Use it, Like it, Master it (system revealed)!

Rules of the system.

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.

Week 50 / 2015

Well, end of the year ahead ;)

I remember on of my favorite fx mentors said: 'you shall never trade in December'. You may ask why? The reason is combined: low volumes, erratic movement, central bank and funds reports and balance results publication, to name only few.