How to trade Daily Charts
This is a copy and paste of the best ever post about trading pure price action that I have ever read.
Pull up your daily eur/jpy chart and follow Strats description of how he traded it. PRICELESS.
I personally have switched to trading the daily, weekly and monthly timeframes initially because I wanted to spend less time in front of the screen but now I am seeing my profitability increase in leaps and bounds. Try it, you will never regret it.
I wasn’t going to post this as it smacks of ego but it answers many of the questions I get like, “what’s the difference between you and other Price Action/Support and Resistance traders/threads?” etc., etc. This is a shining example of my method, my style of using Price Action/Support and Resistance plus other tools from my toolbox. It is not classic Price Action and I never pretended it was but it works for me and that is all that matters. My style is to look for long runs, I’m not interested in one or two day scalps. So……………………..
I don’t know whether it is still going up BUT it stopped ME going up. Dr. Joe said my last buy would be a loser, which it is, so, STOP BUYING!
Classic hammer Jan21 – Buy Stop above high – not filled (Price below 20 and still steep down slope –see arrow)
IB – Jan 22 – Buy Stop above high – not filled
Neutral doji – Jan 23 – Buy Stop above high – not filled
Bullish IB – Jan 25 – Buy Stop above high –filled
Weak shooting star – Jan 28 – SL below low – stopped out (20 still sloping down)
The Animals are singing “The House of The Rising Sun” followed by the Stones’ singing “Honky Tonk Woman”.
BUOB & HL – Feb 02 – Buy Stop above high – filled
Price closed above 20 – Feb 06 – Bullish – 20 goes flat – see arrow
Bearish Bar (Dark Cloud Cover) – possible double top – SL below low – stopped out
Made HH inside coil
BUOB & HL – Feb 12 – another close above 20 – Buy Stop above high – filled
SL below Feb 12 higher low
Feb 17 – Potential higher low forming coil base line – Buy Stop above 20 – filled
Bullish bar on Feb 18 confirms higher low – price closes above 20 – SL for both orders below swing low
Feb 20 – bullish bar breaks out of coil – Min target = 940 pips – IB – Buy stop above high – filled – 20 turning up – see arrow
Something is happening – Sting is singing “Every Breath You Take”
Feb 22 – price closes above 50 – bullish
Feb 24 – Huge bar – TL drawn
Feb 25 – 20 crosses above 50 – bullish
Feb 27 – Stopped out at TL – Boss 20 coincidence?
March 03 confirms March 02 HL
March 04 – Strong close above BOSS 20 (and you thought you were strong – huh!)
March 05 – Buy stop above highs of consolidation for break out
Feb 27 to March 11 consolidation – flag pattern – Beatles are singing “Nowhere Man”
March 12 – BUOB – buy stop above high – filled – SL below low – 20 is supporting prices
We’re in FAT CITY – throw away all rule books – Everly Brothers keep on singing “BYE BYE LOVE”
March 15 – hammer type bar – buy stop above high – filled – SL below low
March 19 – neutral doji IB – buy stop above high – filled – SL below low
March 20 – TL drawn
March 24 – Strong bearish bar – almost a BEOB – is something wrong? The Beatles are singing “You’re Gonna Lose That Girl”.
March 25 – hammer type bar – buy stop above high – filled – SL below low – I think I hear John Lennon singing in the background “I’m a Loser”
March 27 – Open up charts to hear Roy Orbison singing “IT’S OVER”
March 27 – stopped out (small loss on last trade) BUT close still above 20
Now I’m singing Roy Orbison’s “Crying”.
Strat is a trading legend and he teaches how to trade the daily timeframe and upwards for FREE on his forexfactory thread here
I personally learned how to trade across all time frames with the help of the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.
They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.
The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.
Click Here to get a FREE days entry into the fx500 club live trading room
Always Remember.
Keep your risk as a percentage of your capital low (1%), equals stress free trading.
Always work out potential losses before potential profits.
We are paid to take risks, if you aren’t in a trade you cannot win a trade!!
Buy off support and sell off resistance.
Bank partial profits early and move your stop loss to break even as soon as you can.
Click Here to get a FREE days entry into the fx500 club live trading room