Karmo's trading strategy trading GBP/JPY

1. Fibonacci retracement levels
2. Trend Line/Channel
3. 5 period simple moving average
4. candlestick pattern
5. support/resistance level
6. momentum

As you can see, with the exception of Fibonacci retracements, this is all simple and basic, as every trader can use it in a different way. If you have any questions about anything I use, please ask or do a simple Google search and you'll find tons of information about them.

It is important to use Fibonacci retracements on different time frames (1 hour, 4 hours, daily, weekly) because sometimes some of them overlap, which tells us where strong support/resistance is likely to be found. I'll post some examples.

If you have been following my posts on Auslanco posts, you will know that we use the 5SMA as a good entry point when a pullback occurs (thanks Auslanco).

Most of the time I trade based on the 4 hour chart, but I look at the daily and sometimes weekly charts. I use the 1H chart as a good entry point. Any TF smaller than 1H will create a lot of noise, and trading GJ on a very small TF is very risky.

Using a stop loss, I always wait for my trade to go my direction for about 50-100 pips, then I move the stop loss and lock in a very small pip (10) and then let it run until it reaches my target price, this way I don't let a winning trade turn into a losing trade, and if my stop loss gets hit, don't worry because +10 is better than anything negative

Momentum and 5sma
Before using the momentum indicator and 5sma, you must have auslanco's QQE indicator. I'll explain how to capture callbacks in the following example:
When the QQE 4 hourly crosses up, the QQE 1 hourly crosses up, and the momentum at the start of the next 1 hour candle is down, the price will typically retrace to the 1 hour 5 hourly moving average, simple as that.

QQE and Gann Hilo can be found here http://www.forexfactory.com/showpost...&postcount=654