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Follow the 15 minute bars
by Fritz at brainyforex
15 minute GBP/USD
The entry signal is based on two time frames. For a short trade we first want to see a 3 hour or 4 hour bearish candle. Price must move under the prior 3 or 4 hour candle. Price also to be under both the 21 and 7 period EMA. (Exponential moving averages). These moving averages to be pointing downwards.
Now we turn our attention to the 15 minute chart. We want to see the same thing on this chart. That is a 15 minute bearish candle, price to move below the prior 15 minute candle and price to be under both the 21 and 7 period exponential moving averages. And they need to be pointing down.
As we are trading a relatively fast downtrend, we will now follow the 15 minute bars downward. As soon as the prior 15 minute bar closes, move your stop loss to the top of the prior 15 minute bar. As long as the 15 minute bars are making lower lows and lower highs, stay in the trade. Do not exit early. Just wait to be taken out of the position when the next 15 minute bar exceeds the top of the prior bar.
For long positions apply the same principles as the short positions described above, only in reverse. ie Bullish candles, price above prior bullish candle, price above the two moving averages and stop loss is under the prior 15 minute bar as price moves higher.
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