Does anyone know anything about the 4 week rule, and can you explain it?
go here Four-Week Rule Boosts Winning Trades
help would be appreciated
it says buy when it reaches a high and then sell when it reaches a new low, would it not be better to buy then set the take profit to say 20 pips?
Reading it now. Thanks. It is interesting ...
may be for predicting of the market condition ...
I don't trade it so I can't help you there but maybe someone on here who trades it would help you. You are talking about a four week rule and you are bothered about 20 pips. You can get 20 pips from a tick chart.
i was saying would it not be safer to use this method, but instead of waiting for it to go from a high to a low, just set a TP level instead because surely it could just keep goin up and up until you lose all equity
In terms of draw down that's what a stop loss is for. The system has some merit but you must first find the trend. Remember this is a trend following system. In trending markets you would make a killing.
Markets move sideways more than they trend.
Anyway have a look at the chart this is Cable which is in a very strong down trend.
You would sell on the green line and place your stop above the yellow line which is the 10 MA.
Oh and cable just made a new 4 week low
LAST FOUR candles strategy isn't so bad. The indicator is made by Kalenzo.
P.S. One of the four candles should be inside or the outside bar. The In/Out indicator is attached.
interesting article thanks , trend following is the most profitable forex system I think, because you ride the trend
Forex Indicators Collection
For all interested read, page 219 of Amazon.com: Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance): John J. Murphy: Books
Very interesting article. Thank you for sharing the link. Can learn a lot from this.