If you have read any of my past posts, you will know that I change filters and time frames but I always use market structure highs and lows to enter trades.
Here is an example using ichimoku clouds as the filter on a 5 pip constant range chart.
So it is a trend day and you were not awake when the trend started. Where do you jump in???
CCI to the rescue!
I have developed a simple system that utilizes CCI divergence, TMA bands and 13 pip range bars to trade pullbacks, allowing you to enter trades in the direction of the trend.
On the chart 1) is a bullish CCI divergence.
2) Confirmation of the trend/trade direction
3) Entry signal – piercing of TMA bands.
It is important to wait fot the the TMA bands to be pierced. If they are not pierced, then no trade.
To keep this a low risk trade – use a 6 pip stop and target at least 12 pips.
Looking at a market profile view of the GBPUSD you will immediately notice that price has been trading in a range smaller than the single range of last Friday.
The double inside day usually means when we do break out of the existing range, we could be in for some pretty big moves.
It is also of interest that today’s high was right at Friday’s VIRGIN POC and with 30 minute tweezers. That first time virgin bounce was good for about 50 pips, but never made it down to the virgin created yesterday at 1.5431. That with todays action created a virgin at 1.5479 creates a nice trading range between the two virgins
I think virgin POC’s are good complimentary indicators so look for whatever system you use to give entries around 1.5431 and 1.5479.
Trade well.
First, if you don’t know what I’m talking about when I say “Quarter Levels” then you need to go over to my good buddy Mongolians thread on Forex Factory. The thread is “Make Money Everyday: A Guide To Short Term Trading” – brilliant concept.
I have incorporated the quarter levels into my trading and am amazed at how price respects these psychological support and resistance levels. Mongolian advises in his thread to just use the levels to scalp 12 pips all day long, which I have done and I must report is very doable. However, I never being settled, have been tinkering with a way to stay in trades longer…so I have been toying with a few indicators to the pure price action method Mongolian uses.
I have been playing with a system called “Forex Gold H1″ on a 5 minute chart. I have not tested it out with cold hard cash so I cannot offer you anything other than my observations.
Thus far, it seems pretty promising.
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Everything you need follows:
thenYou should be up and running in under 10 minutes. Let me know if you have any problems.