They do not come much better than this. Simple ideas can be effective. Each chart here has two grids from two forks (with just one coloured median line showing in each chart). One fork from the top of the most significant high pivot and the other...yes, you guessed...from the most significant low pivot. You will find that these grids can be done in multiple time frames and there is no ONE single correct grid. Many pivots are important and all exert some influence on price to a greater and lesser extent. On top of these grids i lay/draw the most significant forks ( & their RL's). If they are in a higher time frame i pay particular attention to them and their reaction/warning lines. These are potential reversal or retracement areas. But ...How do you trade a grid? This is not an exact science but you should see in front of you on your screen ( if you have prepared your chart well) about 5-10 or 15% of the structure that price must move through. It is similar to entering a unknown room & walking in the dark with a very dim candle or torch/flashlight...you can't see everything but after some time you can see the walls and bits of furniture and if you stay long enough you can get a idea of the layout. There are many different entry methods/setups which i have used successfully. (Combined with strict MM and trading discipline). These i have 'borrowed' these from other accomplished traders who i respect and are regular and known patterns entries or other setups and you can view my 'take' on them on my trading blog that is being set up this week.
Each trade shown with each trade sheet on 3 different sized accounts....Visit http://reactiontrader.blogspot.com which will be up and running from Monday 21st February 2011.
This site will remain as my general observation and chart site.
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