First, I should point out that there is nothing radical in what I do to trade currencies. There is no magic to be successful; just patience, training and hard work. The stories of quick wins and easy money really are fantasy!
When do I trade?
I Trade from 07:00 to around 15:00 UK Time. I rarely place trades before 08:00, when London officially opens. I won’t place trades overnight; I will close trades before New York closes. I am an intraday trader.
What Do I Trade?
I trade really just 3 USD crosses : EURUSD, GBPUSD and AUDUSD and the JPY crosses of the same. Not at the same time but look for the best setups on each pair each day. I trade just 6 as it keeps me focused Moving over many pairs quickly is no way to get a good handle on what is happening deeply.
How Do I Trade?
I look at Weekly > Daily > 4H > 1H > 30M, Charts
I use the higher timeframes to make my trend lines and horizontal price support lines.
I use the 4H and 30m to trigger my trades from
What Indicators Do I use?
I use candlestick charting and I like to keep my charts clean with just useful unique information.
1) Trend lines from 1W/1D/4H
2) Horizontal Lines of price support
3) Daily, Weekly and Monthly Pivot Lines
4) Half an eye on MACD – just as a double check for Divergence (you can see it from Price action anyway)
What is my trade strategy?
I use a combination of a few and all based around bounces or breakouts of price action…..and candlestick and pattern formations.
1) 1-2-3 Snapper Trade over Important Areas of price Action
Here I like to see the price swing over a Daily Pivot or Major Price Support/Resistance area. I will then take a trade in the direction of the major (4H) trend.
2) Pull Backs
If I miss the action from 1) above then I will wait for the price to take its course without me and then wait for the pull back to a point of support/resistance with the right candle patterns to like a reversal bar of somekind.
I like to trade for 1:1 Risk: Reward. So if I risk 30pips I am targeting 30pips minimum return. That means if the logical stoploss is 60pips away, I won’t take the trade. If the logical target price is less than 1:1 distance then I won’t take the trade.
Look at some of my many trades pictures I have on this blog to get an idea.