Originally Posted by
oracle
July 5, 2011.
Strategy # BR/S #
Currencies Pairs: All
Frame: H1 and/or H4
All traders have to know two important points in trading:
1. Buyers are BIDding at a lower price.
2. Sellers are ASking for a high price.
Through those points is evident that profit is buying cheap and Selling at a high price, thus it should care too much about the entry of the peaks and/or bottoms.
1st Case: #BUY#
Look at the graphic time frame H1 and determine the last three Supports since a week.
Support1
Support2
Support3
The best accurate breakout level for BUYing trade at: (Support1 + Support2 + Support3)/3 + 0.0020
If the trend is strong to breakout 20pips the level that already found, it does mean: it'll continue and it's a good breakout trade and not a fake one.
Taking Profit:
We have to place Take Profit at 25pips below the top Resistance3.
Stop Loss:
The best location for placing Stop Loss is: 20pips below the last swing low.
Note: Take Profit = 5/3 * Stop Loss
Example:
If the Stop Loss is 75pips, then:
Take Profit = 5/3 * Stop Loss
Take Profit = 5/3 * 75pips
Take Profit = 125pips
Confirmation:
We Drag the Fibonacci from the Resistance3 to Support3, if our level is around 38.2% Fibonacci Retracement, it is a good convincing proof to BUY.