Very simple trading method

Hi Fellow traders, as promised, let me share a method of day trading that I use.

It is not my method, it was taught to me, and now I will teach it to you. Its a very simple method and does not require any analysis of the market, although it is helpful to see the previous days candle close for general trade direction. It is also helpful to mark off your closest daily levels of support and resistances with horizontal lines on your chart.

So, we need to place two moving averages on our charts – please colour them differently.

Settings: Simple moving average applied to “typical price” period 6, shift 0

Second one is period 6, shift 1

These two averages combined is what price “rides” upon. Henceforth, I will call these two averages “the ribbon.”

Basically we are looking for price to break the ribbon, and have our two moving averages cross each other. Then we look to see if there is separation of the two averages – If so we initiate our buy/sell.

Use any time frame you like. I prefer 15min as I can get 1-2 trades per session on a particular pair. The higher time frames will give you more reliable signals and of course bigger profit targets.

I do 1:1, or 1:2 trades. Lower time frames its better to take 1:1 unless you have reason to believe that you are about to ride a big move.

Do not trade a big candle that breaks the ribbon.

It may seem too simplistic – and it is, but this will put many many pips into your pockets.

Only use this method from London open to NYT close. You can trade in the Asian session, but sometimes its more exciting to watch paint dry on a wall 

Please refer to the chart examples for how this method works, and please let me know if you have questions.

Cheers.