To be successful in trading you need: 1. Define your risk tolerance and the needed risk to win ratio based on your success rate. In addition determine the minimum number of trades needed to achieve desired period consistency within 95% based on your win% rate. 2. Find a method to determine if we are in up trend, down trend or sideways, within the parameters of step 1. 3. If up trend enter long where the price move needed to prove the uptrend wrong is less than your risk tolerance. Exit when the price shows you than the up trend is over. Profits to risk should match or exceed parameters from step 1. If down trend do the opposite. 4. If sideways. Enter long when the price is low in the range and a stop where the price move will show that we are in a down trend. Exit and go short. Profit target top of the range or exit if trend changes to a down trend. Profits to risk should match or exceed parameters from step 1. For short do the opposite. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2371797">