Strategy / Method / Algorithm

Flowchart for successful trading

1. Trend analysis

First of all, we have to identify the direction of the actual trend. Generally, I do it on D1 timeframe, but if I can't identify the trend at first glance I jump up on weekly chart.

Usually I try to find obvious higher highs, higher lows (uptrend) or lower lows and lower highs (downtrend). The exponential moving averages EMA(8,21) can help you on D1 timeframe:

• divergent slope EMAs confirm downtrend
• divergent rising EMAs confirm uptrend

If it's impossible (without any doubt) to determine the direction of the trend, probably the market is going to form a sideway range trend. I prefer trivial, obvious and strong bullish or bearish directions.

2. Retracements

• Fibo levels
• touching 8/21 EMAs
• key levels (horizontal trendlines)

3. Price Action (PA) setups

1. Pin bar reversal
2. Railroad tracks
3. Inside bar
4. Inside bar + pin bar reversal
5. Inside bar + fakey pin bar

1. Pin bar reversal - possible entry setups (for SHORT positions)

2. Railroad tracks pattern - possible entry setups (for SHORT positions)

3. Inside bar pattern - possible entry setups (for SHORT positions)

4. Inside bar + pin bar reversal - possible entry setups (for SHORT positions)

5. Inside bar + fakey pin bar - possible entry setups (for SHORT positions)