1. Check the last closed candles of 4 different timeframes: M5, M15, M30 and H1.
2. If all four of them are green (Open level is below Close level), long positions should be opened.
3. If the last closed candle of each timeframe is red (Open level is above Close level), short positions can be opened.
If, for example, candles on H1 and M30 are of the same color, but on M15 — of the other, trader should wait for the next candle.
Take-profits and stop-losses can be placed two ways:
- Stop Loss order is placed 15-20 points away from the entry point. Take Profit order is 30-40 points. As soon as floating profit reaches 15 points, Stop Loss can be moved to the breakeven zone, or the trade can be closed partially. Trailing Stop is a very useful tool in that case.
- Stop Loss is placed near the closest extremums: below local lows for long positions and above local highs for short ones. Take Profit should be two-three times larger than Stop Loss.