Entry by dropping the high/low lines drawn on the higher timeframe to the 1-minute chart — scalping method after a breakout [Tomoki Kuramoto]

Chikuma Tomoaki Kuramoto Profile

A short-term trader who holds a master’s license in calligraphy. Strong at riding trends with scalping methods. Provides detailed explanations of his own methods on his YouTube channel.

Twitter：https://twitter.com/KuramotoFX

YouTube：Chimei-ryu FX

Key Points of the Method

• Strategy: Purely long trades aiming for breakouts of lines drawn on higher timeframes
• Trade timeframes: 1-minute, 5-minute, 15-minute, 1-hour charts
• Technical: 900 EMA on 1-minute chart, 1200-period Bollinger Bands, Fibonacci ratios

New

• Draw high/low lines on higher timeframes (e.g., 15-minute). If a trend appears, also draw high/low lines on the 1-hour chart
• Enter on 1-minute chart with pullbacks and reversals after a breakout or trend reversal

Stop Loss

• Look at drawn high/low lines and place stop-orders using Dow Theory as a reference

Take Profit

• Based on ranges and high/low price ranges, place limit orders using Fibonacci ratios as a guideline

※This article is a reprint/edit of an article from FX攻略.com, June 2020 issue. The market information described herein may differ from current market conditions, please note.

※Here we illustrate long positions in a rising market; in a falling market, the rules would be the opposite for short positions.

Identify Environment on Higher Timeframes, Enter on Lower Timeframes

Chikuma Tomoaki Kuramoto, a calligraphy trader who excels at trend-following, practices a scalping method after a breakout.

Entries are made on the 1-minute chart, but the high/low lines that define the breakout are drawn on higher timeframes like the 15-minute chart. Additionally, the values of technical indicators displayed on the 1-minute chart are based on higher timeframes to enable multi-timeframe analysis. Fibonacci ratios are also used to gauge profit targets and prevent whipsaws.

Kuramoto uses the active European to NY markets from around 16:00 to 27:00 as his basic trading window, aiming for substantial profits with this trend-following method.