Hello Ladies and Gentlemen! I'd love to present my trading system.
MARKET MODEL -- a general version of price behavior. There are three Kinds of price action: Price follows the principal trend -- day after day the price is greater (or lower). It normally lasts 2-5 times (2-5 candles of the exact same color) with no significant retracement. I call it 'trend impulse'</b>. Sometimes price has a break in its own rally for a couple of days. It moves within a narrow range (about 1 percent of its value) from boarder to boarder. I call it'small range'</b>. From time to time, after several cycles of trend impulses and tiny ranges, there's a grater retracement. This retracement usually takes off 4-5 % of the price and forms a broad range that survive a couple weeks or even weeks. I call it'big range'</b>. Finally big range finishes, price begins a new rally towards the previous or opposite direction, and each of the game begins from the very start.
SYSTEM DESCRIPTION:
FIRST: I look for the market that acts as described. I use weekly and daily charts. If a market doesn't behave my way, I don't use it to trading! REMEMBER! -- It's not the purpose to construct a trading system that works good on any market. The purpose is to loe the market on which you are able to earn money!!!
I trade EUR/USD only, but USD/CHF is good as well.
SECOND: I identify trading conditions -- what sort of price action we're currently in. I use weekly and daily charts, too, but look at them from closer standpoint.
Some expertise, ADX(13), MACD(8,21,5) and OsMA(12,26,9) can be useful in this point.
THIRD: I adjust my trading method to the trading conditions. In trend impulse I'm in the match to the trend management. If I'm not, I look for any small retracement to go into. I use 15m charts, RSI(5) or Bulls/Bears Power(6). No SL or TP here! I get out as soon as the impulse is coming to an end. In small range I exchange out of boarder to boarder, in the two directions. I use 30m charts. RSI(5) and Bulls/Bears to get in, RSI(5) or TP close to the other range boarder to get out. No SL or TP towards the main fad; SL and TP when trading against it. In big range I also exchange from boarder to boarder. To get in and out I use: Daily charts with RSI(5) 240m charts with MACD(8,21,5) - to affirm the reversal. Divergences of price and MACD or OsMA may also happen useful 30m charts -- to have a close watch price action, particularly in the boarder neighborhood. I use no SL in big range, even when trading against the primary trend. I use a hedging order instead -- how it works I'll describe sometime in future.
IN THIS JOURNAL I am posting my trading action and tips. You'll also loe them on my website.
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