TRADING RULES

ENTRY RULES

ALWAYS HAVE FUN!

1.    In trending market, always trade in direction of the trend.

2.    Check for pattern on 4-hour time frame.

3.    Check for sub pattern on 1-hour time frame.

4.    Check for divergence on Stochastic on 1-hour time frame.

a.    Positive divergence/no divergence is a good sign to take a shot.
b.    However, if negative divergence forms, do not take the trade.

5.    Mark out the closest resistance/support to the entry.

6.    Mark out other resistances/supports between entry and target.

7.    Set Stop Loss below/above the most recent swing low/swing high
a.      Stop Loss must not exceed maximum limit of 45 pips.

8.    Set a trailing stop of 40 pips.


EXIT RULES

1.     The target is always the principal exit level.

2.     Check if an MS low/MS high forms on a reversal level on 1-hour time frame.

a.     Close in the Stop Loss on the price level if there is a support/resistance to bounce price in the               predefined   direction;
b.     Exit position immediately if not.

3.     Check if stochastic signals negative divergence on 1-hour time frame.

a.    Close in the Stop Loss on the price level if there is a support/resistance to bounce price in the predefined direction;
b.     Exit position immediately if not.