Just got CP yesterday and eager to incorporate into my trading of daily candles. Having listened to Marks wise words about CP not being silver bullet, I have come up with a strategy which attempts to blend chart patterns, MACD, Simple Moving Averages, CP and of course common sense which I am going to apply using a demo account for a while before going live.
I would appreciate any comments, feedback etc and I hope this sparks debate in the spirit of piphut.
Big up to Mark who made this all possible.
Here is the strategy, it is simple but hopefully has incorporated some wise rules. The hard thing will be to stick with it. I will try to comment every morning on the pairs I am following in terms of their daily candles.
Golden rule 1: Be disciplined, keep it simple & trade with the trend. Measure trend by eye and Simple Moving Average combinations (short term, medium, long term)
Golden rule 2: Wait for pullbacks, throwbacks and consolidations (indicated by Flags, Triangles and MA movement) to sell short term rallies and buy short term dips within longer term trend.
Golden rule 3: Use CandlePro formation analysis as additional confidence that rally or dip is about to turn and estimate by how much.
Golden rule 4: Support and Resistance as further indicators of likely success of trade and to time entry, SL and TP.
Golden rule 5: Risk:reward must be at least 2-3:1 and each trade no more than 2% of capital risked.
Golden rule 6: Once in trade, actively manage, e.g. use trailing stop loss or cut short if negative event on horizon.
Last edited by candlesurfer
on Thu Sep 16, 2010 5:48 am, edited 1 time in total.