These rules are essentially the same as the London open rules. Trading with the higher time frame trend with entry timed from 1 min (or 5 min) charts. Many traders would say the 1 min is noise, this method attempts to reduce the noise by trading with trending pairs with genuine strength/weakness and entering on retracements (higher lows, lower highs).
- there is often a period of drift after London morning moves, this could be to form a range or small counter (the days) trend move.
- in the absence of a strong counter trend move we would be looking for the US session to revert to the direction set by London.
- trading where currencies are agreeing across 2 or more pairs. It could be both the eur and gbp against either aud, jpy, nzd or cad. Or it could be eur or gbp strong/weak across multiple pairs. See some of the 1/5 min charts posted in January that clearly show the idea, which is to be trading a currency that has genuine strength or weakness.
- higher lows or lower highs (abc or 123 patterns) for entry.
- the test or break and test of a range.
- trading buy above, sell below the 1 min 100 lwma (20 lwma on 5 min) looking for clean AB moves and small BC retraces to set up clean higher lows/lower highs.
- thereafter continuing to take higher lows/lower highs with strongly moving pairs.
- taking care to avoid trading the major news events that can be highly volatile.
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