Firstly I used the weekly chart to find support and resistance lines and then drew trend lines. I also identified areas of interest, which in this case had engulfing candles sticks. These candles sticks will need to be analysed to see whether they meet my criteria. If they don't they will be eliminated and therefore help identify the best entry point for my trade.
Secondly I will minimise the time frame to the 4 hourly and repeat the process above. (Trend lines are blue).
Trend lines from previous timeframe are now deleted.
Criteria for engulfing candlesticks;
1. proceeding candle stick needs to be at least x3 bigger the previous candle stick
2. Minimum movement is 1 pip
3.
I will now search the time frame for any engulfing candlesticks. These candlesticks will then be eliminated one by one depending if they meet my criteria.
From the weekly support line to the entry line there is a 27pip gap. 1.29923 will be my entry my target will be 1% of the current price which is 1.3148 or 131 pips
I still have to work on my rules for engulfing candlesticks.
Secondly I will minimise the time frame to the 4 hourly and repeat the process above. (Trend lines are blue).
Trend lines from previous timeframe are now deleted.
Criteria for engulfing candlesticks;
1. proceeding candle stick needs to be at least x3 bigger the previous candle stick
2. Minimum movement is 1 pip
3.
I will now search the time frame for any engulfing candlesticks. These candlesticks will then be eliminated one by one depending if they meet my criteria.
From the weekly support line to the entry line there is a 27pip gap. 1.29923 will be my entry my target will be 1% of the current price which is 1.3148 or 131 pips
I still have to work on my rules for engulfing candlesticks.