KN_FXtrader

A profitable strategy for short term trading!!

FX_IDC:EURUSD   Euro / US-Dollar
The only tools we are going to use are resistance and support Lines, trendlines , EMA 10 and EMA 20.

The strategy step by step is the following:

1) In the 4hour chart we draw the support and resistance Lines of major levels. We also get an idea of the intraday trend.
2)Then, we are going lower to 1 hour chart. We try now to draw channels or trendlines . Again we are looking the trend. 4 hour and 1 hour should be the same.
3)We are moving forward to 15min chart. Here is the ''game''. We have obtain the short term-intraday trend from the previous timeframes. We are now looking for retracement moves. As we find them we are waiting for a strong candle. In our chart we can see that after a retracement, doesn't matter how big it is, the price go over the EMAs Due to our bearish trend we would place our short positios as soon as a strong bearish candle appears. By the term ''strong'' i mean a candle whose body is bigger than the last bullish candle (the more bullish candles it ''eat'' the better). This is the 1st condition to put a Trade. The second is the strong bearish candle to cross downwards the EMAs. I mean to close below them.

So pay attention on the 2 conditions that exists in that strategy. In the Top of the graph we can see an incorrect entry bar. Although the price go lower it is not as safe as the way i described above.

Trading is somtimes very simple. You do not need any indicator. And don't forget. The simpliest is the best!!!!
I am waiting your comment.....
Thank you for reading....
Sorry for double posting this. Thought the first comment wouldn't be there...
Antworten
Thanks for this strategy. I honestly really appreciate it! Here are my thoughts: In my opinion it is brilliant. Why? Combining multiple time frames with price action is better than any indicator. The break of the 10/20 EMA as an entry trigger is great (this EMAs act in general as support/resistance). Drawing also the 4h horizontal trend lines is also important because of good to know to have resistance behind an entry. Then after an entry you will use the power of the aligning 1h/4h trend. For trade management I would use to take 1/2 after reaching 1:1 risk to reward and let the remaining run till opposite engulfing candle apears or reaching the 4h horizonal trendline respectively the other side of the channel. @KN_FXTrader: Are you still using this strategy currently? Best regards, Thomas
Antworten
Thanks for this strategy. I honestly really appreciate it! Here are my thoughts: In my opinion it is brilliant. Why? Combining multiple time frames with price action is better than any indicator. The break of the 10/20 EMA as an entry trigger is great (this EMAs act in general as support/resistance). Drawing also the 4h horizontal trend lines is also important because of good to know to have resistance behind an entry. Then after an entry you will use the power of the aligning 1h/4h trend. For trade management I would use to take 1/2 after reaching 1:1 risk to reward and let the remaining run till opposite engulfing candle apears or reaching the 4h horizonal trendline respectively the other side of the channel. @KN_FXTrader: Are you still using this strategy currently? Best regards, Thomas
Antworten
KN_FXtrader

I dont understand how you can draw these two trendlines.

The support levels - to identify the bearish trend - are first sighted on the 26th and 27th according to this picture.

Am i missing something?
Antworten
How much back should we start plotting the support and resistance level? for instance like 1 month or 3 months or more?
Antworten
Thank You for sharing this sir. I have been using this strategy for quite some time and i must say its impressive. I supplement the strategy with RSI set to default (14). I add a 50 level to the 70 (overbought) and 30 (oversold) levels on the RSI. My entry rules are: enter long in rising channel or trendline when EMA crossover occurs and the RSI is above the 50 level/mark. Enter short when EMA crossover occurs and RSI is below the 50 mark. Entry only on 15Min TF.
This gives me an opportunity to add on to winning trades and maximize gains. However, i feel that i do not have a clear exit strategy for this and i end up losing some pips in the end. Can you please illustrate your exit strategy for the trades?? Thank You sir.
Antworten
aryahi29 PRO Josphat89
i'm expecting this reversal of tren to go as high as 1.1368 in stage 1 and then up to 1.1652 approximately.
my initial advice is not to follow downward trendl lines any more.. it ended today
+1 Antworten
there are some predictions stating that this uptrend may stop at 1.1310 so you need to be cautious at 1.1310 and 1.1368, and if it exceeds 1.1368.. could top 1.1652 or even more
+1 Antworten
in short, if the pl exceeds the current top trend line,, my prediction holds good.. and i expect it exceed the top trend line this time..
+1 Antworten
Yeah its simple to trade let observe
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