Time & Price Strategy (Box Breakouts) rules:
1) If scalping and/or day trading
2) Use Forex pairs with high ATRs or over 90, now GBP and EUR pairs
3) Use hourly charts
4) Use Naked charts (only price action on them)
5) Add vertical lines every 4 hours from session open . Chart is 2pm, 6pm, 10pm, 2am, 6am & 10am. (Every 4 hours- from beginning of new session)
Chart look at smiley faces as times you should and should not trade r/t liquidity and volatility- red not trade, yellow maybe and green trade.
6) Add horizontal lines every 12.5 pips or as follows: 000, 125, 250, 375, 500, 625, 750, 875, so EIGHT lines. Example: 1.58125 as on chart.
The above will give you boxes of both 4 hour times (vertically) and 12.5 pips (horizontal).
Example hourly chart of EURAUD, on Friday gave you four possible trades to enter, place stops and exit with a profit. Three bullish and one bearish trade.
1) Trade with trend, momentum, support and resistance or breakout
2) Once price action hits or breakouts a box, then enter with stop at other end of box, three bullish trades use lower end of box for stop losses.
3) one bearish trade use upper end of box for stop loss.
KEEP TRADING SIMPLE- you do not need to complicate Forex trading. Focus on price action, trends, momentum, support and resistance & risk management. Best times to trade everyday is in-between Tokyo end to London end related to high liquidity and high volatility.
1) If scalping and/or day trading
2) Use Forex pairs with high ATRs or over 90, now GBP and EUR pairs
3) Use hourly charts
4) Use Naked charts (only price action on them)
5) Add vertical lines every 4 hours from session open . Chart is 2pm, 6pm, 10pm, 2am, 6am & 10am. (Every 4 hours- from beginning of new session)
Chart look at smiley faces as times you should and should not trade r/t liquidity and volatility- red not trade, yellow maybe and green trade.
6) Add horizontal lines every 12.5 pips or as follows: 000, 125, 250, 375, 500, 625, 750, 875, so EIGHT lines. Example: 1.58125 as on chart.
The above will give you boxes of both 4 hour times (vertically) and 12.5 pips (horizontal).
Example hourly chart of EURAUD, on Friday gave you four possible trades to enter, place stops and exit with a profit. Three bullish and one bearish trade.
1) Trade with trend, momentum, support and resistance or breakout
2) Once price action hits or breakouts a box, then enter with stop at other end of box, three bullish trades use lower end of box for stop losses.
3) one bearish trade use upper end of box for stop loss.
KEEP TRADING SIMPLE- you do not need to complicate Forex trading. Focus on price action, trends, momentum, support and resistance & risk management. Best times to trade everyday is in-between Tokyo end to London end related to high liquidity and high volatility.