Who’s online There are currently 7 users online. Submitted by Edward Revy on Forex opening hour 29, 2007 – 08:11.
Ready to dedicate your midnight hour to Forex trading? This strategy can be your winner. This system is based on the fact that most of the time you won’t find same size candles for 2 consecutive days on a daily chart. 90 pips long we will not open new trades the next day.
While an Inside bar candle implies a good breakout opportunity the following day, it can also be a dual whipsaw breakout – a break in both directions – the most unwanted scenario for our trading system. 5 pips, and Sell stop order at the bottom -5 pips. Put your stop loss order for a Long entry at the lowest price of the previous day -3 pips. These additional pips for entries and stops can also be adjusted once you learn the behavior of a chosen currency pair over the time. 100 pips, then you may close current position to reward yourself. Rewarding is a very powerful tool, use it.
100 pips in profit, while the second one will be left to run till we get stopped out, thus allowing us to collect everything the market is willing to offer. Doji candle or is almost a Doji. Also close your open trades if you’ve met a Shooting Star candlestick in an uptrend or a Hammer candlestick in a downtrend. On May 1st at 00:05am, we opened a daily chart and it was a downtrend.
The same day our Sell order gets filled. The day has passed and the price made some further progress down. This system also gives an opportunity to be constantly in a trade and at the same time it requires very little observation and takes only 5 minutes a day to set all positions and forget about Forex till the next midnight. Next is a detailed candle-by-candle explanation of the trading on the chart above. We will number candles starting form 1, so number 1 is a circled candle. Midnight: the 2nd candle is over 90 pips long, we’re going to reset orders according to the 2nd candle’s high and low. The second candle is also an Inside bar, so if we decide to trade, we should keep in mind that our risks at this stage will be higher.
Midnight: day ended negatively, but didn’t trigger the stop loss, we keep our position open and adjust stop loss below the low of the 3rd candle and minus additional 3 pips. The 3rd candle is also less that 90 pips long and we wouldn’t trade the next day except that for now we have already one position running. Choosing a profit target for the day becomes easier when you know a daily range average for a particular currency pair. Taking about a half of it can determine your daily profit targets. 20 days, excluding Saturdays and Sundays, you can use the following custom indicator for MT4: Daily_Range_Calculator. Attention: with 5 decimal platforms you have to disregard the 5th digit. On 4 decimal platform no adjustments needed.
Inside bar, thus we are not setting any orders for the next day. By the end of the day we reevaluate the charts and it is a good time to set new trades. 150 pips, so we lock it in. At midnight we set new orders again.