ETHUSD PRICE ACTION PIN BAR TRADING STRATEGYPin Bars
This price action strategy will focus entirely on a price pattern called pin bars. This candle is simply the price hitting a certain level and being “rejected” from it. This bar has a long tail on it with a small body.
There are different types of characteristics for a particular pin bar. For instance, the long end of the candle is the wick, while the small end (the opposite side of the body) is called the nose. Most agree the long tail, or “wick,” will be at least two-thirds the total length of the pin bar itself. The other part of the pin bar will naturally be, at the most, one-third of the candle. The open price of the candle and the close should be relatively the same price. This forms the ‘Body.’
To confirm a pin bar, you must wait for the candle to close. Just because the current candle “looks” like a pin bar, does not necessarily mean it is. in the example above, the price movement could have continued upward and closed at the top of the candle. In turn, it would not be considered a pin bar.
Basic Guidelines:
Timeframe - ANY
Market - ANY
Indicators - NONE
OTHER - Trend lines, horizontal lines, support resistance lines (anything to help you find these areas).
Step 1: Find a Pin Bar On Your Chart.
*Note This is a stock price action strategy, and a forex price action strategy. I will use a currency pair as an example. Price action charts are with any market and timeframe.
First, identify a pin bar that has formed.
Step 2: Look for Past Price Action to Determine Why The Pin Bar Formed.
Why did the reversal suddenly hit a price, and then continue back to the upside?
Let’s zoom out a bit on a daily chart. We'll figure out if we can see anything that explains what happened.
Note** you can either look at the current time frame you are on, in this case, a 1-hour time period. Or you can bump up one or two periods to gather information.
Resistance in the past can mean support in the future. What happened is the price hit this level but failed to break through it.
Since the long bullish wick formed, we decide it is time to enter this trade based on what we learned from the prior days.
This is what Price Action is all about. No two trades are the same. However, we can take what we've learned from the past. Then make the best judgment as to where the price is going in the future.
You are essentially like a detective when you trade price action. The point is to gather many pieces of evidence to back up your conclusion. You are trading with confluence. Sometimes simple is best. Study the charts and form an educated conclusion as to where the price will go.
Step 3: Trade entry
You just enter the trade 2-3 pips from the break of the nose of the pin bar.
Step 4: Stop loss
Place the stop loss 3-5 pips away from the wick. The end of the wick will be a support area. So if this is broken the trend may continue downward. Which is why you place your stop 3-5 pips away from this.
Step 5: Exit Strategy
Your exit strategy is when you hit the first level of support or resistance on your chart. As you can see, the price hit a point then stalled out. Once we see the price action stalling out, we exit the trade immediately.
Conclusion - Price Action Pin Bar Strategy
Price action is another fundamental element to learn when trading the market. There are thousands of strategies you can use with price action. It is important to find something that works for you.
These pin bars are hard to miss. They are relatively accurate when you learn why a pin bar formed. Pin bar candles are shown in any time frame. The rule of thumb is, the higher the time frame, the stronger the signals. But that does not mean that this will not work on a five-minute time frame.
Do not trade every pin bar you see that forms. Gather up key information from the charts. Then form the best conclusion to determine if you should enter the trade based on the rules.
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ATR PRE-ENTRY STRATEGYATR PRE-ENTRY STRATEGY
The Average True Range or ATR is a measure of volatility.
Volaltility = the amount the price of a market moves around.
The highly volitile GBPAUD moves in hughs jumps.
It can move a few hundred pips in a single day.
You can win or loss a bunch of money of the GBPAUD.
EURCHF is a very low volaltility market.
Possibly 50 pips in a single days movement.
You can find this out by looking at the ATR.
The ATR is simply an average of the length of the last number of candles
Most use an average of the last 14 candles which is roughly 3 weeks of the price data of most markets.
That will give us an idea if the market is in compression (declining) or expansion (inclining).
The ATR automatically adjusts for time frame market or market compression or expansion. So it is useful for everything.
Including for determining a valid stop loss or target.
Also how active a market happens to be.
How to use ATR as an pre-entry technique.
I look for a decline in volaltility during a corase of a pattern of consolidation to gauage the compression that is taking place in the market during that consolidation.
The market is like a spring. The more you compreise it the more power it generates when the compression is released.
The decline of the ATR during the consolidation means a bigger explosion in the breakout from the consolidation.
NZDCAD 1D BEAR FLAG SHORT TRADEBear Flag is a form of range chart pattern. Ranges are repeatable trading chart patterns.
Flag Ranges are consolidation chart patterns that have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
GBPCAD 1D MA-X STRATEGY
Tim's MA=X trade mgmt
Standard Trade Management Rules
1) If, after entry, the candle closes back on the opposite side of the 20EMA, close for a loss
2) Full Size Position if Vol >= 100% vol avg
1/2-Size Position if Vol >= 75% vol avg
3) Stop-Loss = 1.5 X ATR
1st Target = 1 X ATR
4) 1/2 off at 1st Target for profit - move Stop-Loss to break-even on remainder
ETHUSD 1H INSIDE CANDLE BREAKOUT SHORT TRADEWHAT IS AN INSIDE CANDLE
1. Previous candle engulfs next candle
2. 2nd candle high is lower than 1st candle
3. 2nd candle low is higher than 1st candle
INSIDE CANDLE METHOD
1. Incoming Trend
2. Inside candle - Opposite color
3. Enter Break of Engulfing Candle
Inside Candle method is a great short term consolidation indicator.
If your trade plan contains breakouts and consolidation then this method is for you.
This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look.
On a daily chart it may take weeks for a consolidation pattern to form.
Inside candle represents a pause, consolidation or compression in the market after a big move.
Often you will also see reduced volume on the inside candle.
Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend.
Enter a break of the larger engulfing candle in the direction of the break.
Enter with a Stop Order a few pips above or below breakout level.
Which trades you take is a matter of preference.
Some like reversal trades or trend-following trades.
Scalping in doesn't matter what direction you may go.
Trend following you will want to see this in the context of a larger trend.
Take all the trade setups and just shut down the ones that don't perform.
Trade Management: Enter 2 trades
Stop Loss is 1.5 x ATR for both trades
First Take Profit is 1 x ATR for 1st trade
2nd trade there is no take profit.
When 1st TP is hit move 2nd trades SL to breakeven.
Let profit run on 2nd trade by following/trailing SL.
If a candle closes back inside the larger engulfing candle close down trade.
Watch for a setup for the next breakout.
EURUSD 1H INSIDE CANDLE METHOD BREAKOUTINSIDE CANDLE STRATEGY
What is an Inside Candle
1. Previous candle engulfs next candle.
2. 2nd candle high is lower that 1st candle.
3. 2nd candle low is higher than 1st candle.
INSIDE CANDLE METHOD
1. Incoming Trend
2. Inside Candle – Opposite Color
3. Enter Break of Engulfing Larger Candle
Inside Candle method is a great short term consolidation indicator.
If your trade plan contains breakouts and consolidation then this method is for you.
This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look.
On a daily chart it may take weeks for a consolidation pattern to form.
Inside candle represents a pause, consolidation or compression in the market after a big move.
Often you will also see reduced volume on the inside candle.
Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend.
Enter a break of the larger engulfing candle in the direction of the break.
Enter with a Stop Order a few pips above or below breakout level.
Which trades you take is a matter of preference.
Some like reversal trades or trend following trades.
Scalping in doesn't matter what direction you may go.
Trend following you will want to see this in context of a larger trend.
Take all the trade setups and just shut down the ones that don't preform.
Trade Management: Enter 2 trades
Stop Loss is 1.5 x ATR for both trades
First Take Profit is 1 x ATR for 1st trade
2nd trade there is no take profit.
When 1st TP is hit move 2nd trades SL to breakeven.
Let profit run on 2nd trade by following/trailing SL.
If a candle closes back inside the larger engulfing candle close down trade.
Watch for a setup for the next breakout.
ETCUSD 1D DESCENDING TRIANGLE SHRT BREAKOUT TRADEDescending Triangles, Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
HOW TO AVOID A BREAKOUT HEAD-FAKEAVOIDING FALSE BREAKOUTS
1. Declining Volume and ATR/Volatility.
2. Candle Close Outside the Consolidation
3. Significant Volume on the Breakout.
4. If You Get Head-Faked, Close the Trade.
How to Avoid False Breakouts
Prevent a Head Fake
You can't avoid every false breakout. There is no magic formula.
There is no way to know what the market is about to do.
What we do as traders is take advantage of little patterns and clues that the market is going to possibly do a certain thing.
This is all based on probabilities.
These patterns and clues never worked out 100% of the time.
That is why we manage our risk on every single trade because there are no sure things.
There are things you can do to increase the probability that you are not going to get tricked by a false breakout. Lets take a look at them.
AVOIDING FALSE BREAKOUTS
1. Declining Volume and ATR/Volatility. Watch for declining volume & atr/volatility on the consolidation before the breakout. This shows that there are fewer traders willing to risk money that price is staying in the consolidation.
2. Candle Close Outside the Consolidation. Candle closes, especially daily & weekly, are very important events. Day traders like to square their positions at the end of the day. A bearish day trader who is done for the day will close his open shorts which is a buy causing the price to pop up. If price has pushed below the consolidation during the coarse of the day, price will often retreat back into consolidation after day traders square their positions. A daily close below the consolidation means longer term traders are selling. Reverse is true for bullish breakouts.
3. Significant Volume on the Breakout. You want to see significant volume on breakout candle close outside of consolidation. If the volume is declining during the coarse of the consolidation and a volume spike on the candle close outside of the consolidation supports the fact that more traders are interested in the move. Look for the spike to be 100% of the average volume to enter a full sized position. You can enter a ½ sized position if there is at least 75% of the average volume. Use a 20 period simple moving average on the volume so it represents about a month of volume data on most markets.
4. If You Get Head-Faked, Close the Trade. You will eventually get caught in one. If you get a candle close back inside the consolidation, close the trade. You may have another opportunity to get back into the trade from a real breakout. Don't immediately give up on it. Especially if you see the volume and atr/volatility continue to decline. Taking a small loss early on will help you make it up on the real breakout.
AUDUSD 1D BEARISH WEDGE SHORT BREAKOUT TRADEWedges are a form of Range pattern & Ranges are repeatable trading chart patterns.
Ranges are consolidation chart patterns that can breakout either direction.
Ascending Bearish Wedge and Descending Bullish Wedge chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
DISH NETWORK 1D TRIANGLE BREAKOUTTriangles, Descending Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart ).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the volume settings on the chart – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
EURUSD 1D KnowSureThing (KST) BREAKOUT STRATEGYStep #1 Identify a Ranging Zone
Regardless of the time frame used, we define a ranging zone as comprised of two equal highs and two equal lows.
Well, the lows and highs don’t need to be equal.
But, the closer they are, the more defined our trading range would be.
And, the more defined our range is, the higher the chance of a breakout and subsequently to experience a momentum burst.
Once the range is established, we wait for the breakout to generate that momentum burst.
Breakout trading is like trading momentum on the back of your trade.
Step #2 Wait for a Break of the Range
This is self-explanatory!
A range breakout is an explosive move outside the trading range.
In the example given, we can notice a clear breakout that holds above the range resistance level.
This is a breakout of resistance.
We can avoid false breakouts, which means the momentum is drying out pretty fast after the initial breakout. We simply use the Know Sure Thing indicator to track the momentum activity.
Step #3 Check the Momentum Reading on KST oscillator
Once the market breaks out of an equilibrium point, we want to make sure there is enough juice aka momentum for the price to follow through. How much juice the EURUSD has can be observed on the Know Sure Thing oscillator.
Using the KST oscillator, we can avoid false breakouts like a Hedge Fund manager.
We can observe a buildup in momentum as the Know Sure Thing lines are holding above the zero line.
Once momentum is set in motion, a trend is more likely to continue than to reverse. And, once a trend is established and going in full motion it will take a sizeable force to turn the tide around.
Follow your Trade Plan to find your own SL & TP.
ETHUSD 1H BEAR FLAG SHORT TRADEBear Flags are a form of Range Chart Pattern & Ranges are a repeatable trading chart pattern.
Ranges are consolidation chart patterns that can breakout either direction.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart ).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the volume settings on the chart – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
BOSTON BEER CO 1D TRIANGLE BREAKOUT TRADE Triangles, Descending Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
ATR MONEY MANAGEMENT FOR GBPAUD & EURUSD 4H & 1DUsing a set amount for SL and TP for different pairs and time frames is not effective money management.
Using the ATR for a specific pair and time frame lets you custom yur SL & TP for what that pair actually moves.
ATR 1D takes the last 14 candles and adds up then up together and then divides that figure by 14.
Now you have an average of how much that pair moves in a day.
GBPAUD 1D ATR moves 133 pips
GBPAUD 4H ATR moves 47 pips
EURUSD 1D ATR moves 42 pips
EURUSD 4H ATR moves 15,6 pips
This helps me determine a more accurate setting for my SL and TP for the pair I am trading and the time frame I am using.
USDCAD 1D ORB-NR4 STRATEGYORB = Opening Range Breakout pattern
Nr4 = 4TH Candle's daily range is smaller than the previous 3 days.
*Note: The 4th day doesn’t necessarily need to be an inside day, it only needs to have its daily range smaller than the previous 3 days.
What if we told you that 40% of the time the first trading hour can tell you what is the high and the low of the day? If you know that you can define a trading system around it, you can manage your risk and set your targets.
Step #1: Wait until you can spot a bar that has its daily range smaller than the previous three days
The first rule requires you to have the patience until the Nr4 pattern develops on the chart. When we have a daily trading range that is narrower than the previous trading ranges, it means that the price is contracting.
Based on our backtesting results, we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets move from periods of contractions to periods of expansion.
This is the reason why this short-term price pattern is so powerful.
Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame
Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action, we need to switch our focus to the 1-hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day.
Step #3: Buy/Sell only if the breakout of the Nr4 high happens during the first 5 trading hours.
We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days.
Trades based on the ORB – Nr4 pattern will show you a profit instantly.
Now, if the trade is not showing you a profit right away, then your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market.
Of course, you can only do that if your stop loss hasn’t been triggered in the meantime.
Step #4: Place your protective Stop Loss below the Nr4 day low or ATR x 1.5
You can hide your protective stop loss below the Nr4 day low. Alternatively, you can place your stop loss below the current day low as this will give you a better risk to reward ratio.
The ORB - Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined, they tend to produce even more powerful trades.
Step #5: Take profit at the close of the first 1-hour bearish candle
Our take profit strategy is fairly easy and slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel.
Although the ORB pattern tends to lead to trend trading days, we’re more conservative and want to quickly take profits. So as soon as the first bearish candle shows up, we close the trade and enjoy our daytrade profits.
Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the cryptocurrency market.
OR use the ATR x 1 = TP
EURCHF 1D BEARISH FLAG SHORT TRADEBearish Flags are a form of Range chart patterns and they are a repeatable trading chart patterns.
Ranges are consolidation chart patterns that can breakout either direction.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
EURUSD 1D AWESOME OSCILLATOR (AO) STRATEGYLong Trade
AO below Zero Line
AO creates a Low
AO then creates a Higher Low
ENTER after AO bar closes Green
Short Trade
AO above Zero Line
AO creates High
AO then creates a Lower High
ENTER after AO bar closes Red
Stop Loss is 1.5 x ATR
Take Profit is 1 x ATR
1 - Trade Management
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st trade TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
XAGUSD 1D SILVER BULLISH WEDGE LONG TRADEBullish Wedge is a form of Triangle Chart Pattern& is a repeatable trading chart pattern.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
EURCHF 1D HEIKIN ASHI EXIT STRATEGYShort Trade
Step 1 Assume Entry on middle of 2nd bearish candle
Step 2 Assume Exit on middle of Reversal bullish candle
Result 100 pips
Long Trade
Step 1 Assume Entry on middle of 2nd bullish candle
Step 2 Assume Exit on middle of Reversal bearish candle
Result 60 pips
BTCUSD 1D DESCENDING CHANNELDescending Channel is a form of a Range chart pattern. Ranges are repeatable trading chart patterns.
Ranges are consolidation chart patterns that can breakout either direction.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
Can BTC bounce back to $8000 ? I am working on the theory that btc can bounce back to $8000 potentially once the sell off from yesterdays gains has been completed. I am now starting to post alts and btc signals into my telegram channel after taking a break for a while. If you have followed my last analysis you will know that my calls have been doing great, the recent downturn in the market is the exact reason why I keep 80 - 90% of my holdings in stable coins and fiat currency.