November 3, 2021 GBPJPY 4 HOUR 50 MA
I have been leaning towards a MA retest strategy that has been panning out pretty well these past few months.
Here is a setup from a trade last week. I primarily look for candles closing at the 4 hour closes and also around the 1 hour closes around the NY session open.
There are three MA's I use. The 20 MA (blue), 50 MA (red) and the 200 MA (gold). Not only does the candle have to close on the 20 or 50 MA but the moving averages must be lined up.
I use the 4 screen layout. The daily chart on the top left, 4 hour on the top right, 1 hour on the bottom left, and 15 min on the bottom right.
A) IF Price closes on the 4 hour 20 MA, I need price to also close on the 50 MA on the 1 hour, and the 200 MA on the 15 min. This is my Moving Average Correlation Strategy.
B) IF Price closes on the 4 hour 50 MA, I need price to also close on the 200 MA on the 1 hour.
C) IF Price closes on the 1 hour 20 MA, I need price to close on the 15 min 50 MA, and 5 min 200 MA.
D) IF Price closes on the 1 hour 50 MA, I need price to close on the 15 min 200 MA.
These are the primary correlations I use to trade. I also check the daily, but I find more setups with the above for IF, THEN criteria. Remember, the moving averages must be ALSO positioned correctly.
From here, I wait for a candle stick confirmation. I will either get in an engulfing candle on the 50 MA or the 200 MA.
TRADE ABOVE:
In the above chart, the 50 MA is above the 20 MA and price is in a downtrend. < This is how we would expect these 2 MAs to be positioned. I would not look for a short IF the 20 MA is above the 50 MA. Next is the Moving Average Correlation between timeframes.
When price closed at the 50 MA on the 4 hour, price ALSO closed on the 1 hour 200 MA matching scenario (B).
I traded this at the next 4 hour close showing an engulfing candle. 10 times out of 10 a RR of 4 typically hits, I close at Daily Resistance and Daily Support levels.
Does anyone else trade this way? Is this your first time seeing this? Please respond so I know I"m not the only one here. Looking for all of your feedback!
@MDFX_TRADES
Here is a setup from a trade last week. I primarily look for candles closing at the 4 hour closes and also around the 1 hour closes around the NY session open.
There are three MA's I use. The 20 MA (blue), 50 MA (red) and the 200 MA (gold). Not only does the candle have to close on the 20 or 50 MA but the moving averages must be lined up.
I use the 4 screen layout. The daily chart on the top left, 4 hour on the top right, 1 hour on the bottom left, and 15 min on the bottom right.
A) IF Price closes on the 4 hour 20 MA, I need price to also close on the 50 MA on the 1 hour, and the 200 MA on the 15 min. This is my Moving Average Correlation Strategy.
B) IF Price closes on the 4 hour 50 MA, I need price to also close on the 200 MA on the 1 hour.
C) IF Price closes on the 1 hour 20 MA, I need price to close on the 15 min 50 MA, and 5 min 200 MA.
D) IF Price closes on the 1 hour 50 MA, I need price to close on the 15 min 200 MA.
These are the primary correlations I use to trade. I also check the daily, but I find more setups with the above for IF, THEN criteria. Remember, the moving averages must be ALSO positioned correctly.
From here, I wait for a candle stick confirmation. I will either get in an engulfing candle on the 50 MA or the 200 MA.
TRADE ABOVE:
In the above chart, the 50 MA is above the 20 MA and price is in a downtrend. < This is how we would expect these 2 MAs to be positioned. I would not look for a short IF the 20 MA is above the 50 MA. Next is the Moving Average Correlation between timeframes.
When price closed at the 50 MA on the 4 hour, price ALSO closed on the 1 hour 200 MA matching scenario (B).
I traded this at the next 4 hour close showing an engulfing candle. 10 times out of 10 a RR of 4 typically hits, I close at Daily Resistance and Daily Support levels.
Does anyone else trade this way? Is this your first time seeing this? Please respond so I know I"m not the only one here. Looking for all of your feedback!
@MDFX_TRADES