Trend and Go trading ~ forex trading hours christmas 2013
Trend and go is a trend-momentum strategy for intraday trading and swing.
Chart setup
If you want to setup your charts manually then you need to add the
following indicators:
- A 40-Period Exponential Moving Average of the Close price.
- A 80-Period Exponential Moving Average of the Close price.
- A 21-period CCI (Commodity Channel Index) indicator.
The second rule is that if you’re trading on the hourly chart (or any timeframe less than the hourly) – this is classed as intraday.
For this I recommend that you try and only trade between the hours of 06:00GMT and 16:00GMT. More specifically, if you can limit your trading to just 06:00GMT and 11:00GMT then your results should be even better!
If you’re trading 4-hour charts and above – it does not matter when
you trade.
So, that’s the first two rules.
The third (and final) rule is how we enter.
If the 40EMA is above the 80EMA we look to buy when:
The CCI indicator crosses from below 0.0 to ABOVE 0.0.
If the 40EMA is below the 80EMA we look to sell when:
The CCI indicator crosses from above 0.0 to BELOW 0.0.
Like this:
high to enter (in the case of a buy) – or a break of the low to enter (in the case of a sell).
So, looking at the above two charts I showed you, the level marked
‘(A)’ is where we would BUY ...and the level marked ‘(B)’ is where
we would SELL.
That’s all there is to the system!
Okay, there is a bit more like stoploss levels, take-profit target and some other things (which we’ll now cover) – but we’re about 80% or the way there!
Stoploss
The stoploss is super-simple.
We don’t place it behind any levels or such – but just enter a rough amount that will keep us “safe”.
It may not sound too strategic but it really works – especially because our stoplosses are generally smaller this way.
This is a rough guide to the size of my stoplosses on various
timeframes:
5-min 10 – 15 pips
15-min 15 – 20 pips
30-min 15 – 25 pips
Hourly 20 – 35 pips
4-Hour 30 – 50 pips
Daily 50 – 150 pips
Note: some of these may be larger or small depending on the pair
(for example, on the EUR/JPY 30-min I might use a 30 – 40 pip stoploss).
After just a few trades you will figure out the best stoploss to use for your trading.
Take Profit
Okay – the fun part – when to grab your pips!
I’ve tried many different ways of taking profit on my trades.
I’ve tried grabbing just 10 pips at a time ...I’ve tried letting my trades run for as long as I can ...and I’ve tried everything in between!
The take-profit strategy that I ended up sticking with is just taking profit at 3:1.
In other words, if my stoploss is 25 pips ...then I will set my take profit at 75 pips.
However, once price reaches 2:1 – I will move my stoploss to breakeven so that if the trade reverses against me – I lose nothing!
The Type Of Candle
The first thing I want to mention is probably the most significant thing that will boost your profits (and keep you out of bad trades!).
Although we only need to watch for when CCI crosses the 0.0-line ...we can also gain a nice advantage by watching what type of candle occurs at the same time the CCI crosses the 0.0-line.
Our ideal candle would be one that has momentum behind it – in other words, a long candle that is the same (or larger) than the few candles before it.
This type of candle shows that there is buyers (or sellers) coming into the market.
Here’s an example:
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