Monthly & Weekly Time-Frames Overview : looking at our Charts we want to see the following :
#1 : The idiosyncrasy of the pair
#2 : If the move is young and strong
#3 : If there is a Reversal in progress
Going down to DAILY Time-Frame, using ICHIMOKU, BBands, Fractals and Stochastics, we can evaluate price action direction regarding the half cycle it is moving on and here are the HALF CYCLES SCENARIA :
1. Price moving from Lower BBand UP to the Median BBand
2. Price moving from Median BBand UP to the Upper BBand …….OR…..DOWN to the Lower BBand
3. Price moving from Upper BBand DOWN to the Median BBand
4. Price moving from Median BBand DOWN to the Lower BBand …….OR…..UP to the Upper BBand
Using ALL our tools, we can make the assessment of move’s pips-value and this is the REWARD.
If the REWARD is TWICE as much as our RISK and 3-4 TIMES our Daily Pips Target, we take the trade. Otherwise we drop it. For example, if the REWARD is 80pips, it is more than TWICE our 30pips RISK and 4 Times our 20pips Daily Target, so we will take this trade. If the REWARD is 50pips, it is less than TWICE our RISK so we drop this trade.
Conclusively, at this step, we find out which is the main trend on higher Time-Frames and whether the move on Daily is following the main trend or is a correction and how much of it remains till the next BBand. We also determine the direction of the Trade we’ll take and whether it is worth taking or not.
STEP #3 Rules :
Market doesn’t move as fast as we want. It moves as fast or as slow as it wants. That’s why WAITING for ALL our Criteria to be met is GOLD.
Market is an Ocean of Opportunities and just like the Ocean never runs out of water, Market never runs out of Opportunities either. So if we miss a nice Trade, there will be at least ten more waiting out there.
We never stress about Trades we might have taken but didn’t. We use REAL Time, REAL Tools, REAL Criteria, not wishes, assumptions, opinions and hypotheses.
We Enter SLOW, we Exit FAST. That means we study ALL our Entry Criteria and check if they are ALL met before we Enter but we only need to see our Exit Criterion met to jump out and save our pips.
Being the BOSS of our Trades, we are in absolute control of them. There is no Stress and no Rush. And if the Market’s Pistolero points his gun to our head pushing us to jump in a trade fast, we get rid of him IMMEDIATELY even if we have to shoot him 🙂