Have you ever heard the expression that less is more? This is true in many cases but especially in forex. I have found a very profitable long term strategy using point and figure charts. Here are the rules for the system.
Buy at one box above the starting point of the first box in a downtrend
Sell at one box below the starting point of the first box in an uptrend.
A trend is defined as 10 or more boxes in the same direction.
Stop loss is when you get a signal in the opposite direction. Alternatively stop loss could be placed near support or resistance on a candlestick chart
Use the system on EUR/USD
Example
Sell at the red horizontal line which is one box below the starting point of the first box in the current uptrend.
http://img27.imageshack.us/img27/878/unavngivetaqz.jpg
Take profit when you are satisfied with your profit. Don't be greedy.
http://img27.imageshack.us/img27/29/unavngivetr.jpg
What do you think about this strategy? I don't have the exact figures but I think it is profitable in about 90 % of the trades. the problem is when to take a profit. I don't have exact rules for that. The indicator I use is attached in this post.
Edit: Before you ask any questions please read all the posts in the thread. I don't like repeating myself again and again.
Buy at one box above the starting point of the first box in a downtrend
Sell at one box below the starting point of the first box in an uptrend.
A trend is defined as 10 or more boxes in the same direction.
Stop loss is when you get a signal in the opposite direction. Alternatively stop loss could be placed near support or resistance on a candlestick chart
Use the system on EUR/USD
Example
Sell at the red horizontal line which is one box below the starting point of the first box in the current uptrend.
http://img27.imageshack.us/img27/878/unavngivetaqz.jpg
Take profit when you are satisfied with your profit. Don't be greedy.
http://img27.imageshack.us/img27/29/unavngivetr.jpg
What do you think about this strategy? I don't have the exact figures but I think it is profitable in about 90 % of the trades. the problem is when to take a profit. I don't have exact rules for that. The indicator I use is attached in this post.
Edit: Before you ask any questions please read all the posts in the thread. I don't like repeating myself again and again.
Attached File(s)
PointAndFigure.ex4
7 KB
|
1,791 downloads
PointAndFigure.mq4
7 KB
|
2,128 downloads
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