You did mark the important area’s to watch.. Things I would add to your system. 1. Know what time of day your favourite pair consolidates.. 2. Know the time of day your pair get active.. (usually when the local banks open) 2. Know what time of day reversals typically happen on your pair… its often like clockwork.. 3. Know how much your pair moves during average session for Asia, london, and usa sessions. Certain pairs often follow a pattern based on time of day, and traders will often take a long break when the average movement is reached. If…
It is but natural questions such as yours should come from a close observer like you of currency pair behaviour , particularly those who have observed the co-relation between the movements with impending (pre-announcement) and already happened (post-announcement) fundamental events, bank holidays, opening and closing of sessions, weekends, the end of weekly, monthly, quarterly periods on a macro level and Hot hours of each session on a micro level. Naked chart trading is very simple to follow, but it involves patience and planning. And most profitable of all the trading methods.
You really have chosen a nice subject.
I feel you have covered enough on how to detect patterns by watching the charts.
Now the question to be answered by the system are:
Which patterns are more profitable than others?
What is the ideal timeframe to follow: M1 or M5 or M15 or any other TF?
And when to trade the patterns?
(a) how much risk should be taken on . How many pips?
(b) how much to expect profit on average. How many pips?
Willing is not enough: we must do