Fractal/Swing Trading Method With Trend
EDIT, - I don't use this STR myself
Hello everyone.
This is a simple trading method that I would like to introduce using fractals, which are the price action itself. I will trade on the 4 hour timeframe due to accuracy and not being glued to the screen. For the sake of simplicity, I want the method to be as mechanical as possible. On the other side of the coin, the rules are not written in stone, so I will use some judgment and common sense, as well as the flexibility to adapt to changing market conditions. To better focus, I will primarily trade the EUR/USD currency pair.
The fractals I will use in my method serve two purposes, they will determine the trend at a certain level on their own, and they will help visualize fluctuations for lazy traders. Any positive suggestions and comments are greatly appreciated.
Rules/Guidelines
1. I will use confirmed fractals. A confirmation fractal is a combination of five candles, where the two candles on either side of the middle candle are higher (bullish fractal) or lower (bearish fractal) and the third candle is located after the middle candle closes.
2. If the low of the bullish fractal is higher than the low of the previous bullish fractal, it means the market is forming a higher low and that is where I might be interested in buying.
3. If the high of the bearish fractal is lower than the high of the previous bearish fractal, it means the market is forming a lower high, which is where I might be interested in selling.
4. If the entry was not two o'clock later, I would have opened the position after the next candle opened to confirm the fractal, meaning the market was already far away from the low/high of the fractal. If the move exceeds 100% of the ADR10 value, I will not take the trade, so I will wait for the retracement, and it is better to enter on a bullish candle (if the fractal is bullish) than on a self-retracement. The flip side of a bearish fractal.
5. If the fractal is bullish, then the third candle after the middle candle should also be bullish rather than bearish. Just the opposite of a bearish fractal.
6. As I said, the fractal itself shows some degree of trending, just with higher volatility than before in an uptrend (or the opposite of a downtrend), but it is better to be more picky and trade in the direction of a higher time frame, such as daily trading in this case.
7. The stop loss is either the lowest point of the fractal (if not too far away from the market price) or 50% of the ADR10 value.
Take profit is either around 80% of the ADR10 value, or you can close your position at support/resistance areas, even when you think the market is exhausted. Also, I prefer safety so I would move sl to BE after 30-60 pips or other profits based on volatility and discretion.
S.
Attach ADR indi if needed (from somewhere in FF)
Hello everyone.
This is a simple trading method that I would like to introduce using fractals, which are the price action itself. I will trade on the 4 hour timeframe due to accuracy and not being glued to the screen. For the sake of simplicity, I want the method to be as mechanical as possible. On the other side of the coin, the rules are not written in stone, so I will use some judgment and common sense, as well as the flexibility to adapt to changing market conditions. To better focus, I will primarily trade the EUR/USD currency pair.
The fractals I will use in my method serve two purposes, they will determine the trend at a certain level on their own, and they will help visualize fluctuations for lazy traders. Any positive suggestions and comments are greatly appreciated.
Rules/Guidelines
1. I will use confirmed fractals. A confirmation fractal is a combination of five candles, where the two candles on either side of the middle candle are higher (bullish fractal) or lower (bearish fractal) and the third candle is located after the middle candle closes.
2. If the low of the bullish fractal is higher than the low of the previous bullish fractal, it means the market is forming a higher low and that is where I might be interested in buying.
3. If the high of the bearish fractal is lower than the high of the previous bearish fractal, it means the market is forming a lower high, which is where I might be interested in selling.
4. If the entry was not two o'clock later, I would have opened the position after the next candle opened to confirm the fractal, meaning the market was already far away from the low/high of the fractal. If the move exceeds 100% of the ADR10 value, I will not take the trade, so I will wait for the retracement, and it is better to enter on a bullish candle (if the fractal is bullish) than on a self-retracement. The flip side of a bearish fractal.
5. If the fractal is bullish, then the third candle after the middle candle should also be bullish rather than bearish. Just the opposite of a bearish fractal.
6. As I said, the fractal itself shows some degree of trending, just with higher volatility than before in an uptrend (or the opposite of a downtrend), but it is better to be more picky and trade in the direction of a higher time frame, such as daily trading in this case.
7. The stop loss is either the lowest point of the fractal (if not too far away from the market price) or 50% of the ADR10 value.
Take profit is either around 80% of the ADR10 value, or you can close your position at support/resistance areas, even when you think the market is exhausted. Also, I prefer safety so I would move sl to BE after 30-60 pips or other profits based on volatility and discretion.
S.
Attach ADR indi if needed (from somewhere in FF)
Attachment to original post (1)
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