Trading Systems
Trading systems have been used all over the world for centuries, why are they so popular you may ask? Well it's because of the many benefits the trading systems provide such as providing entry and exit points, taking the emotion out of trading, having a plan to follow, knowing your risk and reward ratio.
Today we are starting a series of blog posts looking at the 1 Hour Trading System. This is a simple but effective trading system that uses the first hour's range of the market to determine the day's potential trades.
How the 1 Hour Trading System Works
The concept is straightforward:
- Wait for the first hour of trading to complete
- Note the high and low of the first hour
- A break above the first hour high triggers a long entry
- A break below the first hour low triggers a short entry
- Stops and targets are set equal to the first hour range
1 Hour Trading System Day 1 - 17th August 2015
Today's first hour had a 42 point range on the FTSE 100.
The First Hour High: 6534.22
The First Hour Low: 6492.55
Long entry is 6535...Target 6577
Short Entry is 6492...Target 6450
Stops are 42 points and Targets are 42 points for Today.
This falls into the acceptable points range so a trade would have been placed today.
(Charts created using MetaStock Pro 14, Try it now for free for 2 months - MetaStock Free)
by ronnie | Tuesday, 18 August 2015