According to me, there are 5 types of markets.
120% buy is when the Maroon channel is above the Green River and price makes swing lows that reach below the Maroon Channel by 20 pips at most.
110% buy is when the Maroon Channel is above the Green River and price makes swing lows that reach below the Green River by 20 pips at most.
110% sell is when the Green River is above the Maroon Channel and price makes swing highs that reach above the Green River by 20 pips at most.
120% sell is when the Green River is above the Maroon Channel and price makes swing highs that reach above the Maroon Channel by 20 pips at most.
In all other markets there is no trend-edge.
I call the 110% markets as “Second Gear” and the 120% ones as “Third Gear”.
The percentages mean position size – in case you are invested in the wrong direction, it is the hedge size, but if you want numbers, with 200% leverage 10% overdrive would mean 5 mini lots per $1000 equity, and 20% overdrive is 6 mini lots.
Step 1> find the market to trade
Currently (28th of May, 2018)
USD/JPY, GBP/JPY, EUR/USD, GBP/USD, GBP/CHF, EUR/JPY
The spacier the separation of the Maroon and the Green, the stronger the trend. Extra points can be gained by good alignment vs the 4H Lema – lately I call it the Deep Pink.
USD/CAD – where the deep pink is below – at 1.2707
EUR/USD – deep pink above at 1.2136
GBP/USD – D.P. 1.3779
GBP/JPY – D.P. 150.40
EUR/JPY – D.P 131.3399
GBP/CHF – D.P. 1.3343
Now you have 6 pairs. Check their wave structure on 4H. You do not want to try to get in right after a terminal move.
I would disqualify the EUR/USD for it seems to have 5 waves down.
GBP/USD in a similar shoe.
GBPJPY – long in the tooth as well
EUR/JPY This kind of looks like an ABC, and this might reverse the hardest.
GBP/CHF – this might be putting in a head & shoulders, by all means it seems too late.
So, USD/CAD is the only viable candidate on a pullback.
Buy it after 2 Swing Low prints on the 30-min & cover your long upon a cut appearing above a settled RSI 85 reading.
Optimal entry would be seeing the second swing low (counted from a swing high print) that gets printed in the Maroon Channel or up to 20 pips below. That would be a 120% buy.