That is an experiment which I chose to begin under the effect of DazFX Intraday egy, with some ideas from Jacko method and aid from J16 PA too.
I will attempt to test a egy of trading off Daily Charts, using simple rules: if the Trend is Up, Buy on Dips.
I can Buy on Dips using Fib retracements, Stochastics, 5 Sma and PA since the tools for my trading choices. Take profit will be at FE 61 percent and FE 100% mostly.
A great example of what I am trying to do is at the below chart, Eur Jpy, 2008.05.12.
Eur Jpy in an uptrend, so we just Buy Dips, i.e. buy right at the end of the long black candle highlighted in yellow. Why? As it is off Fib 50, it's a Double Bottom, stoch is crossed up, the candle closed over 5 Sma and its a perfect DBLHC
Buy 3 lots at 161.40, using a stop below the swing low at 158.50. This gives us a risk of 290 pips. Therefore our initial TP will be at 161.40 290 = 164.30, next at FE 61 percent = 166.60 and final one at FE 100%, which has not yet been attained, after almost 2 months.
I would focus on trading just EU, GY, EY and UY with this method, especially because trading on the upside for GY EY and UY could be an excellent process of carry trade too. Imagine how much interest you would have obtained if you took the above mentioned transaction and held it until now, for 2 months
Finally I received my setup in place on both the EU and GU today.
The two daily candles closed over 5sma. For EU, todays candle broke the high of the previous IB candle, and this also shows the direction is up.
For GU the stoch is not yet crossed up, but today's candle equals in length the previous daily candlethey possess the identical low and same close, so this tells me this is a dip and from now GU is conducive to the upside.
Buy EU 3 lots @ 1.5925 SL in the swing low 5 pips buffer 1.5775
TP1 = SL = 150 pips at 1.6075 TP2 in FE 61 1.6040 TP3 in FE 100 1.6200
Buy GU 3 lots @ 2.0040 SL 1.9900 TP1 2.0180 TP two FE 61 2.0200 TP3 2.0400
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