Forex Price Action Trading Strategy

Hi all,

After a very long absence I've come back to currency trading.  My last account was re-appropriated to fund living expenses after I was diagnosed with stage 3 non-Hodgkin Lymphoma. I was under insured and medical expenses can be onerous at best.

I thought I should post my latest price action trading strategy. I've been focusing on short term scalps, trading off the M15 chart for entry signals. Support and resistance levels come from D1 & H1 charts along with fib retracement calcs when appropriate. You'll also see from time to time lines that show the previous day's high/low, previous week's high/low and previous month's high/low.

Price Action Strategy


Charts
  • Mark nearby round numbers (D1, H1)
  • Mark nearby swing points (D1, H1)
  • Place fibs on chart (H1, 15m)

Signals
  • Price @ swing S/R level with hammer or outside engulfing candle
  • Price @ round number S/R level with hammer or outside engulfing candle
  • Price @ 50% or 61.8% retrace level with hammer or outside engulfing candle.
  • Can front load by a couple of pips with limit/stop order.

Entry
  • Enter market price @ close of signal candle.
  • Trader discretion to place limit or stop order for entry.
  • Trader discretion to place limit or stop order for 50% pullback entry into signal candle.

Stop Loss
  • Place stop loss above 74.6% fib level or swing high/low.

Take Profit
  • Place take profit at 2:1 of entry price + spread.

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