How do you go about getting your final outcome numbers? What parameters are you using?

I received the above comment on the blog and wanted to use the opportunity to further explain how I would have used the trade focus number(s), taking EURUSD as example, while I simultaneously answer the question. Please look at the enclosed M15 chart below:

The alert on the Trade Focus Number for May 6th suggested to look for buys above 4620 (upper Aqua horizontal line) and sell on break of 4505 (lower Aqua horizontal line). PA never broke above 4620 and the high it ever made was 4588 (yellow horizontal line). It is obvious we are in downward retracement, and would be looking for only short entry(s) on break of the trade focus sell number. PA initially tested this number without breaking it (see the red rectangle/box); but just before US session opened PA started to dance around 4505. I personally do not trade 30 minutes before and after high impact news reports, and this being the NFP day, would always wait until after the report.

My setup candle (A) is always the one that breakthrough the focus number, and the next candle will be my trigger candle (B), provided:

1.    PA closes below the trigger candle by some few pips;

2.    I have 3 consecutive TFs moving in the direction of my intended trade;

3.    The CSM shows the Euro as weak and the Dollar as strong (difference between both must be at least 4)

4.    MACD/QQE is below zero.

I will confidently and without hesitation enter the trade.

Trade Management

1.    I am only interested in taking low risk trades since I have 28 pairs to choose from. The spread doesn't matter to me, as long as I see momentum in the pair of interest, and the CSM hints me of potential strong and weak currencies and this can also be verified from correlated pairs;

2.    I will enter trade @ 4496, few pips below the close of the setup candle;

3.    Stop will be few pips above the setup candle @ 4526 plus spread. I have confidence that this point is okay for the trade because PA did not made any new highs above that point for the last 7 candles;

4.    PA moved 80 pips on the next 2 candles and could have taken profit and called it a day, for a Friday trade. I would move my stop to breakeven plus 3 and after that, move it to the next 2 candle high behind PA, to trail my stop until taken out.

Now to answer the comment left on the blog:

How do you go about getting your final outcome numbers? What parameters are you using?

I pick the high or low made after the break of the trade focus numbers, to show the potential pips available that could have been made.

Our goal is to highlight potential breakthrough/breakout points and if supported by the "experienced" trader's filters, and multi timeframe analysis, should generate consistent pips daily. Personally, I am not married to any currency pair as the CSM will always highlight where the action is.

Thank you, and God bless

George

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