1. Indicator- 50 EMA 2. Identify market type. 3. Identify market structure and market trend. 4. Draw up support and resistance levels, and if applicable make use of chart patterns.
Conditions: Market type and market structure should be identified on a higher timeframe. Price must be above the 50 EMA for buys and below the 50 EMA for sells.
Entry: When price is at an area of support in an up trending market drop down to a lower time frame and look for one of these confirmations; engulfing green candle, 2 adjacent green candles, a hammer, or a double bottom. When price is at an area of resistance in a down trending market drop down to a lower time frame and look for one of these confirmations; engulfing red candle, 2 adjacent red candles, a shooting star, or a double top. Entry at the closer of one of those options.
Stoploss: My stoploss is normally below or above previous structure that was broken.
Target: I personally use 1,4:1 just to make sure price hits those targets.
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