Disclaimer

Disclaimer: This blog should be read as a 'whiteboard' of my daily thoughts and ramblings and specifically not, in any way, advice to trade. My interpretation of the works of Gann, Goodman, Fibonacci, Elliott, Hurst et al; is entirely my own and should be read as such. Any opinions, news, research, analyses, prices, or other information contained in this report are provided as general market commentary, and does not constitute investment advice. I will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Thursday, 5 June 2014

Trading Technique

The 15min EURUSD chart looks a bit stretched at present but it will start to look more in proportion once this spike gets off the page. But I thought it would be useful to share my entry technique, albeit just part of it, given my multi-time frame/discretionary approach. I am using a 2hr Bollinger band on a 30bar setting, with a 2&2.25 SD bands. (you need to adjust the bars to suit your trading timeframe = 240 bars on a 15min chart (120mins x 30 / 15mins = 240bars)).The brown outside band is the same Bollinger but with a 3Sd setting. The basic concept is to count an 'abc' wave into either the lower or upper band, looking for a move above the 2/2.25SD band. Entry is then put inside the band whilst price is outside, allowing price action to take you into the trade,as it returns. The stop is placed above the high prior to the entry or above the 3SD band as appropriate. Attempting to take entries in line with the 25day & 50day MA cross is key. I am also looking for the 1-4hr momentum study to nest in either overbought/oversold along with confirmation of my OBV MACD, by crossing the zero line. Nothing is perfect, but aligned with my Fibos, Hurst & EW counts, it seems to work. Might be worth building into your trading plan.

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