Seems you've semi stumbled across a method of trading that i use on the 4h.
Maybe a look at what i do may reaffirm or add some ideas to your plan.
Pairs traded are all combinations of the Eur, Usd, Jpy, Gbp, Aud, Nzd, and Chf.
I do a quick look at all combinations of a single pair to see if there are any trends to trade in that direction. The definition of trend i use is 2 or more consecutive high or low breaks in the same direction. Europe could be under attack by technologically advanced aliens and US could be allies of those aliens but if the EU shows 2 consecutive breaks up then for me the trend is up.
The setup is just as you have it there plus i require that the move doing the pushing up or down through a recent high or low be large in comparison to the last couple. I will not trade into channel high/lows.
Stops: The highest value of ATR(36) with SMA (36) for the last 2 weeks
Target: A channel high/low or 2x stop
I may take a look at the recent news concerning some pairs but it's never an in depth study. Thats the gist of it.
Basically, the goal is to try to gauge the level of strength for each individual currency, trade pull backs on what i beleive is likely to succeed and tp into or before channel high/lows or into space.
Maybe a look at what i do may reaffirm or add some ideas to your plan.
Pairs traded are all combinations of the Eur, Usd, Jpy, Gbp, Aud, Nzd, and Chf.
I do a quick look at all combinations of a single pair to see if there are any trends to trade in that direction. The definition of trend i use is 2 or more consecutive high or low breaks in the same direction. Europe could be under attack by technologically advanced aliens and US could be allies of those aliens but if the EU shows 2 consecutive breaks up then for me the trend is up.
The setup is just as you have it there plus i require that the move doing the pushing up or down through a recent high or low be large in comparison to the last couple. I will not trade into channel high/lows.
Stops: The highest value of ATR(36) with SMA (36) for the last 2 weeks
Target: A channel high/low or 2x stop
I may take a look at the recent news concerning some pairs but it's never an in depth study. Thats the gist of it.
Basically, the goal is to try to gauge the level of strength for each individual currency, trade pull backs on what i beleive is likely to succeed and tp into or before channel high/lows or into space.