A profitable strategy for short term trading!!

The only tools we are going to use are resistance and support Lines, trendlines , EMA 10 and EMA 20.

The strategy step by step is the following:

1) In the 4hour chart we draw the support and resistance Lines of major levels. We also get an idea of the intraday trend.
2)Then, we are going lower to 1 hour chart. We try now to draw channels or trendlines . Again we are looking the trend. 4 hour and 1 hour should be the same.
3)We are moving forward to 15min chart. Here is the ''game''. We have obtain the short term-intraday trend from the previous timeframes. We are now looking for retracement moves. As we find them we are waiting for a strong candle. In our chart we can see that after a retracement, doesn't matter how big it is, the price go over the EMAs Due to our bearish trend we would place our short positios as soon as a strong bearish candle appears. By the term ''strong'' i mean a candle whose body is bigger than the last bullish candle (the more bullish candles it ''eat'' the better). This is the 1st condition to put a Trade. The second is the strong bearish candle to cross downwards the EMAs. I mean to close below them.

So pay attention on the 2 conditions that exists in that strategy. In the Top of the graph we can see an incorrect entry bar. Although the price go lower it is not as safe as the way i described above.

Trading is somtimes very simple. You do not need any indicator. And don't forget. The simpliest is the best!!!!
I am waiting your comment.....
Thank you for reading....
t love your strategy.. excellent.. would you please explain how to read the bottom and when the reversal takes place? will the rose colored rising line start the uptrend?
and how to see this beginning of the down trend?
The beginning of the trend is shown in the 4hour chart. You watch the very last candles because in the 15min chart these are the ones you are interested. Then in the 1hour chart it is clearly. I did not understand your first question. Please make it more clear. Thank you.
aryahi29 PRO KN_FXtrader
KN_fx TRADER.. the queation is aimed at me? my 2nd question is as to how to predict the start of reversal of the tren as it appears to be happening just now..strating at 1.1178
Yeah its simple to trade let observe
Thank You for sharing this sir. I have been using this strategy for quite some time and i must say its impressive. I supplement the strategy with RSI set to default (14). I add a 50 level to the 70 (overbought) and 30 (oversold) levels on the RSI. My entry rules are: enter long in rising channel or trendline when EMA crossover occurs and the RSI is above the 50 level/mark. Enter short when EMA crossover occurs and RSI is below the 50 mark. Entry only on 15Min TF.
This gives me an opportunity to add on to winning trades and maximize gains. However, i feel that i do not have a clear exit strategy for this and i end up losing some pips in the end. Can you please illustrate your exit strategy for the trades?? Thank You sir.
aryahi29 PRO Josphat89
i'm expecting this reversal of tren to go as high as 1.1368 in stage 1 and then up to 1.1652 approximately.
my initial advice is not to follow downward trendl lines any more.. it ended today
+1 Reply
there are some predictions stating that this uptrend may stop at 1.1310 so you need to be cautious at 1.1310 and 1.1368, and if it exceeds 1.1368.. could top 1.1652 or even more
in short, if the pl exceeds the current top trend line,, my prediction holds good.. and i expect it exceed the top trend line this time..
How much back should we start plotting the support and resistance level? for instance like 1 month or 3 months or more?
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