(submited by TT)
I use 1 H timeframe on GBPUSD pair. In addition I also use ZigZag indicator which is main tool of determining swing for me.
How Zigzag (default setting) works, is that it creates spikes. I enter the position by placing pending order on both peaks, expecting the price to penetrate one of them and continue its journey in the direction of the breakout. After position entry I cancel untriggered pending order.
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Stop loss and take profit.
Stop loss is placed at opposite peak. With take profit, I prefer to close smaller trades more often, to keep my morale high. Most of the times I use about 1/3 -1/2 of the swing (straight line calculated by zigzag forex indicator).
Tip: consider major trend and support resistance levels
I trade this strategy with reasonable profit for about 10 months. Give it a shot and let me know how you like it.
TT
