Hi all
Trust everyone is well...
My philosophy in trading is TO keep it simple and stick to your trading plan...
I use a 200ma & 50ma simple and a 20ma exponential...The 21CCi and 10CCI are key as well for trends...
I work off a Daily, 60min and 15min charts for specific entry points.
The 1st point is to always remember where you are compared to to your 200ma. This is critical and the greater the distance you are away from the 200ma the greater the chance of an aggressive pullback to the 200ma.
There are 3 stages in a move...
1) The drive away from the 200ma..Use the 20 and 50ma as a support or resistance.
2) The pullback and break of 20ma and 50ma..This is what we call thE Box strategy when the candles are boxed between the 200ma and the 50ma... Be careful here as u never truely know the exact support and resistance levels... However the 50% retracement rule is key here and calculate this before every trade... Look at the GBPJPY chart below... The 1st higher low before the break of the 20ma was key and then the break of the 50ma for a 50% move, then a retacement for a 123 setup and a bounce off the 50ma for a pullback to the 200ma....
3) At the point of return to the 200ma is key..This is the resting point and you need to wait for a clear move for the direction... The 21CCI is key here and on every time frame the 21 CCI shows me the trend...
Lets look at GOLD... I have to admit i love Crude as well and been long for quite a while and bought again on each dip... Its bid and its about taking advantage of these trending markets...
Ok Gold...Look at the Daiy chart below and the breakout of the resistance line..Look how the 21CCI broke above the 0.00 level for a clear change in trend. This strategy is the box strategy because we are positioned betweeen the 200ma and 50ma as shown on the chart so we need to be careful of the 50ma as a resistance level here...
Ok lets look at the break on the 60min chart as the daily was set for the break...Look how the candles break the 50ma on the 15th and the 200ma before hitting the daily 20ma (dotted yellow line)..This was 1st target..Here we wait for a retracement back to the 60min 20ma and 50ma before the momentum up again... Can u see the 21CCI (in green), showing the way and the dip down below the 10CCI, before it bounces back above the 0.00 for a move higher... Perfect setup and no need to head to the 15min for an entry...
Recently with the markets being so bad i have had to move onto the 15min on the currencies for entry points so i can grab at least 25 points on each trade on the london open...I tend to pick 3 or 4 from the 10 pairs...
I have specialised on this for ages and it definitely works...
Take a look at the GBPCHF chart below today on the 15min chart..The CHF looked bid, even in a quiet market and i have to admit GBPCHF is my favourite currency pair...Look at the 123 retracement back to the 200ma led me to believe this was a short for today... USDCHF started to move as well but look how the 21CCI showed me the way for a move lower from 2.0500 to 2.0420... Look at the JPY currencies as well... Quiet similar to the CHF today to be honest with USD weakness all round...
I focus on pairings of CHF's , GBP, EUR's and then JPY's and when these pairs move together i then look for the best setup and then trade the 2,3 or 4 pairs and this tends to bank me quite a bit each am from 6.30 am to 10am...
Dont trade US anymore as i dont really need to now and i like to stay fresh each am for the 1st move...Prefer to be with the family...
There is a little bit more to it and i will cover it later but that is the idea...
KEEP IT SIMPLE...
