By using our FX Multimap we know how strong/weak various time frame trends are and when the market is strong enough we also buy breakouts using a volatility based trigger which we will demonstrate in future examples.
In today's EUR/USD we can see the 60 min, 720 min (half day) and 4320 min (3 day) trend was strong so we
BUY all dips to balance point, lower keltner channel or hourly statistical low
Trend Explosion Trades
Starting from the left of this chart we buy the breakout of the consolidation as the half day, 3 day and 60 min trend was VERY strong. Good for 10+ pips as it stalls at the average hourly high
(good place to exit).
We buy again at the average hourly stat low and lower keltner channel because the half day and 3 day trends STILL strong. The market then proceeds to go up 20 pips! The Green line is the Previous Week's High so is added support!
It pulls back to the balance point line and we buy again and exit at the average hourly high with a trend reversal sell signal! Good for another 12+ pips. It's here that we see the 60 min trend is lessening significantly so we exit the next trade with 5 or 6 pip gain. Aggressive traders would short there and catch 10 to 20 pips during the drop.
The half day (720 min) trend is now slightly weak so we sell the yellow balance point line, traders who are long before are long from this price and will exit their positions by selling the FIRST time it touches. This is a very high probability trade and usually works. On that drop you can see the 60 min Multimap is not too weak so we take a small scalp profit of 5 or 6 pips and bail. Trend isn't strong so we don't buy, we miss the runup but are trading safe and based on a very high win rate system!
Better to miss a move every now and then than to have a potentially big loss trading against the trend!
5 Trades - 5 Winners - 60 Pips Potential Profit
Notes:
The 60 min FX Multimap is the quickest to give us signs about how strong/weak the market is and when it is LOSING strength. We can see this at 8:30 as the market rallies up but loses its strength. It predicted that move up would be short term and you weren't going to catch any 20+ pip moves, take what you can. It also at 11am EST showed the market wasn't weak so we exited our short from 10:30am and took what we could. If you follow it you will usually get out of trades that aren't going to work for a small gain or loss.
The Divergence Buy is another system but I wanted to point it out. The previous 720 min trend was up and 3 day trend still very strong and previous week's high just 5 pips below. The double bottom here and the fact that the 60 min FX Multimap wasn't as weak the second time makes this a great trade and the market rallies up 20+ pips.
Please view our Hypothetical Results Disclosure and LeverageFX Disclosures