I now mainly trade (3) types of setups. Trending, Range and Pattern. This is an example of how I scan for price action that is currently in a Range. Each day I scan through about 19 Pairs that I trade and this 4-View option allows me to scan the Daily, 240M, 60M and 15M all in one glance. What's great about this example is there are 3 of the 4 times frames with a valid "Range Setup."
My rules for determining if a Valid Range exists are as follows:
1. 4 opposite alternating touch points on support and resistance lines creating a sideways channel.
2. Once the 4th touch point is established, a trade can now be entered on that 4th test and bounce.
3. Depending on the time frame, I have a minimum channel width to enter the trade to create an acceptable risk to reward ratio:
Daily - 240 PIPS
240 M - 120 PIPS
60 M - 60 PIPS
4. I generally don't trade ranges on the 15M chart. I like this lay out, so I include it for that reason.
5. I create an "entry zone" just inside and outside the S/R lines. You can choose how many pips your comfortable with risking and draw that zone in.
I use Heikin Ashi candles because of the ease of identifying trends and reversals, etc. But it will work fine with standard Japanese Candlesticks as well.
Comments
kate25
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Nice chart Dale I was thinking I at least needed a minimum of two different timeframes
Dale_Ansel
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Yes, I like to view at least 3 time frames. This gives a "Fractal" view of the market and shows different
setups on different time frames for the same pair. Depending on how much time I have, I may trade the
lower time frame so I can get in and out quickly. Or if I have quite a bit of time, I may choose the Daily
or 4H chart setup.