Discussing the article: "Optimizing Long-Term Trades: Engulfing Candles and Liquidity Strategies"
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Check out the new article: Optimizing Long-Term Trades: Engulfing Candles and Liquidity Strategies.
This is a high-timeframe-based EA that makes long-term analyses, trading decisions, and executions based on higher-timeframe analyses of W1, D1, and MN. This article will explore in detail an EA that is specifically designed for long-term traders who are patient enough to withstand and hold their positions during tumultuous lower time frame price action without changing their bias frequently until take-profit targets are hit.
I have written this article with a clear outlook and determination to address a most foul discovery whereby it has become very common for traders recently to be lost in the noise and uncertainty of short-term trading or scalping, which has led to the demise of so many trading accounts. This, I must admit, does not only affect new traders, but also veteran and experienced traders may suffer from this time and again.
Most traders are so caught up in short-term trading and scalping and small swings that they easily forget price moves from point A to B with an agenda in place, a narrative, and a target. Also, traders easily forget that everything in the charts originates from the higher timeframe before trickling down to the lower timeframe, and thus the origin of the word top-down analysis in trading, since it is more effective to analyse trades from high to lower timeframes and even make trade executions from there based on points of interest of higher timeframe areas.
Trades analysed, executed, traded, and tracked regarding higher time frames have proven not only to be more accurate faster but also to have very little drawdown as price moves quickly towards its target points with more speed and less drawdown. Also, price swings are more powerful, meaning even if one is in drawdown, price will soon trade according to the higher timeframe narrative in play and will come out of drawdown.
This article will explore in detail an EA that is specifically designed for long-term traders who are patient enough to withstand and hold their positions during tumultuous lower time frame price action without changing their bias frequently until take-profit targets are hit. This EA is also critical for lower time frame and short-term traders since it also helps them trade according to time frame bias and order flow, avoiding trading against the long-term trend.
It has often been proven statistically that trading in the same direction as the higher time frame trend has more success in trading results outcomes than trading against the trend.
Author: Eugene Mmene