- April 11, 2017
- Posted by: Forex Wiki Team
- Category: Forex Trading System
The only pattern You need to trade.............................
I am using a grid on all my charts..............
for 1min it is 1 pip grid
for 1 hour it is 10 pip grid
for daily it is 50 pip grid
for monthly it is 500 pip grid
my S and R lines are at those lines It can not be anywhere else on the chart only at those lines...........the other factor needed to determine those S and R line is the price...........so digest that to go to the next part
The candle upper wick is the result of selling overcoming buying...........
The candle lower wick is the result of buying overcoming selling............
If one candle upper wick touches or passes through our lines that line is a R..............
If one candle lower wick touches or passes through our lines that line is a S...............
If more than one candle upper wicks touch or pass through the same line that increases the importance of this R line.......
If more than one candle lower wicks touch or pass through the same line that increases the importance of this S line.......
The lower the time frame where these events happen the lower the odd that a R line or S Line will hold the price............the higher the time the more the odds.............
our setup is a candle hitting a R line followed by a candle reversing down to below the 1st open...........so the odds that the price will continue down for some time is higher than the reverse...............
Or a candle hitting a S line followed by a candle reversing up to above the 1st open...........so the odds that the price will continue up for some time is higher than the reverse...........
Our entry to a trade:
***find R/S lines in one hour chart..................
***wait for the price to come to those levels...........
*** watch the reaction to those lines on one minute chart............
***if you have the setup on one minute chart at the line or slightly above or below i.e you have a reversal take the trade sell for R and buy for S
***for your stop it can be above the setup in selling or below the setup in buying especially if you are a scalper..........but if you trading for more shot put your stop according to 1 hour chart it is highly variable but one of the ways to do that is to put it above the highest candle upper wick that penetrate the R line in selling and below the lowest candle lower wick that penetrate the S line............
***I prefer to be scalper and the swing trader at the same time buy applying the second method of stop determination......
*** TP take scalp if the market let you and leave some for runner
*** when you have a run protect your trade as soon as suitable
Buy.................
*** One bear bar hitting the line with its lower wick.............
*** One or (more) bull bars closing above the bear bar open............(less is more)
*** Take profit take what you can take
*** Stop below the bear bar
Sell............
OPPOSITE
SIMPLE
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