Trading Daily & 4 Hour Charts Using Extremely Simplified Money Management Technique

Discussion in 'Trading' started by JSSPMK, May 22, 2008.

  1. JSSPMK

    JSSPMK

    Waiting on Daily chart to put in failure swing on lower histo, red lines standard resistance levels. I am away from 2nd August, so I might not be able to maintain journal, but I will be trading though, I will do my best to post real-time.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2011554>
     
    #81     Jul 29, 2008
  2. Looks like we're getting close JSS
     
    #82     Aug 18, 2008
  3. expiated

    expiated

    Due to my current situation, it is impossible for me to monitor my positions continuously, which has forced me to attempt trading with longer term chart oscillations as well. However, in place of MACD patterns leading to a center line cross, I will be using moving averages exclusively. Also, I found that while 4-hour charts were great for identifying the ideal oscillations, they lacked the detail I needed to optimize position entries and exists. I therefore had to transfer my 4-hour configuration to my 1-hour setup. So instead of trading both daily and 240, I will be using both 240 and 60, but primarily 60, with a 240 frame of mind. I will also be trading foreign currency pairs in place of YM.

    4-Hour Strategy.png

    I was mistaken in stating I would be using MAs exclusively, since I will also be using associated moving average envelopes to help set profit targets. I will describe my strategy as it now stands in terms of entering long positions, hoping I will not have to modify it too much, if at all, as I apply it this week. (When selling assets, I will simply do the reverse.)

    I will only enter positions when the blue moving averages are sloping in the appropriate direction (upward) and the red moving average is above the four blue ones.

    The two orange moving averages (trigger lines) will serve as my buy signal, giving me the okay to go long when the candlesticks transition from forming below the lines to forming above it (see the arrows).

    My take profit target will either be the previous high, or the upper (double) band of the gray moving average envelope (if it makes sense to be a bit more ambitious). My stop loss will be the previous low. If price fails to hit my take-profit target, I will exit instead when the two gray zero-lag moving averages cross below the green moving average (exit line), or if it makes more sense, below the orange trigger lines.
     
    Last edited: May 20, 2019
    #83     May 20, 2019
  4. expiated

    expiated

    So far, I'm liking what I'm seeing and doubt strongly that there will be much need to alter my plan as described above.

    ScreenHunter_4971 May. 20 20.05.jpg
     
    #84     May 20, 2019