40P策略 (40P Strategy)

Sorry if my english is not good.

My strategy is a naked chart trading strategy. 40P means 40 Pip and this is a pullback and trend-following systems.

First of all, the very first of technical analysis you need to learn when you still a "newcomer" in this forex ecosystem is "The Market Structure". Many of you maybe have know this, but still not have an objective rules about market structure so you will be a little bit confused about that when you go to the real chart.

So in this first post, I want you all have rules for your market structure. Me, myself, like to trade at 15M TF at XAUUSD. For me, in XAUUSD 40Pips is a "safe" range to price to make a rejection and to take a trade. That's why I pick 40 Pips for my rules.

My rules for market structure is:
1. If price have move 40 pips from its highest or lowest point at the time, it a confirmed pullback. If not, it means it could be make a new highest point so wait for it to happen.
2. If after 40 Pips or more pullback, the price close above the highest point I mark and never close below the low of the previous BoS, it was a BoS (Break of Structure). The lowest point of that pullback into BoS is my new low. (And reverse for Downtrend market)
3. If price closed below my low of previous BoS. It was a ChoCh (Change of Character) and the trend is changing from bullish side to bearish side.

With this 3 rules of market structure, you can be profitable (really).
I will explain how to get the profit with this 3 rules in the next post.