Below is the Alpha trader method. Raw price action. Price is the indicator.
I will start posting screen shots of examples, set ups and rules.
1. Monthly, weekly, daily, same trend direction or looking for upcoming key levels, zones, areas of support/ resistance to trade from.
(support is for longs and resistance is for shorts)
2. Draw in or place lines at those key levels ie horizontal lines, trend lines etc
3. Now we wait until price has traded to that level and we need a actual signal – see 3 below
3. Go to Daily chart look for signal to form ie bullish, bearish engulfing, hammer, shooting star (pin bar) or inside bar with trend. Fine tune on 4 hr for tighter stop placement.
4. Always use stop
READ THE BELOW SEVERAL TIMES …
YOU don’t determine your pip value or stop placement THE MARKET does.
Risk no more then 2.5% of your account value. So if you have 1000$ micro account your risk per trade starting out until it is built up will be 25$.
If your stop is 25 pips away then your pip value generally speaking on us pairs will be around $1 per pip. If you stop is 100 pips away then your pip value will be 25 cents.
READ THE BELOW OVER UNTIL IT SINKS IN …. it took me a long time to wrap my mind, head, thinking around that statement.
——> YOU don’t determine your pip value or stop placement THE MARKET does and the SIZE of your account.
When you are starting out it’s not about making money, that ONLY comes with experience, it’s about getting good at acquiring pips. Once you get good at acquiring pips only then can you start to think about the $$.
Start small ie: micro account – if you can’t trade penny or dime size pips to profitability then you certainly won’t be able to trade large size.