System Swing Trade - GBPJPY

This is a rules based strategy that we picked up from our friends at Trading College. We've taken one of their indicators and created an execution strategy that's really simple and based on 2 time frames - 4 Hour and Weekly.

It's simply about buying green candles and selling red candles. The 4 Hour is when you enter with the Weekly being your confirmation. We also like the weekly to be trending up or down. If it's too sideways, you are going to get chopped up.

On the right hand Chart - our Weekly Time Frame. The market is trending up nicely and the candles are green. We then drop down to the 4 Hour Time Frame (left chart) and enter on the colour change. We wait for the first green candle to appear, then put an order 1 point above the high of the candle. The first profit target is 1:1 with the stop loss being placed at the low of the last swing. When the price moves to 75% of the way to the first profit target, we move stop to breakeven. We've taken half profits in this trade now as price moved through our 1:1 target. We leave the other half to run or exit on the break of a red candle. Currently price has not broken the low of the red candle.