met on the 1HR chart in order to consider a trade. Lets take a look at the indicators in detail.
Top-Down Analysis
Start from the weekly and draw trendlines or boxes to identify support and resistance levels, or supply and demand zones. Use these zones to identify a trend. All lines and zones must have at least 2 or more touches to be eligible. Repeat in Daily, 4HR and 1HR charts.
Trades are only taken when in a reversal, or a continuation pattern. Do not trade consolidation.
Indication Patterns
These patterns will indicate where price will move to next during our TD analysis. Probability of outcome for these patterns are very high in the markets we know today. Using these in confluence with our indicators will promise very high win ratios.
⁃ Ascending/Descending Triangles
⁃ Double top/bottom
⁃ Head and shoulders
⁃ Last kiss
Price Swings
Look for these swings. If entering a reversal, there must be at least 2 swings in said direction before considering a trade. When looking for a continuation, do not enter when coming 1 swing away from a zone. Wait for either the rejection or breakout.
Fibonacci Retracement
Once the first 2 parameters have been met, time to draw our fibonacci retracement. In the 1HR chart start from the bottom or top of the previous swing’s candle wick. End at other end. Always draw from wick to wick.
Entry should always be from the 50% zone. Stop loss should maximize from at least 200 pips to the 78.6% zone.
Candlestick Pattern & 20MA
The final indicator for our trade is confluence of both a candlestick pattern and the 20MA bounce. Look for these in the 1HR timeframe. Also use follow up confirmation candles.
Candlesticks include but are not limited to:
⁃ Engulfing Bar:
⁃ Pin Bar:
⁃ Harami/Evening or Morning Star:
Either of these must bounce off the 20MA to be valid for entry
Now that we’ve taken a look at our rules and indicators, lets take a look at entry, stop loss and risk management.
Entry:
- Top Down analysis proves trend or reversal (not consolidating) thru indication pattern
- Minimum 2 swings in direction we want to trade
- 50% retrace with candlestick, confirmation and 20MA bounce
- Minimum 4:1 trade
Stop Loss:
- Minimum 200 pips
- Maximum 78.6% retrace
Take Profit:
- Minimum 4:1 trade
- Just beyond fib 100/0 levels or at consolidation
Risk:
- 1%
TLDR This is a trading system combining Price Action Swings/Fibonacci retracement/Candlebar Indicators for entry.