The Last Kiss trade. Eurusd The first step of the last-kiss trade is to identify the consolidation zone. One way to visualize a consolidation zone is to draw a box on the chart.
This box will contain the choppy movements of the directionless market. This box should encompass the market movement during the choppy,
drifting-market phase. It should be obvious that the market is stuck between both of the zones. Typically, there will be several touches on either side of the zones.
The last-kiss trade is based on the retouch principle. The market will often come back to a significant zone once the market has expanded beyond the zone, and the last-kiss trade is designed to take advantage of this typical market behavior. The reason for waiting for the
market to come back to the consolidation box is to confirm that the market will, indeed, respect the boundaries that were formed by the consolidation box. In this way, the trader will jump on the trade only when the market comes back to kiss a consolidation box.
Once the market returns to the edge of the consolidation box, it must print a strong candle in the direction of the breakout. Therefore, if the breakout is a bullish breakout (up), then the retouch candlestick must be a strong bullish candlestick. A buy stop is placed above the high of this
bullish candlestick.
