Keep it Simple Stupid (KISS) Method
Well, I'm new to Forex, so I apologize if this "system" appears elsewhere on this site.
I just use Bollinger Bands (not required - but useful) and mark one eyeball!
The system should work on any timeframe and on any currency pair (after all the only real difference between short and long timeframes is size!)
Basically, I look for extremely clear changes in the direction of price movement (see attached image). Remember, the reversal will be obvious
Good signals will be at the very edge of the bad Bollinger Bands lines and will contain classic candlestick reversal patterns (just study candlestick reversal patterns)
Depending on how much leverage you want to have in the move, then your stop loss will be slightly lower than the previous low/high of the big candle.
Usually, a total stop loss of 15-25 pips on the 1 minute timeframe (EUR/USD) is enough - but of course depends on the size of the reversal candle.
Take profit will vary, but generally if you look for 10 pips on the 1 minute time frame you can't go too far wrong.
Using this method, you should be able to get 10-20 trades per day, averaging 10 pips, and 200 pips should be relatively easy to achieve!
I'm sure there are hundreds of metrics that could be added to improve the system - but the point is KISS!
If I've made any obvious mistakes - please feel free to let me know - and good luck with your trading!
Another indicator (200sma) newmacd is just as a guide - 200sma is useful
I just use Bollinger Bands (not required - but useful) and mark one eyeball!
The system should work on any timeframe and on any currency pair (after all the only real difference between short and long timeframes is size!)
Basically, I look for extremely clear changes in the direction of price movement (see attached image). Remember, the reversal will be obvious
Good signals will be at the very edge of the bad Bollinger Bands lines and will contain classic candlestick reversal patterns (just study candlestick reversal patterns)
Depending on how much leverage you want to have in the move, then your stop loss will be slightly lower than the previous low/high of the big candle.
Usually, a total stop loss of 15-25 pips on the 1 minute timeframe (EUR/USD) is enough - but of course depends on the size of the reversal candle.
Take profit will vary, but generally if you look for 10 pips on the 1 minute time frame you can't go too far wrong.
Using this method, you should be able to get 10-20 trades per day, averaging 10 pips, and 200 pips should be relatively easy to achieve!
I'm sure there are hundreds of metrics that could be added to improve the system - but the point is KISS!
If I've made any obvious mistakes - please feel free to let me know - and good luck with your trading!
Another indicator (200sma) newmacd is just as a guide - 200sma is useful
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