Charlieab94
Education

A SIMPLE DAY TRADING STRATEGY - GBPUSD *Learn to trade*

FX:GBPUSD   British Pound / U.S. Dollar
Here is a simple day trade that I would have taken if I was not already shorting GBPUSD from the gap open on Sunday evening (linked). This day trade is very simple and utilises a few key rules for the analysis.

Criteria for a successful short trade:

1) Trend must be clearly bearish (lower highs marked in yellow).
2) Price must be below daily pivot and retest.
3) Price is below 200ema
4) RSI showing as overbought
4) Bearish wick rejection candle rejecting daily pivot

Where to place stop loss:

I place my stop loss 10 pips above the current highs. So in this case, the current highs were of this candlestick that tested and rejected the daily pivot level. Therefore my stop loss is placed at 1.32085

Where do I take profit:

Normally I aim for the daily S1 level when going short or the daily R1 level if I am going long. However, there is always the opportunity to gain extra profit if there is strong momentum in the market. If price breaks through the S1 level with heavy momentum and closes below that level then I will target the daily S2 level next.

To be safe, I will then move my stop loss to entry price at this point to remove any exposure from the trade.

I hope this little trade set up and explanation helps. It is a nice and simple strategy for anyone looking to start trading.

I have written full trading strategy guide on how to day trade using a simple and effective strategy on the 15 minute timeframe. The full guide can be bought on Amazon by going to the link below:

https://www.amazon.co.uk/Learn-Day-Trade...
I post analysis and trading techniques on my personal blog... feel free to take a look

https://diaryofafinancekid.wordpress.com
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Message me if you want to learn more about day trading like this.
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