Posted by: joetradingplace | March 26, 2015

Understand this simple strategy

If you look at my previous posts, i posted a mechanical strategy that mimics my discretionary price action trading. I found price action to be very difficult to teach and i think traders will develop price action by studying charts themselves rather being taught. Its a skill that a trader builds over time and there is no short cut. So the strategy i posted is a trend following and it is easy to follow…looking at the charts below, yu can notice how easy it is to trade it.

Looking at the cable trade…

1. recent momentum is up (so i am only looking to buy)

2. I then look for BEARISH bar that closes below the BB

3. Place buy limit below the bar

 

Looking at the Gbpaud trade

1. Recent momentum is down (so i am only looking to sell)

2. I then look for BULLISH bar that closes above BB

3. Place a sell limit above

It is a very simple strategy but very effective, a very profitable trend following strategy.2015-03-26_10-282015-03-26_10-292015-03-26_11-06

Advertisements

Responses

  1. Last 5 positions have been stopped out at BE on long cable, but 1st target was reached at 0.5% gain…GBPAUd short still playing, a few pips to 1st target.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: