I've decided to make a list of every things we need to do or check if we are going to open a trade with TF system. This idea born to the esigence to aviod human errors due to incompete checks on a trading situation with a new signal coming.
THINGS TO CHECK for OPEN a TRADE (for long trades):
1 - GMMA Green emas are above Red emas.
2 - GMMA emas must agree and head north.
3 - LaGuerre is crossing 0.15 from bellow and head north.
4 - MACD is above 0.
5 - We see a EMA crossover signal indicating a long singal (Blue arrow) at the first candle or at the following candle.
6 - Check the trend watching major charts. Do the signal accord with the main trend? Is the signal on a support or a resistance point? If we see that the major trend will go in the direction of the trend, take the trade. If we think the trend is about to change or the signal not accord with the trend, give up.
Good exits are much difficults to find, but at the end if you follow the entry rules, you will certain be paid for you efforts anyway. Calculate by yourself for how much the trend will feed your profit... always remember to replace SL to protect your profit and close half lots on the first support/resistance point and let the other half run until slope change color.
The main rules are:
1 - Follow the rules. Once you think you don't need it.
2 - Be patience. You will be rewarded. You could wait for valid signal for days!
3 - Select only valid and clear entry signals according with trend.
4 - Take your profit at the appropriate points (when a RSI worm is displayed for a low risk exit or when slope diection line change color or at fibonacci levels for more riskly and more profitabe exits) and replace SL to protect profis.
Friday, May 8, 2009
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