This strategy is based on supports, resistances and price action. I draw supports and resistances on 5M timeframe and I look for entry on 1M timeframe chart.
Entey rules (you should check these things before every entry)
do not trade during news
check the phase of the market (range or trend)
acceptable size of stop loss
risk reward ratio must be at least 2:1 (I prefer 3:1, if market structure allows this)
Price action formations (trade only formations created close to support or resistance)
Regular divergence - is reverse formation, announces the possibility of change of the trend direction. Indicator always toward zero.
Hidden divergence - is trend continuation pattern, announces the possibility of the continuation of the trend. Indicator always points from the zero line.
Pullback before break - Pattern is created by 4 to 12 candles and is "A" shaped for short and "V" shaped for long. This is a short backward movement after the bounce from the main support or resistance level, which stops at some of the nearby local support or resistance and after further bounce continues in the original direction.
4. Pullback after break - Pattern is created by 4 to 12 candles and is "A" shaped for short and "V" shaped for long. Price breaks the main support or resistance significantly and after the break the price comes back to the support or resistance. Price bounces from this level and continues in the original direction.
It is better to use buy/sell stop orders for enter a trade, because this is momentum trading and moves are fast very often. When I am in the trade I set stop loss at break eaven very fast, usually if trade make about 5 pips in my favor. If you will use this fast break eaven, you should expect a lot od trades exited at break eaven, but very few losses.
I use Market stalker indicator for plotting supports and resistances, becaouse I trade a lot of instruments. The best thing about Market stalker is that Market stalker sends you notifications when the price gets close to support or resistance. If I had to do everything manually, I never would not have done it.
Trade examples
