Here is another Trade Plan that I thought I would share. Maybe not the best and needs further refinement, but the point here is to show how to define a Trade Plan and make it simple. Too many traders try to find the “Holy Grail” and make things so complicated that they will themselves get so many indicators that they will start making inconsistent trades. Use KISS methodology. Here is the trade plan:

Description: Trend continuation with 3 forward 1h bars.

Trigger: On 1h chart, look for three consecutive colored bars in a direction that
have come after a bar that was from the opposite direction before (i.e. 4 bars ago). Place
limit order at the price that is a 40% retracement from the high/low of
this last third bar. If limit order not hit in one bar..abandon trade.

Filter: Always trade in the direction of the 4h 50 moving average. Also, if this third
trigger bar is a DOJI/hammer (even though the color is not correct) do not do the trade.

Stop: 30 pips

Profit: 60 pips

Order management: Move stops to break even after a 30 pip gain.

You are looking for > 33% win rate…hopefully 40 to 50% win rate…this is a winner if correct. One refinement might be to the filter and say if the three bars are “x” pips too long, filter out the trade. In execution follow like a religious zealot !!! Discipline !!! Don’t forget to do your Trade Journal, so we can track how its working and be able to make these refinements intelligently.