How it works:
Price naturally reacts off key support and resistance levels whether they are moving averages, trend lines or fibonacci levels. On a single time frame, you can already see them reacting even for a brief moment, sometimes it works and sometimes it doesn’t.
Now imagine combining not 1, but 5 time frames together and waiting for price to react off their combined moving averages, trend lines and fibonacci levels. The chances of price reacting to those key levels is extremely high.
What if it is during strong overbought/oversold zones? It would be supremely high.
Passive Trade (basic):
The most basic strategy (and with the highest probability of wins) is called the Passive Trade setup. This occurs when price is in the passive zone (red/green area) and it has hit a point of resistance such as pip walls (which are those -xx- numbers you see) and fibonacci pivot points (those pink and link green dotted lines)
Here’s an example of how I would enter trades based on this particular matrix :
Passive Trade – Sell/Buy Entry
- Wait for the red (overbought) for sell entries and green (oversold) for buy entries.
- Wait for a pip wall across at least 1 time frame as long as it’s not on the 1 minute lane. The more pip walls in a row, the better. The pip wall can be on the 5m, 15m, 1h or 4h time frame. Naturally, we will look for areas of stronger resistance where there are more pip walls and even fibonacci pivot points.
- Enter the trade and let the Galaxy Trades Manager handle it for you
It is important to have good position management. I have coded the “Galaxy Trades Manager EA” that automatically, within a split second, helps you set your TP, SL, trailing SL and helps you scale out of positions.
To my experience, this is the best position management tool there is because it removes a lot of the emotional element there is in adjusting TP and SL levels which often come back to bite us.