Sunday, June 14, 2009


OK readers,
lets talk about trading strategy today (it's a weekend today and it's raining right now..so i cannot go out and swim in a pool with my son)

The strategy : (1 hour timeframe or what ever time frame you like!)
Indicator :
1. Moving Average - I use 16 EMA (Daily - 1440 minutes)
2. Momentum indicator - it's up to you to chose - either Stochastic / RSI / MACD or what ever.

The Strategy: (for BUY)
1. Moving average Daily give you the direction to go.
Price Above MA - find BUY only
Price Below MA - find SELL only
2. Once you know the BUY only or SELL only, write it onto a piece of paper and stick it beside your monitor
3. Using Momentum indicator (in this example i use stochastic) - find the optimum entry. In this example, when stochastic turning up from 20% area. (if u use RSI, from 30% area).

For Sell (vice versa)

SL : Last swing Low before you decide to enter trade.
TP : at least 1:1 or 1:1.5 (dont forget to move the SL to BE once you achive 1:1 yeeee)

The good of this system :
1. You predetermined whether should go BUY or go SELL.
2. Optimum entry.
3. Small SL perhaps.

The bad:
1. You will not catch near top/bottom.
2. this is small tf trade - TF1hr n below.
3. Most of trader cannot wait for the setup / sleeping when the setup coming etc etc etc...

but it's good for intraday trader. (remember yah...you got 10 out of 20 day trading in profit with MM of 1:2....you are in the winner!)
10 day loss x 1 = 10
10 day win x 2 = 20
so your trade is in WIN and you are in Profit! Simple isn't it? (but not so easy in practical for somebody)

Now you know when i say " Look for BUY entry" or " Look for SELL entry"
peacegelakgulingsetan

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