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Buy the dips, sell the rallies - MT4/MT5 resources

author EAcpu | 3 reads | 0 comments |
Here is an overview and example of my current trading strategy. I trade the London session on the DAX, which usually stops after an hour and a half (although many times trades take place later in the day) to limit my time. First, a weekly review of the high time frames, looking at D1 and H1, but my main interest is the direction and target of m15 and the entry of m1. I will try to align my trades with Elliott Waves, but this particular article focuses on trade setups.
These are the basic checks:

  1. Check the news and higher time frames (h1 and d1) for potential reversal levels and trends
  2. View m15 targets, favorable price action and direction
  3. Good m1 moves up
  4. Retrace via accelerated correction (AC) or level flipping
  5. Fusion - usually a strong level
  6. Set candles

The first picture is the appearance of m15. We see a breakout from LO to ONH, followed by a strong impulse candle to the upside.
The second picture is the story on m1

Trade Management - After breaking out of the previous high, I set SL to BE. I was lucky not to get stopped out when the price dropped back below ONH, but it held. With low risk entry, I was able to exit early and resist becoming too greedy. It works either way, but as long as I'm making more than 3R per trade, I'm happy.
In this case, I decided to set the trailing candle at the M5 target price and exit with 8R (1% risk would bring 8%). This is one of the better trades, although I usually aim for at least 3R, which allows me to profit with a win rate of over 35%.
I have been trading with this strategy for two years and am still learning something every day. As with all trading, the most important thing is discipline and patience, with which we will be rewarded.

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