Michael_Harding

What's Your Consolidation Trade Strategy?

FX:NZDCHF   New Zealand Dollar/Swiss Franc
Unless you're me, you likely won't understand this strategy but give it an attempt and try to follow me on this and thank me later cause this plan is very likely to work out ;)

So obviously this pair will continue to consolidate until either a close above or below happens in the red or blue areas highlighted on the chart.

With that said, for now we need a consolidation trade strategy or fuck it don't even trade this pair. Ya?? Quit being a coward and let's go!

So what's the consolidation trade plan/strategy?

Well..... hmmm.... we can take the current range and look to enter with reduced lots. That's not a bad idea. Meaning if we normally trade 1.00 lots per trade, let's reduce this bitch all the way down to 0.1 and scale this puppy on both long and short sides from the mid range pivot.

Kinda like a grid style approach. Now question is.. "how much should we space out each position in this "GRID"? hmmmm

Let's see.... Mid range pivot is at 5380 with the bottom of the range at 5345 and top side at 5407

So basically 27 pips up and 35 pips down.

Say we enter with a sell now and it climbs up 10 pips, we could add another sell there and then a third potion if it climbs up 20 pips from the current sell.

Noting the wicks on the tops of the most recent candlessss suggests selling pressure which is why I'm more inclined to sell this puppy.

But if PA (Price Action) breaks above the most recent wicks (on the chart) with a closed candle, then I would reconsider that my idea is likely to be bad idea and cut my losses. :(
Let me simplify that... In other words.. if we get a close above the 200 SMA.. I'm outski.

But what if I'm right.. hmm how long do I hold onto this bad boy? I'm a greedy motha F. Kidding actually a 20 pip target is good for me. ;) Wham bam thank you Mam! Let's go!

And since we're still in consolidation, I'll be hedging longs at my targets (every 10 pips)







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