1. Position size and risk management.
- 2-5% of account per trade. Take that amount and split it into thirds and there are your 3 entries. place them within a
15 pip spread within your target zone, so it averages out your entry. Never use more than this even if you "KNOW" the price will move a certain way and you can make more. Dont do it. Dont.
2. Finding the trade.
- Use split charts. On the left you should use Heiken ashi candles. Bollinger bands (defaults). 9 and 26 ema.
-On the right you use renko charts 5m chart with 5 pips per tick. You only indicator is the Ichi cloud with settings 18,52,104,26
- Look at all the major currency pairs that your broker allows you to trade and pull up the daily chart on the left panel. What is the color of yesterdays daily candle? That is the direction that the market will move today, 80% of the time during a strong trend. So speaking of trends, this method only works on very strong daily trends. The color of the previous day's HA candle is the direction of your trade.
- Now look at the renko chart with the cloud.
Are the candles above the cloud? Your only position should be long or neutral.
Are the candles below the cloud? Your only position should be short or neutral.
Are the candles inside the cloud? Be careful. If the trend is strong this is either a bull or bear trap and not a sign to reverse your position, but a very very good entry :)
Now what we want to do is look for patterns. I looked through this chart with a strong trend EURGBP. I look for places where I could say, "I wish I could have gotten in on that trade." Study everything about this part of the chart. Maybe you will notice that every perfect entry is when the renko bars turn red for the first time while between the red and blue lines, near/inside the cloud!
Happy trading ;)
- 2-5% of account per trade. Take that amount and split it into thirds and there are your 3 entries. place them within a
15 pip spread within your target zone, so it averages out your entry. Never use more than this even if you "KNOW" the price will move a certain way and you can make more. Dont do it. Dont.
2. Finding the trade.
- Use split charts. On the left you should use Heiken ashi candles. Bollinger bands (defaults). 9 and 26 ema.
-On the right you use renko charts 5m chart with 5 pips per tick. You only indicator is the Ichi cloud with settings 18,52,104,26
- Look at all the major currency pairs that your broker allows you to trade and pull up the daily chart on the left panel. What is the color of yesterdays daily candle? That is the direction that the market will move today, 80% of the time during a strong trend. So speaking of trends, this method only works on very strong daily trends. The color of the previous day's HA candle is the direction of your trade.
- Now look at the renko chart with the cloud.
Are the candles above the cloud? Your only position should be long or neutral.
Are the candles below the cloud? Your only position should be short or neutral.
Are the candles inside the cloud? Be careful. If the trend is strong this is either a bull or bear trap and not a sign to reverse your position, but a very very good entry :)
Now what we want to do is look for patterns. I looked through this chart with a strong trend EURGBP. I look for places where I could say, "I wish I could have gotten in on that trade." Study everything about this part of the chart. Maybe you will notice that every perfect entry is when the renko bars turn red for the first time while between the red and blue lines, near/inside the cloud!
Happy trading ;)