Hello,
I have some free time. I`ll try to write about how I open positions.

After the trend is identified I trying to find moment to open position.

HOW I OPEN POSITIONS:

As I wrote before, I use Dow theory to detect the trend. Trend devided by two waves:
1. Impulse wave (Strong movement for a short period of time)
2. Correction (lateral movement for a long time or a slight movement against the trend)

I think it`s better to open positions when we are at correction. Sometime I use Stochastic Oscillator (Paremeters 8,3,3. Levels 70/30). On different instruments I use different parameters of Levels, like 75/35 or 60/40.
The signal for BUY comes when the Main line is crossing Level 30 from the bottom.
The signal for SELL comes when the Main line is crossing Level 70 from the top.

Here is my rule: 'Use Buy signal on UP trends. Use Sell signal on DOWN trends.' That`s all :)

Here is example on chart. At the begining of the chart we know that UP trend begins before (you can find this data on history), so we can use BUY signals on stochastic to open positions. I hope, you must understand my drawings :)

<a href='' target='_blank'><img src=''/></a>

victorbrigge posted:
    Hello,
I have some free time. I`ll try to write about how I open positions.

After the trend is identified I trying to find moment to open position.

HOW I OPEN POSITIONS:

As I wrote before, I use Dow theory to detect the trend. Trend devided by two waves:
1. Impulse wave (Strong movement for a short period of time)
2. Correction (lateral movement for a long time or a slight movement against the trend)

I think it`s better to open positions when we are at correction. Sometime I use Stochastic Oscillator (Paremeters 8,3,3. Levels 70/30). On different instruments I use different parameters of Levels, like 75/35 or 60/40.
The signal for BUY comes when the Main line is crossing Level 30 from the bottom.
The signal for SELL comes when the Main line is crossing Level 70 from the top.

Here is my rule: 'Use Buy signal on UP trends. Use Sell signal on DOWN trends.' That`s all :)

Here is example on chart. At the begining of the chart we know that UP trend begins before (you can find this data on history), so we can use BUY signals on stochastic to open positions. I hope, you must understand my drawings :)

<a href='' target='_blank'><img src=''/></a>



Dow theory?

I am interested in Dow who? Can i find a literature or anything to read so i can learn bit more.

bonus767 posted:
    I am interested in Dow who? Can i find a literature or anything to read so i can learn bit more.


http://en.wikipedia.org/wiki/Dow_theory

wilkinson posted:
What happens when the market ranges? Do you wait for it to trend?

But the way, I've looked at your directional analysis, and see the gbpchf trades aren't profitable. Am guessing those were test trades and you've stopped trading the pair?


Yes, I try to wait for the trend.

About GBPCHF. As a normal trader I always testing something new :) most of the profits brings me my strategy, but sometimes shit happens and I lose money by testing new systems.