Originally Posted by cja

Afew people have asked about different indicators i use to trade, here is an indicator i made quite some time ago but it still provides good clean signals,
as price approaches the BUY/SELL areas look for the M1 to turn and the M5 to turn, when the M5 turns with good separation price usually runs a good 30 to 40 pips, if the M15 and H1 are in agreement, the H1 shows the overall trend for the day the H4 the overall trend for the last few days. In other words do not go LONG if the M5 has just started to turn down at the top of its range and do not go LONG if the M15 & H1 are turned down with separation, if the M15 & H1 are fairly flat then enter on the M5 but be aware that the move may not have much gas. I use this in conjunction with the MM levels which helps confirm the strength of a move.

As far as the daily average is concerned, if price exceeds the 2nd Targets then it will generally run to the 75% or 100% level if the 75% level is very close to the 2nd target or even below the target then be prepared for a major breakout as this shows an extreme lack of action the previous day and we saw the result of this late last week with the GBP running 200 pips, big news will often run to the 100% and news such as NFP will often run to the 150% and beyond if the news runs with the prevailing trend.

I suggest you run a tight stop on entry and when a couple of pips can be locked in then let the trade breathe, if you enter off the M5 then even if you get it wrong little harm will be done and you may even gain a few pips.

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