37# 30 pips Method Trading System
Submit by Forexstrategiesresources
Time Frames and Currency Pairs
On the EURUSD – You can trade on a 1 minute chart for lots of scalping or on a 5 minute chart. All of the rest of the currency pairs use the 5 minute chart only
There are just 2 Steps for you to follow.
Step 1 Look for the colored arrows on your chart. They tell you what to do. There are 3 kinds of arrows for you to consider.
High Probability Trades: RED arrow for a SELL BLUE arrow for BUY. These trades have the best chance for success as everything is lined up perfectly. This is the best.
Aggressive Trade: Yellow arrow pointing down for a SELL or up for BUY These trades are more aggressive. Often these are still very good trade opportunities but you should use a smaller lot size when trading these. See money management below.
White Hot Trades: White arrow pointing down for a SELL or up for a BUY.
These are trades where the price is bouncing off of the support or resistance lines on your chart. These are higher risk trades which can go in the right direction for huge profit. The white hot trades work best on the EURUSD and the GBPUSDbut not as well on other currency pairs.
Step 2 After you see the arrow showing the trade direction on your chart.
For a BUY: Look for a strong bullish candle formation on next candle ( A candle that CLOSES above the OPEN price of the previous candle) Open your BUY right after it closes. (use “time to next bar” indicator which is included to help you time your entry properly) See examples below.
For a SELL look for a strong bearish candle formation on next candle (a candle that CLOSES below the OPEN price of the previous candle. Open a SELL trade right after it closes.
Note: Also take into strong consideration the size of the next candle mentioned in Step 2. When you enter a sell trade look for a very strong bearish candle, if you see very small candles with little volume, don't enter, wait for a good candle. Be very patient and look for very good entries
Also, If the candle is too large right after the arrow shows we will want to ignore that trade. If the bar is say 15 -20 pips or so you may want to ignore that trade as it could reverse backwards. Wait for another opportunity.
Stop Loss: Place a stop loss a few pips below the candle that has the colored arrow pointing to it for a BUYor a few pips above the candle with the colored candle pointing to it for a SELL (max of 10-12 pip stop).