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. No indicators.
Trading Rules:
This system is based on the fact that most of the time you will not 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 no price “noise” which is always present on smaller time frames.
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if a doji happens, we closed all positions right,but do we set a new entry after a doji happens?
If a doji > 90 pips then there is no questions, we set orders next day. If not...
We know that a doji candle signals of a possible trend reversal. At your own risk - place only one order in the direction of anticipated trend change.
Edward.
Does anyone have the pip movement triggers for other currency pairs? ie for cable you suggest 90, for eur/usd you suggest 55, etc., What about the rest?
thanks,
Hi Edward,
I am just starting to use Oanda.
What time is the new daily candle formed in GMT+7?
Is it 11:00 AM?
Thanks
Hi,
Oanda uses the time zone set on your PC. Thus, the new daily candle will appear exactly at 00:00am your local time.
Simply change your PC local settings to another time zone if you want to trade daily with New York, London time or in any other time zone.
Regards,
Edward.
Hi Edward,
I know that we don't use any indicator for this strategy.
However, is there any indicator that we can use to predict trend reversal and the right exit point? Thanks.
David
Hi David,
Unfortunately, there are no such indicators capable of telling the very right time to exit. They all till some point can predict reversals, but they do it with an inexcusable lag when we talk about daily trading.
Fortunately, there are studies that can predict price's turning points, giving good hints on the nearby price "battlefield zones".
These studies are Pivot Points - weekly pivots and monthly pivots are a must for daily chart trading. Add to that Fibonacci levels and you've got a map of safe and risky trading intervals.
That's my choice and vision of trading it.
Regards,
Edward.
Different platforms do operate differently but.
If you place a buy limit order at a price higher than the current offer it usually gets filled immediately. A good broker will give you the lower price. I'm pretty sure that's not the way you intend to open a position with this strategy. It sounds more to me like you want to enter long using a stop market buy order. And yes stop orders are not for just closing a position.
This is a good system when markets are trending and can be refined by adding a SMA to trade only in one direction - with the trend.
but if you want to play it both ways you can simply place two stop orders at the same time for your entry and your stop loss exit. and as soon as you get a fill add your target order. I have found after yrs of trading that targets get hit more often when an order has been placed for the target.
steve b
perth
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