My Trading Style
Here my trading style by using the charts in http://waveriderfx.com/blog/?p=49.. not so much advanced techniques or anything but basically it had helped me tamed the unruly beast which is GBP/JPY pair.. here it goes….
Bismillahirrahmanirrahim…
When I approach the trading platform.. the first thing I do is… If it’s the weekend.. i’ll look at the weekly chart first.. then i’ll look at the monthly chart just to get a grip of the prevailing trends in the monthly timeframe chart.. first thing i’d check is the pattern of the candlestick.. then i’ll check on the stochastics and see whether the price is in overbought or oversold zone.. then i check the EMA’s.. if the price had went over a particular EMA then i’ll forecast a possible retry of the EMA because in my book EMA is treated as a dynamic support and resistance… if not then i’ll go to the daily timeframe and assess the same thing.. stoch first and then the EMA’s… the bigger EMA the bigger the resistance or support it offers.. from the daily timeframe i’ll backtrack to 4H,1H,30M,15M and lastly to 5M… i’ll only enter when at least 4 timeframe’s stochastic are in the 80-100 or 20-0 zone at the same time and the timeframes must be consecutive starting from 5M… and for my entry i’ll based it on 5M price to catch the best entry..
For my stoploss it’ll depend on the highest price or lowest price on the 5M chart on which I used to place my entry or in the case of GBP/JPY my SL is 100 pips from my entry price.. if it’s GBP/USD i’ll pick the lowest or highest price in the 5M chart and +10 pips for my SL… and the TP will be 30-50 pips.. but if you are in front of the pc and monitoring the trade then you could close the trade once 5M,15M and 30M timeframe had entered the OB or OS zone and is against the direction of your trade… bonus TP is when 5,6,7 and 8 consecutive timeframes are in the same directions..
The key is 5M,15M,30M and 1H timeframes are aligned at the same time.. and the entry should be based on the 5M timeframe and the closing should be based on tf 5M,15M and 30M entered the OB or OS zone at the same time and had crossed.. when there is more than 4 timeframes are aligned then prepare for a feast of pips which could range from 200 - 400 pips and more..
i’ve never tested on other pairs so I could not comment on it.. I only test this on GBP/JPY and GBP/USD only..