TRADE ANY MARKET THAT MAKES SENSE FOR YOUR LIFESTYLE. DON'T WORRY ABOUT WHICH MARKET IS OPEN, WHICH IS CLOSED.
1. Chart Set Up
Save as template:
H4 candlestick chart with period separators. Add to this chart a standard RSI indicator set with period (3). That's it...all there is to it! As below:
2. Check Trend on Weekly, Daily, and H4 Charts
This is the most important part of this method. All three (3) timeframes (TFs) must be in agreement (confirmation) on direction.
Scan through any or all pairs you wish to trade and jot down only those which have confirmation of direction on all three TFs. Do this by observing the RSI.
For LONG: RSI should be pointing between 12:00 and 2:00. 3:00 is neutral.
For SHORT: RSI should be pointing between 4:00 and 6:00. Again, 3:00 is neutral
NOTICE ON THE CHART BELOW THAT THE DIRECTION IS DOWN, OR SHORT. (RSI IS BETWEEN 4:00 AND 5:00 O'CLOCK)
Now look at the most recent price action (PA).on the chart below Notice that it is also short. This will be a pair "of interest" if and only if the direction on the daily and weekly charts confirm the H4 chart direction.
3. Concentrating only on those pairs with trend confirmation and one at a time:
On H4 chart take a long look at what you see. You know the direction you are looking for from your previous scan of the pairs. (Marking with an arrow helps give a quick reference to direction.)
Draw trendlines (TLs) connecting bottoms for LONGS and connecting tops for SHORTS.
NOTICE ON RECENT CHART #2 BELOW - USDCHF
4. Entry
Here is where patience comes in. Enter in designated direction only after PA has tapped the trendline 3 times (Knock three times on the...oh well). This "refinement" is David's idea on Trendline Scalping thread....thanks David.
NOTICE ON CHART #2 BELOW - USDCHF... THAT IT TOOK 9 CANDLES (36 HOURS) FOR THE THIRD TAP! THAT'S PATIENCE, BUDDY!...BUT LOOK AT THE PAYOFF..
5. Take Profits (TP) and Stop Losses (SL)
You can place set TP and SL if you are more comfortable with that. I use support and resistence levels for both. Remember that H4 and larger TFs must have more breathing room, so do not place SL too tightly.
That's it. Anyone interested, we can all open a demo account for $10,000 and see how quickly we can double it (using reasonable and sound money management (MM) practice, of course).
Trade What You See by lawgirl21
1. Chart Set Up
Save as template:
H4 candlestick chart with period separators. Add to this chart a standard RSI indicator set with period (3). That's it...all there is to it! As below:
2. Check Trend on Weekly, Daily, and H4 Charts
This is the most important part of this method. All three (3) timeframes (TFs) must be in agreement (confirmation) on direction.
Scan through any or all pairs you wish to trade and jot down only those which have confirmation of direction on all three TFs. Do this by observing the RSI.
For LONG: RSI should be pointing between 12:00 and 2:00. 3:00 is neutral.
For SHORT: RSI should be pointing between 4:00 and 6:00. Again, 3:00 is neutral
NOTICE ON THE CHART BELOW THAT THE DIRECTION IS DOWN, OR SHORT. (RSI IS BETWEEN 4:00 AND 5:00 O'CLOCK)
Now look at the most recent price action (PA).on the chart below Notice that it is also short. This will be a pair "of interest" if and only if the direction on the daily and weekly charts confirm the H4 chart direction.
3. Concentrating only on those pairs with trend confirmation and one at a time:
On H4 chart take a long look at what you see. You know the direction you are looking for from your previous scan of the pairs. (Marking with an arrow helps give a quick reference to direction.)
Draw trendlines (TLs) connecting bottoms for LONGS and connecting tops for SHORTS.
NOTICE ON RECENT CHART #2 BELOW - USDCHF
4. Entry
Here is where patience comes in. Enter in designated direction only after PA has tapped the trendline 3 times (Knock three times on the...oh well). This "refinement" is David's idea on Trendline Scalping thread....thanks David.
NOTICE ON CHART #2 BELOW - USDCHF... THAT IT TOOK 9 CANDLES (36 HOURS) FOR THE THIRD TAP! THAT'S PATIENCE, BUDDY!...BUT LOOK AT THE PAYOFF..
5. Take Profits (TP) and Stop Losses (SL)
You can place set TP and SL if you are more comfortable with that. I use support and resistence levels for both. Remember that H4 and larger TFs must have more breathing room, so do not place SL too tightly.
That's it. Anyone interested, we can all open a demo account for $10,000 and see how quickly we can double it (using reasonable and sound money management (MM) practice, of course).
Trade What You See by lawgirl21