KOG - Simple Trading Strategy Simple Trading Strategy - Generate your own take profit targets.
Today we're going to share with you a simple yet effective trading strategy that can be used on any instrument. Like any other trading strategy its not 100%, but, you can see from that illustration how effective it can be in keeping you in the right direction on a pair. You can add Moving averages to this as well as which ever indicators you prefer to use and fine tune the strategy to make it work for you. We must stress, with this strategy you have to have a confident ability in charting and have an understanding of support and resistance levels as well as key zones and regions of liquidity.
The bonus with the strategy is it can be applied to all time frames, it can be used to swing trade on longer time frames and to scalp on short time frames. So when we publish our daily morning reviews with our levels and say "LEVEL TO LEVEL" trading, this strategy gives you an idea of what we're suggesting. Also, when we share our 15M levels and zones you can apply this strategy to trade your way up or down to the target.
So lets begin:
1) Start with the 4H chart
2) Look for price action where the price was previously in the same range
3) Use the highs and the lows of swings to plot your support and resistance lines
4) Switch to the 1hr chart
5) You are looking for candle body closes above or below the support or resistance lines. The bigger the candle body close the more accurate the target above is.
We can use this strategy to take numerous trades in up and down until the target level is reached.
This strategy also helps you with your entries and exits. Once you plot the lines and see the price is in between two lines of support and resistance, you will know not to enter a trade. Wait for the pull back on the smaller timeframe or for your chosen indicator to give you the signal!!
NOTE:
• Lines can never be accurate but try to get them as precise as possible
• You must update your lines daily as support and resistance levels change
• You must have a risk strategy in place. On most occasions there will be a pullback or retracement on price which can put you in drawdown.
• Money and risk management are priority when using this strategy.
• Nothing is 100% but once you add the Excalibur target to the chart you have clearer idea of direction.
ALWAYS REMEMBER:
MAs and indicators are lagging, when using this strategy try to keep it simple and clean. Basic support and resistance levels along with a decent candle body close.
Try it, backtest it, apply it. Let us know your findings.
As always, trade safe.
KOG
