This is one of the simplest strategies in Forex to know and understand, to be used on any timeframe in trading: (Chart example is on 1 hr timeframe)
1) Wait for price action to stay within a range, which for me is 12.5 to 25 pips.(For scalping or day trading, happens during Asian session a lot)
2) Put both resistance and support lines above and below price action bodies (not wicks) of all candlesticks.
3) Once price action does a break of this range (either bearish or bullish), then just watch for...
4) Price action to retest and come back to this range again ( bearish or bullish)
5) Consider entering a new trade once the price action retests and hits this range again. (Might be 50%-62.8% on Fib. Ret indicator/Golden reversal area)
6) Place stop loss above this retest on a bearish/sell trade and below this retest on a bullish/buy trade.
7) Noted trade on the chart is a great 1:5 risk and reward set up on this past Friday 1 hour timeframe, but minimum 1: 2 is a good risk-reward setup.
*Remember both risk management and price action is #1 in Forex trading. Wish you good luck!!!
1) Wait for price action to stay within a range, which for me is 12.5 to 25 pips.(For scalping or day trading, happens during Asian session a lot)
2) Put both resistance and support lines above and below price action bodies (not wicks) of all candlesticks.
3) Once price action does a break of this range (either bearish or bullish), then just watch for...
4) Price action to retest and come back to this range again ( bearish or bullish)
5) Consider entering a new trade once the price action retests and hits this range again. (Might be 50%-62.8% on Fib. Ret indicator/Golden reversal area)
6) Place stop loss above this retest on a bearish/sell trade and below this retest on a bullish/buy trade.
7) Noted trade on the chart is a great 1:5 risk and reward set up on this past Friday 1 hour timeframe, but minimum 1: 2 is a good risk-reward setup.
*Remember both risk management and price action is #1 in Forex trading. Wish you good luck!!!