Trend trading with price action (candlestick)
- Exponential Moving Average 30 (EMA) – to confirm the trend (decision maker)
- Moving Average Convergence Divergence (MACD) – to double confirm the trend (as reference only)
- Stochastic – to confirm the buying and selling status (as reference only)
- Follow the trend.
- Consider to setup the entry position only when the trend is 30 degree up or down.
- Use candlestick patterns to decide the entry position.
- Never against trend.
- Never trade when the pair is in consolidation.
- Open the trade with stop loss.
- Set at least 1:2 loss/profit ratio
- Cancel the pending order if the price action showed reversal.
- Adjust stop loss according to the price action.
- Add more unit when we are in advantage (no more than 50% of the initial unit)
- Exit the position if the price action showed an obvious reversal.
- Never manually take profit when we are in advantage. Let’s the profit to grow.
- Exit the advantageous position by adjusting the stop loss position.
- Manually exit the advantageous position only if the pair is in obvious consolidation.