Taking EURUSD chart as a example.
Wanted to share simple and effective trading system with all, I use this system many times with some added filters which increases the winning ratio. I am sharing the basic idea, any trader can use the base for any chart of any instrument. Basic rules are as below.
1. Trade long or short whenever price trades above or below previous swing high or low. (one can wait and use the close also, but it needs more study and filtering of system).
2. Exit the trade as soon as price hits .70% mark in the direction of the trade.(.70% can be customized according to different instruments as volatility and way of price move changes from instrument to instrument)
3. Stop needs to be placed above or below entry in short and long trades respectively. (keep risk to reward ratio in mind while placing the stop as it must be in sync with money management)
I am sharing this as simple trading system, traders are expected to refine the system as per their markets and their trading style. All the best for development of the same.