Hi all,
I believe this day-trade method is very simple and effective. I decide my bias for the day basically using patterns analysis on the Daily chart (also, the Weekly and Monthly charts – if applicable) and price-break of most recent swing high or low on the 4 Hour chart.
I seek trade set-ups on the hourly chart using overlapping Fibonacci levels supported by previous highs/lows and pivot points. My Stop Loss placement is easily determined based on the hourly most recent swing high/low, and I enter trades using Limit Orders.
The 15min and 5min charts are only used to have a clearer view of the Hourly chart price action.
I use this method personally on my live account, and it is inspired by a respected and successful veteran trader. It is virtually a fully mechanical method – except for the simple analyses on the Daily chart and above.
It’s not a get-rich-quick method, neither is it the HOLY GRAIL; and it involves a high level of patience as it doesn’t produce tradable set-ups every day. However, I study the four majors and I usually get an average of about five trading opportunities in a week – depending on the market environment.
As much as I can, I’ll post at least a trade bias, and, if available, trade set-ups on any of the four majors everyday as I carry on my personal trades; I believe we’ll all find this method very rewarding as we familiarize ourselves with it.
Tunji.