Many people have asked me how to have the longer, often more profitable transactions. It happens to many uswe get trapped in trading little time frames that we miss the larger chances. I have devised a set of objective rules that lots of successful traders follow and would like to take the opportunity to share it with you. It's founded on three measures, alert, confirm and enter.
If you have some constructive criticisms, suggestions or questions, I would love to hear from you. You may email me at.
SETUP
As its name suggeststhis egy simply requires the 1hr chart. I'm using same template that I have discussed in my own thread. However, you can set it up using the next configurations:
Moving Averages (MA):
Simple 80
Simple 200
CCIs: 21 84 with 0 as a level.
Step 1- Alert
Look for the cross of the two moving averages. If they cross, you are simply seeking to take a position in the direction of the 80ma. So if the cross has occurred along with the 80 is above the 200, you are simply looking to get a long.
Step 2- Confirmation
The 84 CCI has to maintain positive if you are looking for a long and in negative if you are looking for a short.
Step 3- Enter
Wait for the 21 CCI to split the 0 level in the opposite direction which you plan to take a position. Then as it divides the 0 level again in the direction you are seeking to take a position, you enter.
Stop Loss Amount:
Your stop loss should be above/below the substantial high/low on the exact same 1 hour chart. Ideally, this should be above/below the cross of the moving averages.
Exit:
Exiting a trade is a more personal thing. Based on this egy you would exit the trade when three candles shut above/below the 80 ma.
Cases 1
Can I propose opening the”threestep-no trade” chart which is attached.
1 Alert- You can see that we had the cross of the moving averages, so you would be looking for a long position. (1st vertical line)
two Confirmation- Please note that the 84 CCI has broken down under the 0 line (2nd vertical line). Thus you would not be seeking to continue. The 84 CCI MUST be positive for a long haul.
3 Entry- Hopefully you will be thinking”what entry”, precisely, there is no entrance here. Start again.
Example 2
Gently open the 2nd chart”threesteptrade”.
1 Alert. You may see that we have had the cross of the moving averages (1st vertical line). What are you seeking to trade? I hope you are going to be shouting”short”. Fantastic stuff.
2. Confirmation- the 84 CCI remains negative.
3. Entry -- The 2nd vertical line shows where the 21 CCI breaks into positive and then falls bellow the 0 line and that is your entrance at 108.70. (break of the support line was a potential entry if you're quick)
Stop Loss- in 112
Exit- you would still be holding this trade as three candles haven't closed above your 80 ma.
Back test it and allow me to know what you think.
Regards,
Hemal