Example of a inside bar + false break trade
Here is an example of a profitable trade that closed out today for a 2R gain.
I currently have an open order on the USDCHF with a simular setup. See linked idea.
The setup consists of the following elements:
In this example the break was a well formed pinbar and I therefore placed a limit entry order at the 50% retracement of the pinbar.
Stop was placed above the high of the pinbar.
Profit target was placed at two times the distance of the stop, giving a R2R ratio of 2. Target also nicely lined up with the bottom of the consolidation / mother candle of the inside bar pattern.
Learn more about my trading at: https://www.davetromp.net
I currently have an open order on the USDCHF with a simular setup. See linked idea.
The setup consists of the following elements:
- strong / clear preceding trend
- consolidation in the form of one or more inside bars
- a false break out of the consolidation, thus rejecting the counter trend direction
- place a trade in the direction of the preceding trend
In this example the break was a well formed pinbar and I therefore placed a limit entry order at the 50% retracement of the pinbar.
Stop was placed above the high of the pinbar.
Profit target was placed at two times the distance of the stop, giving a R2R ratio of 2. Target also nicely lined up with the bottom of the consolidation / mother candle of the inside bar pattern.
Learn more about my trading at: https://www.davetromp.net
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