I know a lot of people visit and read this thread. I will encourage you with this.
From my knowledge of this method, I will like readers to note:
Mondays--- markets are somewhat trying to set the tone for the week. most times mondays are directionless except some major fundamental news happened over the weekend.
Tue/wed/thurs --- market picks a direction and run with it. I follow market flows mainly on the 15m/ 30m TF. I also check the 4hrs and daily TF to be sure whether its running with trend or counter trend.
Fridays --- most trades in profit are booked and you'll notice some reversals towards london close.
Most of my major trades and profits are made middle week days.
Low values of ADX and LWMA agreement is what i look for. 3 trading days in a week is enough to yield desired profit and still complete the month on a positive note.
Remember 5% - 10% monthly profit is good to grow an account over time. NOTE that if one is consistent with monthly 10% from Jan to Dec, it is equivalent of multiplying your Jan starting balance by a factor of 3.
so if i start with $10,000 in January and conservatively trade only tues/ wed/ thurs each week and complete each month with 10% of monthly balance... i will end to year with about $31,300. It may not appear as much in some people's book. The idea is to be consistent and disciplned to follow the method. i sometimes struggle as well but my desire is to remain faithful with the method.
If you repeat same consistency and profitability the following year, you will likely end with 3X31,300 = $93,900. Now thats some money. if you repeat the same result the 3rd year... you are off to something great.
Hypothetical case of starting with a $500 account and how its likely to grow to something reasonable. I have learnt not to chase every trade (although the hard way).
Attached Image (click to enlarge)
My goal is to build consistency and patience. Take little profits here and there and achieve the 10% of previous month's balance. Law of compounding will make my account grow.
MONEY MANAGEMENT
PATIENCE
CONSISTENCY
i will be observing if this will pan out as expected but will be on the sidelines till tomorrow. No trading for me today... just observations when i have the time.
Hi so now i have everything? I just dont understand when to take entry. {image}
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Hi-Sandeens2,
please slowly read post 3 & 4 on page 1 of the thread. you will understand it by also observing price action during EU and NY sessions. it comes with practise.
you need to understand the consolidation zone and watch out for a break out from it... either on 15m or 30m TF.
The idea is
1. Find a compression zone when the LWMA in 15m/ 30m/ 60m TF have come together
2. look at ADX if its close to 12 or less
3. mark immediate range for the price and wait for a break out from the range.
4. Enter the trade in the direction of break out.
PATIENCE is Key in this method... (Sometimes i struggle to wait but the reward is there if one can master to wait and be patient)
The idea is
1. Find a compression zone when the LWMA in 15m/ 30m/ 60m TF have come together
2. look at ADX if its close to 12 or less
3. mark immediate range for the price and wait for a break out from the range.
4. Enter the trade in the direction of break out... (BUY or SELL)
Review these pairs and see if you could have spotted the breakouts.
Due to the fact i have achieved my target for the month, i had reduced my lot size considerably in today's trade in keeping with low trades after months target is met.
Attached Image (click to enlarge)
BOE Gov speech in 45mins will either send it further down or a complete reversal. Take what you can... maybe at round number of 1.2100
Time of trade is important and i wish to bring some important pivots to our notice
1. Start of Europe session
2. Europe lunch time/ start of NY session
3. close of Europe session/ NY lunch
4. close of NY session
5. Asian start
These are key timing that works with this method. Am available during Europe and NY sessions and make most of trade during those, while off to bed during Asian session.
FTSE100... looking good as a set up for a trade.
the 4hr supertrend has been flat for 6 days. Technicall, price will move and the supertrend shift from being flat.
FTSE100... looking good as a set up for a trade. the 4hr supertrend has been flat for 6 days. Technicall, price will move and the supertrend shift from being flat. {image}
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here we go again... ftse on the move.
Edit:
I have done some explanations on the chart. Hope it helps.