Trading Daily Charts - Best Systems?

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Trading Daily Charts - Best Systems?

Postby User » Tue Jul 07, 2009 9:29 pm

Forum transfer: Submitted by MattW on May 10, 2009 - 16:19.

Hi all,

I'm not quite ready to quit my job and take up trading full time, so that rules out scalping, 15 min charts and all the rest (you cant try trading after 6pm as the markets are static).

This leaves me simply with Daily charts and setups at midnight (or maybe 7am?).
So my question to you is,

What are the best systems for trading the daily charts?

Matt
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Re: Trading Daily Charts - Best Systems?

Postby User » Tue Jul 07, 2009 9:29 pm

Forum transfer: Submitted by Alex on May 10, 2009 - 17:49.

Hi Matt,

Trend following system would probably suit you best.
With daily charts there is a challenge to get into the trade at the very best price, because you don't want your stops to be far from entry, it is too expensive.
So, with trend following systems your best bet is to learn how to enter on market retracements.
Quite helpful will be Support/Resistance knowledge, price reversal patters, candlestick reversal patterns, Fibonacci and Moving averages.
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Re: Trading Daily Charts - Best Systems?

Postby User » Tue Jul 07, 2009 9:30 pm

Forum transfer: Submitted by MattW on May 20, 2009 - 00:17.

Alex,

Thank you for your response.
I was hoping some people would chip in with which systems they use but maybe I am the only one trying to fit FX around a 9-5.
From a personal point of view for anyone reading, Advanced 3 has strong potential following manual back-testing although you sometimes have to wait awhile for an entry and as yet I've not had one to prove the theory with real money.
For those who like to be in the market everyday, like myself, I'm working on making Advanced 1 more reliable and throwing in a trailing stop.

The general problem, as you noted, with trading daily charts only is that most systems require quite large stops - for instance just the previous day's low could be 100 points away, and the last swing low may be over 400 points.

An interesting aside, using Simple 9 with 60MA to filter direction can give profitable scalping trades from 6pm to 9pm GMT. It'll only give you 15 points and you may only get 1 or 2 trades a week but with a couple of currencies you could get close to an average of 10 pips a day.

Matt
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Re: Trading Daily Charts - Best Systems?

Postby User » Tue Jul 07, 2009 9:30 pm

Forum transfer: Submitted by User on May 20, 2009 - 05:57.

I would also be interested to hear what particular strategies people find most successful for 1 day trading, but I realise that it may be a lot..

I favor swing trading around moving averages, although I have a long way to go before I can learn how to pick the winning entries.
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