Hey folks,
greatings from Germany.
First of all, I am not sure if this "strategy" has been posted before, because all I learned was from this board.
But something striked my. Now I rely on this strategy and try (next to my Indicator strategy) so "indicate" intraday short moves (maybe also on daily and weekly basis possible)
Now, let me explain. I use a 5-15 Min chart, with a SMA 50 on it.
Rule 1: Trade ONLY in direction of the Trend...
Setup:
zoom out of you chart (in MT4 I use the second highest out-zoom factor ... can I call it this so? )
next, draw fibonacci lines with extensions for the last swing of at least 80 pips or so (for 15m chart)
Entry: Wait until price retraces to one fibo line and sell/buy (depends on trend!)
Exit: place first takeprofit of 50% of the trade a few pips under/above the next fibo in trend direction
Rule 2: Use a Stoploss!
Stoploss: place your stoploss in the near of the preceding fibo (so, the next fibo which is in the opposite trend direction)
Rule 3: No Trading when News are about to be released!
Rule 4: Use a maximum of 5% of your account on any trade (preferrably 2-3%)
Look at the chart to see what I tried to explain
Please leave constructive comments
Marc
greatings from Germany.
First of all, I am not sure if this "strategy" has been posted before, because all I learned was from this board.
But something striked my. Now I rely on this strategy and try (next to my Indicator strategy) so "indicate" intraday short moves (maybe also on daily and weekly basis possible)
Now, let me explain. I use a 5-15 Min chart, with a SMA 50 on it.
Rule 1: Trade ONLY in direction of the Trend...
Setup:
zoom out of you chart (in MT4 I use the second highest out-zoom factor ... can I call it this so? )
next, draw fibonacci lines with extensions for the last swing of at least 80 pips or so (for 15m chart)
Entry: Wait until price retraces to one fibo line and sell/buy (depends on trend!)
Exit: place first takeprofit of 50% of the trade a few pips under/above the next fibo in trend direction
Rule 2: Use a Stoploss!
Stoploss: place your stoploss in the near of the preceding fibo (so, the next fibo which is in the opposite trend direction)
Rule 3: No Trading when News are about to be released!
Rule 4: Use a maximum of 5% of your account on any trade (preferrably 2-3%)
Look at the chart to see what I tried to explain
Please leave constructive comments
Marc
Per aspera ad astra!