Trading Rules

Below are my trading rules and plan which you can freely adopt, however, it is more of discretionary than mechanical (i will post some mechanical rules in my next few posts)

1)Check Upcoming News @ http://www.forexfactory.com/
- This is used more as defence, mainly to avoid unpredictable major annoucements which may cause big moves
- This can also be used to ride the reaction after the news. A possible break up trade.

2) Check Weekly, Daily and 4hr chart to decide on the main direction i will trade
Bullish when:
- Price Above Moving Average
- Moving Average moving up
- MACD Histogram turing positive

Bearish when:
- Price below MA
- MA moving down
- MACD Histogram turning negative

3) One direction is decided, look for opportunity to ride the wave using:

3a) Reversal Technique:
- Candle Sticks touches either (Support/ Resistance, Fibonacci lines, Pivot Points, Trendlines)
- Candle Sticks patterns
- Slow Stochastic overbought/ oversold
- MACD bullish/ Bearish

3b) Breakout Technique
- Breakout from support or resistance of last high/low
- Slow Stochastic overbought/ oversold
- MACD bullish/ Bearish

Initial Stop based on technicals (Risk to Reward must be more than 1)
Profit Exit based on either TP or Trailing Stop

Money Management rules: Risk no more than 2% of capital.
(Will take 2 positions of 1% risk each, one aiming for TP, one aiming to ride)