Trading Sort:
Congestion Entry
Definitions:
1. Trend - relies on the traditional HH HL or LL LH. Heres a link to understand price action tendency. http://www.tradeology.com/priceaction.html
2. Direction - the current bar closes under or over the previous bar highest high or lowest low.
Greater Time Frame Rules:
Rule 1 Identify the trend based on a greater beginning time frame that's also a multiple of a lesser time frame of 4 or 5. Starting time is concerned, past month's ending, beginning of the year, past week's receptive, etc.. . The idea is to pick 1 time and apply the price at the time as your benchmark price to determine whether the current trend is down or up.
Rule 2 Next pub shuts within preceding bars range, this is congestion entrance.
Rule 3 mark the highest high and lowest low of these two bars.
Rule 4 switch to your lower time frame a number of
Lower Time Frame Rules:
Rule 5 identify the next close lower compared to the previoous bars reduced and place entry.
Rule 6 Set stop loss in the highest high of previous bars.
Profit taking is up to your own discretion.Ideas welcome.
Graph: * I will upgrade charts later based on the rule 1.
This example relies on the market and the inverse is true for entering long any trade.
Goal:
to produce this trade as profitable as possible with the smallest amount of risk.In other words create a top P/L multiple.
Note:
Any hints about how best to improve on this notion will be updated with this very first article to make it a lot easier to find for people who have an interest.