Forex Easy pullback strategy

Hey guys, i've been trading for a bit more than 2 years, and only proftable and consistent this year.
I studied like crazy hours and hours a day, from tecnical analysis to candlestick patterns back to elliot wave and tape reading, and backtested a huge amount of trading systems, most of them swing trading systems, till i settled into forex trading as a swing trader.
What i wanted was a trading system focusing on a caracteristic from the market that never have changed and never will, this caracteristic is for me the PULLBACKS.

Catching a good pullback in the other hand is not easy, while it looks like a pullback on the 1h chart it may only be a wick of the 4h chart. The trigger for entering the trade is also hard because while waiting for confirmation 15 to 20% of the movement of the trade is lost, while entering without confirmation may lead to losses since you never know what fib level it will respect and what last pivot zone it will stop.

I started out with loads of indicators at my charts, going from Bollinger bands to personalized ones, at the end i cleaned things up and have been trading this stratgy for a while.

STRATEGY:

I trade the 1h and 4h charts only, feel free to try any other timeframe, but for me at least it is not worth it.

The ultimate trading advice everybody knows is: NEVER TRADE AGAINS THE TREND. But how to define and choose which trend you want to follow and catch?
Well there it goes:

I USE INDICATORS:

- EMA 100 APPLYED TO CLOSE, HIGH, AND LOW
- STOCHASTIC OSCILATOR 20 3 3, overbough at 80 and oversold at 20

RULES:

- BUYS:

* If trading the 1h chart, both the 1h and 4h timeframes MUST BE OVER the 100 emas. If daily also is? GREAT!
* If trading the 4h chart, both the 4h and the daily MUST BE OVER the 100 emas. If weekly also is? GREAT!

- Sell:

* If trading the 1h chart, both the 1h and 4h timeframes MUST BE UNDER the 100 emas. If daily also is? GREAT!
* If trading the 4h chart, both the 4h and the daily MUST BE UNDER the 100 emas. If weekly also is? GREAT!

ENTRIES

Needless to say that all trends make HH and HL (bullish) and LL and LH (bearish).

- When spoting the stochastic entering the overbought or oversold area, look for the current swing leg and draw the fibonacci retracement.
- My sweet spots are the 50 and 61.8 fib retracements.
- Once a candle is closed and it makes the stochastic lines touch or become "SUPER CLOSE" INSIDE the overbought or oversold area we open a position at the open of the next candle.
- If all the above criteria are met but the pullback haven't reached at least the 50 fib retracement you can wait a tap at it before entering, unless you have a good motive to get in before the "sweet spots".

SL and TP

- Put the SL on the nex fib area toched by the candles + 5pips (1hour) or + 10pips(4hour), Since my sweet spots are the 50 and 61.8 fib retracement usually my SL are above/below the 61.8 or 78 fib retracements.
- TP is 3x the sl. You may try less or more R:R Ratios.

TRADE MANAGEMENT

- Move to breakeven once it has reached the same amount of pips as your sl.


*Please note that the only thing that may cause confusion is from which swing low or high to draw the fib retracement, but if you trade for at least a couple of month you should get around it pretty easy.

*Please i'm just sharing what is working greatly for me, as i shared with my friends, i have no intentions to compare or claim that i'm better then no one or have made a better system to any other.

*Please note that im not fluent in english, and please NO DISRESPECT TO OTHERS in this thread. Cheers

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similar to how i trade but your entry criteria is a bit unclear to me. On the third picture shown, it only reached 38.2? Also, you enter at the close of which candle? Do you enter even if the candle closed at the opposite direction with your trade? Eg when you want to long, but candle closed bearish but it reached 50 fib and stoch is at 20?

 

Thanks<3 Very nice!