This is a unique trading strategy which utilizes Weekly Charts to detect trend changes as early as possible.
This strategy would allow you to jump into a market that has an established trend, and then has gone against that trend as markets typically do, forming an ebb and flow over time. For this we will be using the weekly chart to figure out our trade setups as per the steps as given below. Here we will be looking for an opportunity to enter in reversal to this established Trend.
Step1 => Open a Weekly chart
Step2=> Look for an established trend ( meaning there are a tleast a minimum of 3-4 candles in the direction of the trend (Bullish candles for Bullish trend and vice-versa). Identify the established trend. We will now look to find an opportunity to trade against the trend by seeking an optimum entry for a reversal trade.
Step3=> Wait for an engulfing candle to form and close. If the established trend was Bullish then the engulfing candle should be bearish and if the established trend was Bearish then the engulfing candle should be bullish.
Step4=> Wait for this engulfing candle to close. When it does open a trade in the direction of the engulfing candle.
Step5=> Now immediately Switch over to H4 Chart and figure out the Highest or Lowest of the last Two Swings, which should be Lower or Equal to High of the Engulfing Candle for a Sell Trade and Above or equal to Low of the Engulfing Candle for a Buy Trade.
Step6=> Trade either gets closed out by StopLoss or by an opposite Signal. You can also choose to close a profitable trade by a trailing stop or when the weekly candle closes outside the Bollinger Bands (using standard settings).