What is buy and sell line?

<p>It is based on strategies used by Steve Primo.</p><p>The concept is to use TREND&gt;PRICE ACTION&gt;MOMENTUM to get your trading consistent.</p><p>We identify a trend, we wait for a retrace, then a signal the retrace has ended and finally momentum back in the direction of the trend.</p><p>RULE 1 TREND</p><ul><li>IF PRICE IS ABOVE THE 50SMA WE WILL ONLY LONG.</li><li>IF PRICE IS BELOW THE 50 SMA WE WILL ONLY SHORT</li><li>IF THE 50SMA IS FLAT OR PRICE IS CHOPPING ABOVE AND BELOW THEN THE TRADE IS HIGH RISK AND YOUR WIN RATE WILL BE AFFECTED.</li></ul><p>ideally we are looking for a nice slope on the 50sma showing a sustained trend in one direction...</p><p>RULE 2 PRICE ACTION</p><ul><li>BULLISH ENGULFING FOR LONG, BEARISH ENGULFING FOR SHORT. WE CALL THIS A SIGNAL CANDLE.</li><li>OPEN AND CLOSE OF THE CURRENT BAR MUST ENGULF THE OPEN AND CLOSE OF THE PREVIOUS BAR.</li><li>IF PRICE ENGULFS MORE THAN 1 PREVIOUS BAR IT IS A STRONGER SET UP.</li><li>IF PRICE BARELY ENGULFS THE PREVIOUS BAR IT IS A WEAKER SET UP.</li><li>AVOID H1 ENGULFS BETWEEN NY CLOSE AND ASIA OPEN.</li></ul><p><br></p><p>RULE 3 ENTRY</p><ul><li>PRICE MUST TRADE 1 PIP LOWER THAN THE LOW OF THE SIGNAL CANDLE FOR SHORTS</li><li>AND 1 PIP HIGHER THAN THE HIGH OF THE SIGNAL CANDLE FOR LONGS.</li><li>(dont wait for this candle to close, once you exceed the high or low enter the trade)</li><li>IF YOU ARE USING PENDINGS ALLOW FOR SPREAD.</li><li>ENTRY MUST BE TRIGGERED ON THE VERY NEXT CANDLE</li><li>WE ARE LOOKING FOR MOMENTUM BACK IN THE DIRECTION OF THE TREND.</li></ul><p><br></p><p>RULE 4 STOP LOSS</p><ul><li>STOPS ARE PLACED 1 PIP ABOVE THE HIGH OF THE SIGNAL CANDLE FOR SHORTS.</li><li>1PIP BELOW THE LOW OF THE SIGNAL CANDLE FOR LONGS.</li><li>RULE 5 POSITION SIZING</li><li>ALL TRADES SHOULD HAVE A RISK OF 2%, REGARDLESS OF PIP SIZE YOU MUST ADJUST YOUR LOT SIZE SO YOUR RISK IS EQUAL ON EVERY TRADE..... VERY IMPORTANT !!!!!!!!</li></ul><p><br></p><p>RULE 6 TRADE MANAGEMENT</p><ul><li>YOUR TARGET SHOULD BE 1/1</li></ul>