This strategy is based on Trend lines and Price Action.
Drawing trendlines can be very subjective and traders will draw them differently on the chart. Please first go to this thread for drawing perfect trendlines.
I have attached customized MACD indicator for strategy . This is not mine. I downloaded it from forexfactory and thanks for developer of this indicator.
Settings for 5 Min chart ( 1,13,1 ) Note: You can also use Default settings. It is upto you which one better work for you.
Draw trend line connecting highs and lows with the help of MACD .
Now wait for price to break .
ntry: Once a big candle break the trendline. Wait for the candle to close and enter.
Stop Loss: Criteria for stopp loss is it shouldn’t be less than 10 pips. It must be inside the trendline. Stop loss is based on size of breakout candle. If the size of the candle is big then stoploss can be more than 10 or 12 pips , sometimes 15 or 20 pips.
Exit: Different rules for Exit:
1. You can adjust TP for 10 pips for every trade
2. Set TP equal to Stop Loss
3. Set Tp to previous higher high or lower high
4.Set TP to next support or resistance
5. Best Exit Rule
You can make using your money management and Exit Points . For example if your SL at 15 pips and TP is also on 15 pips. Once Price reaches on target then you should close half Lot manually and move your SL at BE . Now you are free of fear. You can see many times Gold moves upto 50 to 100 pips once it breaks the trendline . It depends on you how you manage it .
Note: This is the first step for this strategy to learn and practice. Once you will understand and comfortable then we will move to make it more advance.
I prefer this strategy on Gold because Gold move 1000 to 1500 pips in one day . So if you take only Gold and practice . Once you will able to analyse Gold movements you will be able to make more than 200 pips per day using this simple strategy . There are many benefits for Gold pair .Later I will discuss.
Please do not use it on live accounts. Practice it on Demo and manually back test. Once you will learn then discuss here your experience. So together we we will make it more advance using some other filters and best indicators. Time to time I will update this first post for easy to understand .