Daily breakout method (opening price)
Here is what I do...
Pair: G/J (
Pound/Yen)
Time Frame: 15min time frame with the Par Sar added (step= 0.01, max= 0.1 & precision= 7)
** this will help with the confirmation of the trend.
1. Find opening price of the daily candle. (00:00 GMT time)
Check to see what Average Daily Range is expected.
*
If daily range is less than 200 for Pound/ Yen - i would find something else to do, that would be a slow day for this Pair.
2. Place entry marks (alarms) +30/-30 of that price. (
Straddle)
You might have to make some slight adjustments – support and resistance levels have higher priority.
*Be mindful of support and resistance levels too.
*Do not trade News events (no entries 1 hour before and no entries one hour after.
Wait for price action to settle... etc...
3.
Wait -
yes, you wait - go do something... go live your life, do the dishes, take out the garbage, read a fraking book, play some videos games, go back to bed and sleep. I do not care what you do, but...when alarm is triggered come back to your comp and analyze your charts.
* note - high volume times - you will find that the most successful trades will come around 06:00 GMT time (which market opens around that time? ), but not always.
4. Enter (1) trade only... one trade cancels the other...
I only follow the trade with the forming of the current daily candle @ time of entry.
(Multi Time Frame Stuff) …so if the daily candle is looking like bull candle @ the time of trigger then I would enter with a bull trade... etc…
5.
Tp set for 50 PIPS, but it can be actively managed for more.
Stop Loss of 40, if you start to see that the price is thinking about coming back over the daily open price (a sort of support and/or resistance line) then that might be an indication of an exit.
That’s it
P.s - here is a link to a picture to see stuff in action.
http://i67.photobucket.com/albums/h3...lebreakjpg.png
Some stuff you might want to add to your MT4 charts - see below