Ezeetrader IX Show December 2008
Index failures
• The trend is your friend • Until it ends…. • Markets will continue to make new highs or lows until the fail to do so • This is why traders are better served staying with the trend in most instances • However, a failure to make new highs or lows provides opportunities • Markets like to re-test previous highs and lows • Failures to make new highs/lows gives a reversal signal • Then its just a matter of knowing how to trade it
• Use moving averages to help with entry points • Be patient and wait for the failed new high/low to be confirmed on the higher timeframes • Go to lower timeframes to find an entry. This often means very little drawdown before moving into profitability • Use technical support/resistance/moving averages for profit levels • Can be used on any timeframe but I prefer intra-day • Ensure you have your timeframes lined up or you’ll get burned!
The bedstead strategy
Rising (falling) three methods
The bedstead strategy
• Candlesticks – Rising three methods and falling three methods– Bedstead
The bedstead strategy
The bedstead strategy
• • • • • • Currency must be trending Timeframe normally 10 minutes and above Buy (or sell) on the break of the end of pattern Allow it to finish! The last candle must close above (below) the first one The inside candles should be smaller and be contained within the first candle • Targets and stops are normally placed technically, but a minimum of 15 pips should be looked for, if technically available. • Always make sure you are happy with the risk parameters with your account size • Probability is good to high
The bedstead strategy