This is my 2% swing file on the FTSE100 Index:
Thought I'd show this as its messy!
As you can SEE - there are multiple 2 higher lows that just did NOT work for one reason or another - this is why money management is crucial
However, when it did work - the results were (profit target of 240pts, stop of 25 pts = 9.6R)
If 1R = 2% of account then you're up 19% in 4 trading days
Now the smart ones of you, will be asking yourself "How often does this happen in a YEAR on a DAILY chart?"
The answer is go and look - This is the water, I've led you to it, it's now up to those that want to win at this game to investigate
Oh and YES, there are many more ultra simple trading methods in a year on a daily chart with these sorts of R profit value returns - the SP500, Nasdaq100, FTSE250, FTSE100, EURUSD etc etc etc all produce OPPORTUNITIES per year that return you 100%+ and nearer 300% PER market - Nothing more than a swing file on your charts! NO Indicators, No Moving Averages, just RAW price action
I think for this thread I'll leave it there - If you can't prosper with these ultra simple methods then you're doing something massively wrong and if you go back and check the rules to success that i started this thread with, you'll be messing up on 1 or more of them - REVISIT them and learn them
The one thing i will say is "To win big in the markets, you have to do what most others aren't doing - WD Gann showed me in his works the 2 Higher Lows / Lower Highs trade set-up, he wrote about it 100+ years ago! Along with many others that produce mega returns from the markets - I'm willing to bet very little is published out there on this subject"
If you go down the Gann route - contact me - it is fraught with bad information and works, this is because people devote a lot of years to researching Gann and when they get to the end and realise they can't work it out they still publish the sub-standard work they have been researching, which then clogs up the trading literature world and after reading 10 so called Gann books and getting nowhere people then form the opinion that Gann is a load of tosh - I was one of those people back in early 2010's, then I did something most others wouldn't bother doing, I decided to research and discount it all myself
I can tell you for a FACT:
That Gann angles WORK
Time Cycles WORK
Price Retracement and Expansion ratios WORK
But only if you use them correctly, in the right context and conditions
Why did the SP500 Index stop dead in March 2009 @ 666pts? Back in the 1900's WD Gann wrote of the "Gravity Centre" or the 50% level - there lies the answer
Good luck on your trading journey, most f you are going to fail because you're not applying the keys/rules to success - this is another fact.
Here's a little bonus material Gann Angles chart for you
If you KNOW the Time Cycle date and a simple Gann 1x1 angle falls onto THAT date (to the day) then you can be quietly confident that price is going to reach said 1x1 Gann angle within a few days of the date!
The KEY is knowing Time Cycle dates - the ones above AREN'T the Time Cycles Gann mentions in his works
Simply basic price patterns can make you an absolute fortune in this game - look at the one above on GOLD!
This is 100% why I advocate using swing files - you get to see the market in a different perspective
The chart is UK: WWH - the spread is way to wide to trade this
The 2 high Lows trade to the left of the chart, worked, but you'd of broken even on the trade at worst - This is WHY money management is crucial in this game!
There's nothing special to this trading method - It's also an Elliott Wave (EW) method too, but often if you employ strict EW rules you wouldn't take the trade.
TIP: If you have software that can search for Elliott Waves, then set it to look for Wave 4's
the blue W4 box on my software tells me that price is in the perfect price AND time zone for a EW 4
If price CLOSES below the #3 low then it would CONFIRM a bearish swing low
For simplicity all we want is for price to validate the trade by trading LOWER than #3 and we'd be in the trade
Again simple money management rules - Stop = 25% of the 50 period ATR (20pts) / once up 2 x risk (40pts) stop goes to break-even +0.1 to ensure some sort of profit and then protect 40% of any open profit
Opportunity, excellent R profit potential, excellent risk management = As good as it gets, doesn't guarantee a wining trade though
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