> Trading System Scribblings - A Simple Range Trade

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Simple Range Trade System

Chart Set Up: Identify important support and resistance levels on the hourly chart. Most good charting packages do this job for you, but it's possible to do it yourself with screen time.

Add the Stoch (5,3,3) oscillator to your chart to pinpoint possible long and short entries in the market.




Execution

1. Wait either for a pull back towards support or a rally towards resistance.

2a. For long trades: Go long if price touches support and reverses long with a positive stoch cross from below 20 (see chart above)

2b. For short trades: Go short if the price touches resistance and reverses with a negative stoch cross from above 80.

3. A stop loss is set just below the most recent level of support @ 0.8314.

4. Target is just below resistance

As we can see from the chart AUD/USD price touches a significant support level and goes back up. (AUD/USD holds support). The gray circle indicates the time to go long in the market @ 0.8365 (Stoch cross from below 20).

NB. This is a simple set up and system. Extensive testing in your market with an appropriate reward to risk ratio is needed and once again other T.A. should be used to confirm price reversal, i.e candlestick patterns. We go on to talk about these later in the resource

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Simple Range Trade System

Chart Set Up: Identify important support and resistance levels on the hourly chart. Most good charting packages do this job for you, but it's possible to do it yourself with screen time.

Add the Stoch (5,3,3) oscillator to your chart to pinpoint possible long and short entries in the market.




Execution

1. Wait either for a pull back towards support or a rally towards resistance.

2a. For long trades: Go long if price touches support and reverses long with a positive stoch cross from below 20 (see chart above)

2b. For short trades: Go short if the price touches resistance and reverses with a negative stoch cross from above 80.

3. A stop loss is set just below the most recent level of support @ 0.8314.

4. Target is just below resistance

As we can see from the chart AUD/USD price touches a significant support level and goes back up. (AUD/USD holds support). The gray circle indicates the time to go long in the market @ 0.8365 (Stoch cross from below 20).

NB. This is a simple set up and system. Extensive testing in your market with an appropriate reward to risk ratio is needed and once again other T.A. should be used to confirm price reversal, i.e candlestick patterns. We go on to talk about these later in the resource

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