GBP/CHF setup if you wonder How?

This Example for low risk trade, kindly feel free to leave a comment.


. How I know this is potential good trade opportunity?

first let us start by basics, you need:

1.  Weekly clean chart 
2.  Draw weekly horizontal lines Support and resistance if you don't know read this one: how-to-draw-support-and-resistance
3.  40 EMA & 110 EMA in 4H and 10 EMA & 20 EMA in Daily chart 
4. Then watch for signal daily or 4H it could be also in 1H but in begging is better to stick in 4H and Daily
5. Browse all your favorite currency mark all weekly support and resistance
6. if you find signal near those level you need to act how :)
7. Open a trade and leave it alone we are done.
8. why I'm having indicator simply because i don't wont to sell low or buy high that only 

. Let us speak Price Action:

1. Market it is swinging High without retrace or correction
2. Marking reject high level top we found Shooting Star reversal candle
3. We are looking for mean reversion opportunity here
4. I don't question myself to much i see level and signal both together
5. I make a sell limit order in have of the reversal candle then i wait to be filled
6. Stop loss high of the candle 
7. Target 2 to 3 time more than my Risk because we in reversal situation.

I assume you do know Price Action but if you want to learn see these 2 guys:

http://www.learntotradethemarket.com/  Nial Fuller 

or

http://www.theforexguy.com/ Dale Woods

When I need to open a trade?

My Goal: FINANCIAL INDEPENDENT AS PROFESSIONAL FOREX TRADER WHO FOLLOW HIS PLAN ACCURATELY AND HAPPY ABOUT WHAT MARKET OFFER TO HIM

• Price Action approached based on Trend and candle sticks (Pin Bar + Inside Bar + Fakey + Failed Pin Bar) 

I'm in market My mood is okay and I'm free I need to open a trade:

• My Pairs are:

USD/JPY

EUR/USD

GBP/USD

AUD/USD

NZD/USD

USD/CHF

USD/CAD

CHF/JPY

EUR/JPY

GBP/JPY

NZD/JPY

AUD/JPY

EUR/CHF

GBP/CHF

AUD/CHF

EUR/NZD

GBP/NZD

It is long list but I'm looking for TLS I'm not skeptical about which pairs at least this list contain high liquidity pair

• What I have to look for:

1. In Daily Chart
2. Draw one or tow horizontal line maximum
3. look for Confluence three thing come together TLS: Trend + Level + Signal
4. OR Retracement (EMAs or 50%) to key level R+TLS
5. I look for trend who has above characteristics if I found it good wonderful then i started to plan my entry and I build a scenario otherwise I will keep searching, Normally market will not forget these level see there is plenty of chances which just run above or below or market like to make new high or low so no setup no trade
6. Suppose I found TLS then i call it I have a Setup, with the trend or at least with recent trend then I found signal rejecting a level.
7. I will open a trade with limit/stop best because I'm invited and some time market order with small gab between signal and stop loss
8. I set my target then go to have fun some where else

• Money Management:

1. No trade without stop loss
2. No trade over my risk R
3. I defined my R based on the amount I can accept if I loss 

• Trade Management:

1. Check the trade every 4H
2. No baby sitter trade
3. No interfering 
4. No over analyzing
5. I lock in profit after 2R I lock 1R after 3R i lock 2R
6. I never Exit Emotionally 

• Mental Management:

1. No greed
2. No revenge
3. No day dream this trade must be winner
4. No regret
5. No memory every trade is independent from previous trade
6. No Fear, if my setup formed i will execute my entry
7. No gamble, no setup to trade

K.I.S.S concpet

KISS

Keep It Simple Stupid:

1- Don't be crazy with Support and Resistance Level or Trend Line:

•  There is no need to  have multiple Horizontal Line across you chart this will make analysis very difficult.
• Ask yourself if you need to draw one line where it will be
• You can go to maximum 2 line.

2- Develop a daily trading routine:

• Why because you don't need to miss good trade

To read complete article go to 

http://www.theforexguy.com/keep-trading-simple-k-i-s-s/