1. At the start of the trading day plot your trendlines, support and resistance lines.
2. Determine the price motion in terms of the moving averages.
3. High probability trades are off the 21 EMA as its often Trend Continuation patterns.
4. When drawing trendlines have 2 lines with price action in between and as close as possible to define the support and resistance lines. The 2 trendlines defines the overall trend, the boundaries of the price action and the direction of movement.
5. If there are news coming discern the possible outcomes if it is either positive or negative and determine the anticipated movements in terms of the moving averages and price level.
6. Your focus should be around the price movements in relation to the moving averages (8 EMA, 21EMA, 89 SMA, 200 SMA and 365 EMA), trendlines, support and resistance levels and price levels. Then look for the MACD to confirm signal.
7. Homework on price movement should have been done before looking at the MACD signal. Look for anticipated price movement.
8. Don’t take every MACD signal. Look for the perfect setup.
9. Don’t jump around ten pairs. Stay with the minimum and keep track of their price movement.
10. Look at market emotions: Candle formations at critical points on the chart will show emotions.
11. Wait for the playing ground to be removed (i.e no messy Moving Averages) so that the market can get rhythm and definite direction. Go with the rhythm and trend of the pair.
12. Countertrend only when near major trendlines, resistance and support lines, R:R is 1:1 or better, towards the 8EMA or 21 EMA as profit target.
13. Countertrend trades are high risk trades look for only 15 – 25 pips maximum the get out.
14. When price break through the 89 SMA it tends to pullback to the 21 EMA if it is a trend direction change before continuing back on its direction otherwise it tend to test the 89 SMA again.
15. When price breaks through the 200 SMA or the 89 SMA it tends to pull back to it before moving on.
16. At the end of a run price will pull back to the 21 EMA and then it will close above it (if in a downtrend run) or below it (if in an uptrend run). It will often pull back to the 21 EMA again and then go to the 89 SMA.
17. Price tends to oscillate between the 89 SMA and 200 SMA sometimes in a consolidation. We take the deals off the support and resistance of the 89 SMA and the 200 SMA till we get a breakout.
18. Take the trades at Trend Continuation MACD pattern off the 21 EMA.
19. Look for good and perfect setup off 21 EMA, 89 SMA, 200 SMA, trendlines, support and resistance lines wait for the MACD signal confirmation.
20. When price breaks major support and resistance lines, it tends to come back to it (retest it) before it moves away.
21. Trade the bounce off 89 SMA on 4Hr chart and confirm Trend Continuation pattern on 1HR chart for aggressive entry.
22. Only look at the 1HR when the 4HR gets to support or resistance areas, a big trendline, around the 89 SMA or the 21 EMA. The anticipation is that there may be a turnaround and it might be a big candle.
23. Aggressive turnarounds are normally in consolidation period.
24. The overall trend direction depends on the time span one looks at. Keeping in mind the overall motion of the market in the longer term will help you anticipate which way the market is going to go more or less and while going in that direction you move with H4 motion.
25. When there is a breakout wait for a retracement to the breakout point and after a pullback price may go beyond retracement level enter.
26. Long tails up or down tells me the price is running out of steam, momentum is changing, there is uncertainty and price move often turnaround.
27. Should there be a moving average or price level nearby and below or above your entry level you must take note that the price might go and test them so your stop loss must be aware of that.
28. When the price is above the 89 SMA we are in a bullish mood and when the price are below the 89 SMA we are in a bearish mood.
29. When there are small candles finding support on the 8 EMA price tends to move away from it.
30. When price closes under or above the 8 EMA it sometimes tends to pull back to the 21 EMA.
31. After a breakout the price very often turns back to test the breakout level and then that level becomes either support or resistance, your stop loss has to be inside the breakout level otherwise it can be triggered and after sometimes it can be a very big candle before entry signal is given by the MACD.
32. As a beginner trade only Trend Continuation patterns as well as Round Tops and Round Bottoms at support and resistance areas.
33. Entries level is sometimes determined by the MACD but most importantly is the price rhythm.
34. Exit or profit levels are determined by support and resistance levels, moving averages, fib levels, trendlines, price levels and pivot levels.
35. MACD signal must be in harmony with market rhythm and risk reward ratio be equal to or greater than 1.
The rules were found on FF.
2. Determine the price motion in terms of the moving averages.
3. High probability trades are off the 21 EMA as its often Trend Continuation patterns.
4. When drawing trendlines have 2 lines with price action in between and as close as possible to define the support and resistance lines. The 2 trendlines defines the overall trend, the boundaries of the price action and the direction of movement.
5. If there are news coming discern the possible outcomes if it is either positive or negative and determine the anticipated movements in terms of the moving averages and price level.
6. Your focus should be around the price movements in relation to the moving averages (8 EMA, 21EMA, 89 SMA, 200 SMA and 365 EMA), trendlines, support and resistance levels and price levels. Then look for the MACD to confirm signal.
7. Homework on price movement should have been done before looking at the MACD signal. Look for anticipated price movement.
8. Don’t take every MACD signal. Look for the perfect setup.
9. Don’t jump around ten pairs. Stay with the minimum and keep track of their price movement.
10. Look at market emotions: Candle formations at critical points on the chart will show emotions.
11. Wait for the playing ground to be removed (i.e no messy Moving Averages) so that the market can get rhythm and definite direction. Go with the rhythm and trend of the pair.
12. Countertrend only when near major trendlines, resistance and support lines, R:R is 1:1 or better, towards the 8EMA or 21 EMA as profit target.
13. Countertrend trades are high risk trades look for only 15 – 25 pips maximum the get out.
14. When price break through the 89 SMA it tends to pullback to the 21 EMA if it is a trend direction change before continuing back on its direction otherwise it tend to test the 89 SMA again.
15. When price breaks through the 200 SMA or the 89 SMA it tends to pull back to it before moving on.
16. At the end of a run price will pull back to the 21 EMA and then it will close above it (if in a downtrend run) or below it (if in an uptrend run). It will often pull back to the 21 EMA again and then go to the 89 SMA.
17. Price tends to oscillate between the 89 SMA and 200 SMA sometimes in a consolidation. We take the deals off the support and resistance of the 89 SMA and the 200 SMA till we get a breakout.
18. Take the trades at Trend Continuation MACD pattern off the 21 EMA.
19. Look for good and perfect setup off 21 EMA, 89 SMA, 200 SMA, trendlines, support and resistance lines wait for the MACD signal confirmation.
20. When price breaks major support and resistance lines, it tends to come back to it (retest it) before it moves away.
21. Trade the bounce off 89 SMA on 4Hr chart and confirm Trend Continuation pattern on 1HR chart for aggressive entry.
22. Only look at the 1HR when the 4HR gets to support or resistance areas, a big trendline, around the 89 SMA or the 21 EMA. The anticipation is that there may be a turnaround and it might be a big candle.
23. Aggressive turnarounds are normally in consolidation period.
24. The overall trend direction depends on the time span one looks at. Keeping in mind the overall motion of the market in the longer term will help you anticipate which way the market is going to go more or less and while going in that direction you move with H4 motion.
25. When there is a breakout wait for a retracement to the breakout point and after a pullback price may go beyond retracement level enter.
26. Long tails up or down tells me the price is running out of steam, momentum is changing, there is uncertainty and price move often turnaround.
27. Should there be a moving average or price level nearby and below or above your entry level you must take note that the price might go and test them so your stop loss must be aware of that.
28. When the price is above the 89 SMA we are in a bullish mood and when the price are below the 89 SMA we are in a bearish mood.
29. When there are small candles finding support on the 8 EMA price tends to move away from it.
30. When price closes under or above the 8 EMA it sometimes tends to pull back to the 21 EMA.
31. After a breakout the price very often turns back to test the breakout level and then that level becomes either support or resistance, your stop loss has to be inside the breakout level otherwise it can be triggered and after sometimes it can be a very big candle before entry signal is given by the MACD.
32. As a beginner trade only Trend Continuation patterns as well as Round Tops and Round Bottoms at support and resistance areas.
33. Entries level is sometimes determined by the MACD but most importantly is the price rhythm.
34. Exit or profit levels are determined by support and resistance levels, moving averages, fib levels, trendlines, price levels and pivot levels.
35. MACD signal must be in harmony with market rhythm and risk reward ratio be equal to or greater than 1.
The rules were found on FF.
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