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Hi mate, thanks to you.
I think that to win consistently is to do the same thing repeatedly and perfect it over time. It is not looking for a pattern, but an opportunity to enter the market with a low risk. If someone looks for a kind of guide or steps to follow I will say that basically what I do is this:
Ok, the price always does the same thing. Go up or down creating trends. The trend ends when reaches a certain level price and turns around, giving rise to a support or resistance. Once supports and resistances have been established, the price simply goes from one to the other and either it breaks it creating a new level or bounces back to its origin. This is not mathematical science and has its share of randomness, but for me it is clear that large operators fix huge amounts of orders at these levels. The price simply goes from one level to another and sometimes creates new levels. In the middle, and losing your money, are the retail traders.
The first thing I do is look for the supports and resistances in a weekly chart. The longer the time frame, the stronger the level. I mark the lines and renew them every week with the new levels, if there are any.
Then I go to the one hour chart. I feel comfortable with this TF. I can see the daily behavior of the price and the time frame is the same anywhere in the world, but not the four hour, much used.
Knowing what are the supports and resistances, what I have to do now is to identify the trend, to know what support or resistance comes the price and which way it goes. This is not an rocket science, but the moving averages and the daily opening price help me.
Although it is not a rigid rule, when the price is below the daily opening price and the moving averages, it usually continues to fall looking for the following support, but bearing in mind that the movement may be limited by the average of daily pips of each crossing. If the EURUSD has an average of 80 pips a day, it has traveled 75 and there are 60 pips to reach the next level, it is most likely that it will not reach that day, that the next day there will be a setback and finally it will. But as I say this is not mathematical, but it is probable.
Once I have identified the levels, and the trend, you just have to look for a small risk trade using the renko chart.
The renko chart shows me a clearer visualization of the price in the very very short term. I look for an entry with a low risk and that is likely to reach the next level if it is intraday, or a higher level if I seek a higher r: r.
This is all, it seems very basic, very simple, and it is. It is not necessary to look for indicators because they will not change what the price does. The indicators follow the price, they are not anticipated.
But now, the most difficult part of the bussinessWhen to exit?… What will be the target?… The target depends on each trader. There are traders who do not have the patience to have a trade open for a week, two or more, and see how the price turns around and touches their stop loss after it does not reach the level they thought it would touch. This is why there are traders who prefer the daily benefit. For me, the ideal is to find the balance between both. And this, and not the behavior of the price, is the most difficult part of this business, because it depends on the emotional character of each trader, their nerves, their expectations. For me this is what really MARKS the difference between a successful trader and one that is not, and this MUST discover each with hours and hours of charts.