Hi JPYGBP,
I use a very similar strategy to yours. I also went the way of looking at the Daily chart for trend direction. That will give you a long term trend direction. To get the intermediate term trend direction I look at the 60 minute chart with a 20 simple moving average. When Price is above the 20 simple moving average I look to go long. And when price is below the 20 Simple moving average I look to go short. However trading on the 1 hr chart gives me the feeling of being divorced from the action so I go to either the 5 minute or the 15 minute chart. If I use the 15 minute chart I place a 70 simple moving average on the chart. If you look at a 60 minute chart with a 20 SMA and you will see that the points where the 20 SMA crosses are the same crossing points a 70 SMA will give you on a 15 minute chart. The benefit of this is: you can use a 15 minute chart with a 70 SMA giving you the same story as a 60 minute chart without having to switch time scales all the time. NOW you can look to go long above the 70 SMA and look for short trades below the 70 SMA.
NB! the 200 SMA on the 5 minute chart does the same the above. You can therefore look for more timely entries on the 5minute chart with a 200 SMA during those break-out periods.
Incidently a good way to tell direction of the break-out from the western overnight consolidation period is to use the Williams %R with 56 periods. IT will usually LEAD the way for the direction break-out. Experiment and enjoy!
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