I have adapted my strategy slightly here. This time my stop order is only 5 pips below my opening candlestick. My target is still rather conservative at 1%, but this will allow me to accumulate trades later and increase the overall profit from this original trade. Target =1561.1 Entry =1551.8 Stop order = 1539.3
To practice find multiple entries, I selected Dec 2019 to find multiple possible trades using my current strategies. By looking at the charts only 4 out of 6 trades would have been successful. This would not have been good enough; a change to my strategy is needed to get my success rate increased. Trades 2-5 could have been cumulative thereby making 4% from a...
Entry = 13232.82 Stop order 1/3rd below entry 13211.60 Target = 13394.12
Entry =1.3116 Stop Order = 1.3097 Target (1%) = 1.3288
Entry = 1.2934 Stop Order 1.2924 Target (1%)= 1.3102 **from now on I may change my target in accordance with how steep the trend line is. As the trend line moderately steep I may in future be more aggressive with my targets. A more flat trend line may mean I use a more conservative target (say between 0.5 and 1%). This is an area I will have to think about.
To find the stop order I measured the size of the engulfing candlestick (1325 pips) and divided by 3 as this the rule I use to identify what counts as a engulfing candlestick. The candlestick has to be at least 3 times as big as the previous candlestick. Therefore 1325 /3 = 441.6 pips below the candlestick. The stop order will therefore be 7241.9 The Entry will...
Entry 1467.9 Stop order 1465.8 Target (1%)= 1482.7 Target achieved Currently no other suitable candlesticks. I will have to find alternative strategies to entry.
Since the British election the price GBP has dropped below the pre election price high of 1.74448. Although there are signs of price increase with two engulfing candlesticks (which meet my criteria) which indicate a positive reversal of price decrease we have seen. I believe the sharpe upward trend we are starting to see will continue and as previously seen smash...
Target 3: Target 2 has now been achieved, the resistance line has been surpassed and is now the support line. A new resistance line has been created. A engulfing candlestick has also been identified which meets my basic requirements. Entry = 0.5114 Stop Order =0.5117 Target (1%)= 0.5171 As the trend is fairly stable at the moment a target of 1% seems fairly sensible.
Target 1: Stop order = 0.4936 Entry = 0.4943 Target (1%) = 0.5015 Target 2 : Stop order = 0.5047 Entry = 0.5050 Target (1%) = 0.5118
There are no suitable trades that meet my criteria within the short term. However, there are two suitable trades which would be long term trades. Entry 1: There is a 70pip gap between the first engulfing candlestick and the weekly support line. the entry price is 1.10157 The stop order will be 1/3 of this gap which will be 23pips 1.09916 The target will be 1 %...
This is an updated chart. Using the similar methods as before I used an engulfing candlestick to identify a suitable entry point. My entry point is 1.882, my stop loss is 33pips below the Doji which makes it 1.1828 and the target is 1% above the Doji, as I know the candlestick indicates a reversal. The distance between the Doji and the support line is 101pip....
I found an area of interest with a engulfing candlestick that met my criteria. The distance (gap) between the body and the support was 179pips; I divided this by 3 as the engulfing candlestick was 3 times the size of the previous candlestick. My stop order was therefore 59pips below the next candlestick (1.3099). My target was 1% above the candlestick price...
entry Point 1 (yellow area) black line indicates the entry point 1.08877 pink line indicates the stop loss 1.08837 brown line indicates the target which is the gap between body of the candlestick and the trend line (15.9) multiplied by 3. this is one of my criteria when defining a acceptable engulfing candlestick. 15.9 x 3 = 47.7. my target is my 47.7 pips....
Entry level 1.1668 Target (1%) 1.1771 Stop loss (0.5%) 1.1589
Firstly I used the weekly chart to find the Support and Resistance lines.I also identified engulfing candlesticks which met my criteria. I then repeated the process on the 4 hourly chart. Current price is 0.9127 Target is 91 pips (1%) = 0.9207 Stop Loss 9pips 0.9105
Entry price is 120.572 Stop loss - 120.387 Target (0.5%) 60.4 pips or 121.242
Notes to be added later.