9# SRDC Level I Trading System

SRDC Forex Trading Method

Submit by janusTrader (write by Orange Roshan)

 

OrangeRoshan’s SRDC method

This is the simplest way to make profits in forex trading known to me.

Even my grandmother, when she is still alive (bless her soul), can also

trade effectively. It is also very profitable. I think many professional

traders use this method.

 

It can be applied to all trading platform and need very minimal training

or experience in forex. The reason is because this method doesn’t use

any indicator at all. All you need to know is how to draw 3 types of

line:

1) Support

2) Resistance

3) Trendline

Before the Internet trading era, we trade currencies based on

fundamentals and the use of the three lines. Now, I don’t see why we

still cannot use it.

The Daily Chart

Has anyone studied the daily chart lately? I have a friend who trade

mostly on Daily chart only. His name is Warren Buffet, you might know

him! Heheheee….

 


Now, open your daily chart (candlestick preferably) on your favourite

major pair and watch closely. Take 1 minute and tell me what you

notice (Don’t read the text below yet)?

THERE IS NOT A SINGLE BAR EQUAL TO THE BAR NEXT TO IT!

 

Based on this fact, we can safely assume that, the highs and lows of a

daily candles are unique EVERYDAY (daaaaa…).

Now do this:

1) Draw support and resistance on any of the previous bar. For

newbies and JaJa Binks, Support is the lowest price of the candle

and Resistance is the highest price of the candle. Draw

horizontal lines.

2) Do you see the next candle penetrating the lines?

a. YES: That’s your trade

b. NO: No Trade

SHORT when it penetrates the support line and LONG when it passes the resistance

 


In the pictures SRDC Level I forex system in action.

Now do this:

1) Backtest on as many candles as you like, minimum 20

candlesticks

2) Study the number of pips for every available trades (minus

spread)

3) How many candles give minimum 5pips?

4) How many candles give more than 10pips?

5) How many candles give less than 5pips?

Now you have the answer. ARE YOU EXCITED? You should be!

 

HOW TO TRADE THIS METHOD?

The Preparation

Upon the start of a new Daily candle;

1) Draw the Support

2) Draw the Resistance

.on yesterday’s candlestick please!

Draw the trend lines and determine the trend. This way, you can

expect where the price will go. It is either towards the Support

(bearish) or towards the Resistance (bullish).

Taking the trade

It all depends on you, whether you want to babysit the trade or ready

and leave the trade.

Either way, you can still profit from it.

Babysitting – Put a pending stop buy or/and stop sell orders. Wait until

it penetrate either lines, move your stoploss accordingly and deploy

traillock when you have to.

Ready & Leave – Like the above, but with an assign takeprofit and

stoploss. I would recommend a 5pips or 10pips maximum. Why?

Because, some bars only (very few) gives maximum 5pips.This way,

losing trade is almost non-existance!

Things to remember and my recommendation only:

1) Pick low spread pairs because of obvious reason.

2) When placing pending orders, please don’t forget to include the

spread + 1 or 2 pips as an extra precaution. Because

sometimes the force is not with us (don’t want the order to be

executed on the line and the price reverse!).

3) Watch the monthly / weekly highs and lows. I would avoid a

trade when it is near to the H&L. Price might reverse against

your favour before it hits your takeprofit.

4) Don’t trade to many pairs, maximum 3 pairs only, GBPUSD

EURUSD AUDUSD. Why? Your margin might not allow it.

5) I usually use stoploss of 20-30.

English is not my native language so please forgive my Yoda’s

grammer and I hope you find the SUPPORT & RESISTANCE DAILY

CANDLE method helpful and simple to use.

 

Share your opinion, can help everyone to understand the forex strategy.

Write a comment

Comments: 1
  • #1

    triyono (Thursday, 30 July 2020 13:54)

    share

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