What is the Squeeze
Before I get into what "the Squeeze" is, I want to thank everyone that has sent positive comments about the website. (I’d equally appreciate negative comments as well) I’m glad it has been able to help you in your quest to become a Forex trader. In addition, the visitor traffic to the site has been improving by the day which motivates me more to post worthwhile content.
The Squeeze is actually a pretty cool setup that can be used for both day trading and swing trading. Some of you may have already heard about it from John Carter’s website, "Trade the Markets." The Squeeze particularly takes advantage of quiet periods in the market when volatility has decreased.
John Carter has turned The Squeeze into an indicator but it isn’t free. You can create the indicator yourself if you have Bollinger Bands, Keltner Channels, and any momentum index oscillator. The real disadvantage is that you have increased the number of indicators on your charts and if anyone has seen a Keltner Channel before, it’s not easy on the eyes. Whereas Bollinger Bands are smooth, the Keltner Channel is jagged. You can use the default setting for both of these indicators and a 12-period for your momentum oscillator. The oscillator is used to indicate whether you will go long or short. [Continue reading by clicking Read More]
Week 5 Performance
This week was my most profitable since I started "the project" 5 weeks ago. I profited 289 pips for a total of $2450. This was a 22% increase of capital.
By week, here are my profit % of balance:
week 1 +6.5%
week 2 +7.0%
week 3 -0.5%
week 4 -2.0%
week 5 +22.0%
I made a lot of my trades this week using the 30, 60 and 240 minute charts of 5 currency pairs: EUR/USD, USD/JPY, USD/CHF, GBP/USD, and GBP/JPY.
I relied on making trades near or at support or resistance mostly using CCI, RSI, and momentum as confirmation along with a couple of other indicators. I don’t know if you would call this a trading system but nevertheless, this has worked for me over the weeks.
1. Identify support/resistance on 240 minute or daily chart
2. Draw upper/lower trendlines on RSI and CCI indicators of 30/60/240 minute charts.
3. If bounce off CCI trendline, take the trade direction of bounce
4. Confirm furthur with RSI and momentum
5. Place stop (1 pip + pip spread) above resistance. If the stop is at a round number move the stop another pip; same process for support
6. Use fibonacci or 8/21/50/100/200 EMA’s to set target price for exit
This method is nothing new or exciting. I’m applying very common principles here.
I hope everyone had a great trading week. Let’s do it again on Monday. Have a good weekend.
