Advanced system #1 (Midnight setup)
Submitted by Edward Revy on April 29, 2007 - 08:11.
Ready to dedicate your midnight hour to Forex trading? This strategy can be your winner.
Trading strategy setup:
Currency pair: GBP/USD or any other.
Time frame: 1 day.
Indicators: None.
Trading Rules:
This system is based on the fact that most of the time you won't find same size candles for 2 consecutive days on a daily chart. What does this mean for us – only one thing: the price is moving steady either up or down with almost no price "noise" which is always present on smaller time frames.
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Thank you for your reply, Edward.
One more question, please. Should I calculate pivot points according to GMT+2 as well?
Regards,
Galina
You're welcome, Galina
I'd recommend using EST time from midnight to midnight for calculating Pivot Points.
Regards,
Edward
Hi Edwuard, I think this strategy works much better on weekly charts than on daily charts, which is your opinion?
Thanks for all the work done here
Joan
Hi Joan,
Weekly trading requires wide stops. I'm not sure I tried to compare weekly against daily trading for this method before; it may require some additional adjustments/rules.
Regards,
Edward
thanks for your answer edwuard
joan
Hi, just wondering say if you have placed a BUY and SELL stop order (based on GBPUSD pair) for today's midnight (+5 pips up and -5 pips down). Then the price subsequently moves up to hit my BUY order and then later moves down to hit my SELL order as well... which means to say, I am now with 2 positions open... does scenario is it possible? IF it happens, what should I do?
Jo'
Hi Jo'
In this case you won't be left with 2 orders. You'll have just one open.
For example, when a Buy order is hit first, its stop loss is placed 3 pips below the candle. If price goes down, it'll hit your stop order first.
Only then it'll open a Short trade (which was set 5 pips below the candle). So, you'll be left with one Sell order at the end.
Regards,
Edward
#If the price bar (including shadows) is less than 90 pips long we will not open new trades on the next day.#
Hi,
why not? Please explain. Thanks.
Peter