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Hello,
I am a 20-year-old from Vietnam.
I am truly fascinated and enjoy reading the book Trend Following. Although I have not yet been able to fully apply it to my business, I am confident that the method is highly effective.
If you happen to read this message, I would like to ask if the method I am developing is truly aligned with the trend following approach.
Here is my method:
1. Identifying the main trend on the daily chart (1D): I use a long-term Supertrend (ATR Period: 14, Multiplier: 3) and a short-term Supertrend (ATR Period: 7, Multiplier: 2) to identify the main trend.
Enter a buy order when both Supertrends (long-term and short-term) show a bullish signal (green).
Enter a sell order when both Supertrends show a bearish signal (red).
2. Identifying Entry Points on the 4-Hour Chart (4H): I use both the long-term and short-term Supertrend on the 4H chart to confirm entry signals.
Enter a buy order when both Supertrends on the 4H chart show a bullish signal (green).
Enter a sell order when both Supertrends show a bearish signal (red).
3. Risk Management (SL and TP):
SL (Stop Loss): Place the stop loss below or above the short-term Supertrend on the 4H chart, depending on the type of order.
TP (Take Profit): Take profit when the price crosses the short-term Supertrend on the 1D chart. This signal suggests a potential reversal or slowdown of the trend.
Thank you.
T. M. N.
Trend following is not day trading.
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