I'd like to share a method which I personally find viewing the market in this perspective easier to make money... its very powerful in my opinion since its all about trading with the trend...
INTRO: I am personally sick and tired of threads says "easy scalping, simple system, etc." and guess what.. they want me to add 3 weird indicators to MT4 and enter when a dot does this.. and a cross of the wacky blob v12 indicator.. ok you get the point.
Here I'll use just canlde-sticks and a variation called Heikin-Ashi (dont get scared away) it is a smoothed out version of the candle sticks.. most brokers have these as an option to view price movement.. if Heikin-Ashi is new to you.. you'll probably love them so bear with me.
I'll share the method now.. but please read the outro before commenting
METHOD: The numbers refer to the pictures.. follow it like a picture book
Basically Heikin-Ashi is the heart of this method and you can pretty much ignore trend lines and every indicator in the book(when using it like this).
Setup: 30M, 5M, and 1M Heikin-Ashi charts.. and a 1M candlestick chart.
Step by Step Live Trade... (this is a short trade.. reverse for long)
1.) Check the last closed 30M Heikin-Ashi bar.. its red.. so were looking for a short trade. (In picture #1, I should have drawn my arrow to the candle behind where I drew... sorry, I drew my arrow to the active candle.. when I should have drawn to closed candle.)
2.) Wait for 5M Heikin-Ashi bar to turn red.. when it turns red do this: walk a limit sell 1 pip below the 1M candle-sticks until its triggered... if price moves down it triggers and your in.. and if its in a mini pullback you get a better price(as it retraces you'll need to check to see if 30M and 5M Heikin-Ashi still are red.. else close order)
3) Make money.. my trade was a 10 pip stoploss with 20 pip take profit.. I made my 20 pips..
4) our emergency exit is when the 1M turns green.. in this trade we got our take profit of 20 pips before the 1M turned green.. you could use 2 lots and let the second run until this single if you wanted..
OUTRO: HA( aka Heikin-Ashi) will keep you trading with the trend and makes things a lot easier to see so I hope you like it.
Heikin-Ashi works best on small time frames.. even 30M is pushing it so don't use it on 4 hours and such.
and please don't go adding a million indicators to this method.. its simple trend trading stuff.. your only hurting yourself if you add 3 lagging indicators.
Hope you like this method.. help redefine better entires and exits and we can have a nice easy on the eyes trading method..
PS: oh yeah and you can scalp against the 30M direction when the 5M turns green.. but thats more advanced stuff.. just aim for smaller profits in that situation
PSS: it helps to know how to look at Heikin-Ashi candles (just to know a weak one from a strong) so I added a PDF I found. If a 30M has a weak candle than just scalp some small pips on 5M signals and such.. like I said this is first draft we can refine things later
View post 102 to see some price action without HA.. its a little more advanced if you are interested
http://www.forexfactory.com/showpost...&postcount=102
and 108 is a follow up on 102..
http://www.forexfactory.com/showpost...&postcount=108
INTRO: I am personally sick and tired of threads says "easy scalping, simple system, etc." and guess what.. they want me to add 3 weird indicators to MT4 and enter when a dot does this.. and a cross of the wacky blob v12 indicator.. ok you get the point.
Here I'll use just canlde-sticks and a variation called Heikin-Ashi (dont get scared away) it is a smoothed out version of the candle sticks.. most brokers have these as an option to view price movement.. if Heikin-Ashi is new to you.. you'll probably love them so bear with me.
I'll share the method now.. but please read the outro before commenting
METHOD: The numbers refer to the pictures.. follow it like a picture book
Basically Heikin-Ashi is the heart of this method and you can pretty much ignore trend lines and every indicator in the book(when using it like this).
Setup: 30M, 5M, and 1M Heikin-Ashi charts.. and a 1M candlestick chart.
Step by Step Live Trade... (this is a short trade.. reverse for long)
1.) Check the last closed 30M Heikin-Ashi bar.. its red.. so were looking for a short trade. (In picture #1, I should have drawn my arrow to the candle behind where I drew... sorry, I drew my arrow to the active candle.. when I should have drawn to closed candle.)
2.) Wait for 5M Heikin-Ashi bar to turn red.. when it turns red do this: walk a limit sell 1 pip below the 1M candle-sticks until its triggered... if price moves down it triggers and your in.. and if its in a mini pullback you get a better price(as it retraces you'll need to check to see if 30M and 5M Heikin-Ashi still are red.. else close order)
3) Make money.. my trade was a 10 pip stoploss with 20 pip take profit.. I made my 20 pips..
4) our emergency exit is when the 1M turns green.. in this trade we got our take profit of 20 pips before the 1M turned green.. you could use 2 lots and let the second run until this single if you wanted..
OUTRO: HA( aka Heikin-Ashi) will keep you trading with the trend and makes things a lot easier to see so I hope you like it.
Heikin-Ashi works best on small time frames.. even 30M is pushing it so don't use it on 4 hours and such.
and please don't go adding a million indicators to this method.. its simple trend trading stuff.. your only hurting yourself if you add 3 lagging indicators.
Hope you like this method.. help redefine better entires and exits and we can have a nice easy on the eyes trading method..
PS: oh yeah and you can scalp against the 30M direction when the 5M turns green.. but thats more advanced stuff.. just aim for smaller profits in that situation
PSS: it helps to know how to look at Heikin-Ashi candles (just to know a weak one from a strong) so I added a PDF I found. If a 30M has a weak candle than just scalp some small pips on 5M signals and such.. like I said this is first draft we can refine things later
View post 102 to see some price action without HA.. its a little more advanced if you are interested
http://www.forexfactory.com/showpost...&postcount=102
and 108 is a follow up on 102..
http://www.forexfactory.com/showpost...&postcount=108
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What Is Heikin-Ashi.pdf
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