Markets: EUR/USD and GBP/USD
Technical Chart: 5-minute
Method: Long or short will be based on a combination of a Lead Indicator, and two simple moving averages (SMA) of 10 or 20 sessions.
Trade setup:
1. When the Lead Indicator lights up (between 12 am -10am), it gives an alert to go long or short.
2. Enter after 6am when the 10SMA closes above 20SMA for long positions and when the 10SMA closes below 20SMA for short positions.
3. Exit when the price closes below or above the 20 SMA for long and short postiton respectively.
4. This strategy gives good results on EUR and GBP charts when the price momentum picks up after the opening of London market around 8 am.
5. Stops must be placed when the condition 2 disappears. Or use an inital stop loss of 50 pips when opening a position.
Examples:
Long EUR/USD: +25 pips
Short GBP/USD: +150 pips
2 comments:
What is the lead indicator? If you explained this before I apologize for being dense. If it has something to do the the sentiment I need more explanation.
It is my custom-made indicator which I developed a while back. It is not related to our day trading approach and sentiment.
Lloyd
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