In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  A ( Solid  ) LONG CANDLE ” Breakout ” On A Daily Time - Frame

2)  And relying on a ” 50.5% Fibonacci Price Pull-Back ” to acheive a  High Probability ( Low Risk…HIGH Rewards ) entry..

Read on below as I share this profitable strategy in a step-by-step manner for You !

Before that……..let me ask You a very interesting question first…

…….That is :

What do You think would happen IF….:

….” Most of the traders ( all over the world ) actually traded in the SAME Direction as You are -  And everything happens in a really SHORT period of time ….? “

What’s Your answer to the above question …?

( It’s ok…..let me help You with it….* smile * )

Yes…………there would definitely be an Incredible & Serious BREAKOUT from the Price Movement in the forex market…

This is so because…….. there would be MASSIVE amount of FUNDS being pumped into the market at the same time SHORTING / BUYING a certain currency pair…

( or at least at very close time intervals …..)

Let me elaborate more on this for You…..

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For example :

——————————————–

If …..MOST of the traders ( Especially those with Very ( VERY ) HUGE Funds & DEEP Pocket )…. also have the bias of SHORTING / SELLING a particular currency pair…..

And IF……….. they SHORT that currency pair just about the same time…. ( or relatively close to each others’ orders )

It means the amount of VOLUMES resulting from their ” ( Combined ) Selling Interests ” would be INSANE & VERY IMPACTFUL…

And when that happens….

What is the ” Most RELIABLE & ACCURATE ” proof we traders can pick up from the forex market to confirm our trading bias ?

YES…….it is none other than a FULL - Body LONG CANDLE formation in the market…!!

These FULL-Body LONG CANDLES formation carry tremendous significant in the forex market infact…..

And could actually IMPACT that particular currency pair for days or even weeks to come….

….Which is definitely a very good news to retail traders like You & ME ! * smile *

Why so ?

Simply because upon spotting such LONG CANDLE formation in the market….

We can then get ready to place our orders and make some Valuable Profits for Ourselves then…!!

Moreover……….

…….the best thing about such LONG CANDLE formation is that it is very ” Reliable & Accurate ” to help derive our BUY / SELL Signals…

This is especially so if such LONG CANDLE formation is spotted on the BIGGER time-frame such as the ” Daily “.

This is what exactly happens to the NZDUSD a few days back ( while writing this forex strategy to share )….

……by deploying my ” Long Candle Formation + ( 50.5% ) Fibonacci Price Pull-Back ” strategy…

I have managed to nail a nice 200 PIPS out of this NZDUSD ” Bearish Breakout “ - By relying on the LONG CANDLE formation !

So in this article, I will be showing You in a step-by-step manner of how I actually did it as well.

So without much further ado…

Please fasten Your seat belt……and let’s get started now ya !

Trust me……You are going to love this ( extremely  ) Profitable forex strategy based on
LONG CANDLE ( breakout ) too…. * smile *

Unless You are one odd trader….. that DO NOT like to make profit from the forex market
( for some odd reason that is ) ……* frown *

Alright….( alright )……..jokes aside……let’s go now.

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A Forex Strategy Combining ( Very ) LONG CANDLE Formation…..& ” Fibonacci Price Pull-Back ”

( Again….this is indeed another Very Profitable strategy with minimum risk….BUT Offering HIGH Rewards ! )
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The LONG CANDLE formation happened in the NZDUSD ” Daily ” time-frame..

When I saw this ( Bearish ) Long - Candle…..

…..I KNOW there are really good Profits ( Pips ) awaiting to be grabbed from the market soon..

It is just a matter of ” waiting ” for the proven ” Low Risk ….HIGH Rewards ” set-up to be shown before I jump in and open a position to SHORT..

Here’s an illustrations of the exact set-up I saw on the NZDUSD to share :

This Long Candle being spotted is UNLIKE others in the market in fact.

As You can see on the illustrations above too….

The length is ” Exceptionally LONG “…..and with a FULL WHITE ( Bearish ) body..

Very serious implications with that…..and it definitely carries immerse amount of Weight
in the forex market..

To put it in lay man’s terms…….it means HUGE SELLING orders have been placed into this NZDUSD currency pair…

And to be exact…..these HUGE SELLING orders are attacking on the NZD currency …

Why I know that ?

Simple !

Just compare other major USD crosses such as the EUR/USD, GBP/USD or AUD/USD…

And the weird thing is that I am NOT seeing such ” Exceptionally LONG CANDLE ” formation on them…

So it is common sense that NZD is the one being attacked with such MASSIVE SELLING orders…

* smile *…

Well……with such confirmation…..do You know how Happy & Excited we should be as retail traders ?

We should be ” Extremely Happy ” in fact….

Because when such FULL-BODIED Long Candle is being spotted on a ” Daily ” time - frame….

The Profit potentials that follow would be HUGE !

….A LOT of Valuable Pips to be grabbed by You and Me…..! * smile *

( when You know ” HOW ” …that is )

However….just like the other Profitable Forex Strategies that I shared previously…

With all that information……..it is STILL NOT good enough for us to jump in to SELL yet…

You would need to wait for other ” better ” set-up so as to achieve a LOW RISK …& HIGH REWARDS potential.

Next coming up….I will be explaining ” everything ” You need to know on that …

So read on below for the exact ” Important ” details…

When such Price Breakout occurs in the forex market …..and resulting in a LONG CANDLE formation…..

…..A Trend would most likely develop too after…

( In this case, it would be a down-trend obviously since it is a WHITE ” Bearish ” CANDLE )

Here’s the illustrations to help You recap again :

So the very next thing upon spotting such Long Candle Breakout is to wait for the Price to ” Pull-Back / Retrace ” to a certain Fibonacci level…

Where Fibonacci Levels are concerned…..there are a few different levels namely :

- 23.6 %

- 38.2 %

- 50.0 %

- 61.8 %

- 100.0 %

A few levels for one to decide on…

Selecting TOO LOW a level……You would fear that the price would clear further and hit Your Stop-Loss…

Selecting TOO HIGH a level………it would mean it is actually a ” Reversal ” and NOT a Retracement/ Pull-back anymore…

These situations could be rather confusing if You are NOT understanding the bare essentials about Fibonacci trading tool ” adequate ” enough…..

In fact……….most struggling traders somehow already know that watching Fibonacci levels for retracement is proven reliable for achieving entry with ” low risk & high rewards “…

However……….the thing that make them confused ( most of the time ) is deciding on the RIGHT FIBO LEVELS for their entry…

So how then ?

Not very tough on this one actually…

Since we don’t want too low….

Don’t want too high either…

Then we just go for the ” median ” then….

Which means between the 50% - 61.8% FIBO levels would be a good region to watch for potential ” entry point ” to SHORT again !

As the saying goes……a picture speaks a thousand words !

So…..

—————————————————————————————————————-
Let me show You exactly how I did it with this NZDUSD trade next…..( with illustrations ! ):
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Since this LONG CANDLE has been spotted on the ” Daily ” time - frame..

And now that the price is beginning to ” Climb ” up again…

I am going to drop to a smaller time-frame so that I can watch the Price Actions in a much clearer view…

At the same time….monitoring ” HOW ” the Price Actions behave when they hit the 50% - 61.8% FIBO level….

Let me first show You how it looks like when I plotted the FIBO level :

( on the 4 hourly time-frame )

As You can also see above…

The price is still climbing to the 50.0% level..

So we couldn’t do much except to ” WAIT “….

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Perhaps some of You guys would be wondering on this question too :

“…But Aaron….what if the Price DID NOT reach the 50.0% Fibo Level and it Plunged down again ?  It means we are going to MISS this move ?  ( and the profits as well since we are still waiting for the 50% fibo level to be reached  & Did NOT enter the trade….?)

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I know many readers ( mostly newbies or struggling intermediates ) would be wondering on this aspect as well..

Very normal especially for those whom are new to Price Actions trading and Fibonacci Retracement Strategies..

Here’s my answer for You guys whom are wondering about this aspect :

” There is really NO point RISKING entering at a much lower level than at least the 50% Fibo level …..because most of the time, the optimum levels to watched for are the 50% and 61.8% levels…..

( most professional traders, banks and major institutions watch for that levels too ….)

In fact….any levels lower than the optimum 50% & 61.8%……the risk of getting a stop-loss hit is very ( very ) high..

On the other hand……if the price has reached the 50% & 61.8% levels ……the profit potential is much higher as compared to the lower levels..

( because the more it retraced previously…..the more it would move IF the trend continues….)

Not forgeting that the Stop-Loss needed would be much LESSER too…

Thus allowing us to achieve a  ” Low Risk & High Rewards ” ratio for this trade..

So aiming for the 50 - 61.8% region for retracement would be profitable most of time when combined with good money management + good reward / risk ratio entry !

* smile *

——————————————————————————————————————-

1)  So did the price hit the FIBO LEVELS ( 50 - 61.8% ) I wanted….?

2)  What do I ” based on ” before committing into a SELL order then ?

——————————————————————————————————————

Let me answer part 1 first for now :

The price has indeed climbed to the levels between the 50% - 61.8% levels after that..

But it soon fall back ( lower ) again…..

Upon seeing the ” Price Hit & Fall Back Lower Again “…situation

It is already good enough to consider that the ” optimum retracement level ” has been satisfied…..

Here’s an illustrations to help You understand more :

With that ” Optimum Retracement Level ” satisfied…

What did I look for next before I commit my entry to SHORT this trade  then ?

Nothing complicated though……

Since the Price has reached the 50% - 61.8% levels previously…

And it is maintaining slightly below the 50% level now….

At the same time….it means it has formed a ” Lower LOW “ in the market now too..

Here’s the kind of  ” Lower LOW ” I Mean after the Price Fall Back :

( if You dropped to the next smaller time-frame which is the 1 Hourly….You can see this ” lower LOW ” even more clearly ….)

And upon calculating the Stop-Loss needed…

Based on the  ” Lower Low region “  to SLIGHTLY ABOVE the 61.8% level..

I came to the conclusion that a 60 Pips Stop-Loss would be needed …..

( …and it is placed at a level ” strategically ” enough to avoid getting hit Unneccessary ! )

With the critical Stop - Loss being calculated..

Of course I would also need to calculate the ” Potential Rewards “ as well…

So that I can guage whether the ” Rewards / Risk ” ratio is WORTH IT after all……or not.

For the Profit Targets strategy….I will be executing exits on 2 different Take - Profit levels.

1st Take- Profit Level = 80 Pips ( which is slightly above the recent low )

2nd Take - Profit Level = 80 Pips x 1.5 = 120 Pips

IF this is a proper TREND Continuation…..120 Pips target would be hit realistically….

Simply because a LONG CANDLE breakout is ” Really IMPACTFUL “….

And there would be a lot of traders waiting to jump in and SHORT big time too ! * smile *

So considering my Stop- Loss is 60 Pips….

And Profit Potential is  80 Pips ( 1st Target )….120 Pips ( 2nd Target )…

It is obvious that I can achieve a good ” Rewards/ Risk ” ratio for this set-up…

And what do I do next then?

Enter and SHORT this trade of course !!! * smile *

Here’s an illustrations showing the details ( Short Entry, Stop-Loss & TP )  for You to understand more :

As I am executing the ” 2 Exits ” strategy for this trade..

Once the first Take - Profit level is hit ( +80 Pips )…

I will then shift the Stop-Loss for the 2nd position to the Break-even point.

This is to ensure that even if the trade were to reverse….I am still a WINNER for this trade….* smile *

Even if I am in 70+ Pips profits already …..and it’s time for me to go to bed..

I will just manually exit the 1st position with 70+ pips Profits…

And just shift the 2nd position Stop-Loss to Break-even too.

Difference of a few pips is not very important as I have already Profited from the 1st position - That is more important !

Of course….this is to ensure that I can sleep ( even more peacefully ) knowing that even if the trade reversed on me…..I am already a winner from the previous 70+ Pips Profited !

* smile *

Very essential to do what it takes to ” Protect & Secure ” our Profits for long term GAINS !

Agree ?

Alright….so how does this trade eventually turns out for me then ?

Here’s the answer :

Did You notice some amazing pattern of the Price Actions from the illustrations above ?

The price did NOT plunge down straight away actually..

It trades lower….and lower in a very progressive manner……UNTIL…

When the price ultimately cross the ” half-way point ” of the full retracement…

Only then the price plunged down seriously in a very INTENSE ACCELERATED manner…

Just look at the FULL ( WHITE ) LONG Candle that formed from that point onwards….

…You will be able to feel the amount of SELLING PRESSURE then too…

So bottom line is that NEVER underestimate the Power of a FULL- BODIED LONG CANDLE  in the forex market….

( Especially on the bigger time -frame such as the ” daily ” like what I spotted for this trade on NZDUSD )

I executed the exits in 2 different price levels….

1st TP is 80 Pips …( at price 0.74435 )

2nd TP is 120 Pips…. ( at price 0.74035 )

Definitely a nice amount of Pips to be grabbed from the forex market…..

And all thanks to the LONG CANDLE formation that provide me with the ” reliable & accurate hint “  though….* smile *

Here are the 2 earnings screen-shot ( with Entry, Stop-Loss & Tp ) to share :

1st Take - Profit Earnings ( 80 PIps ) - Usd $2,410.50 Profits :

2nd Take - Profit Earnings ( 120 Pips ) - Usd $3,610.50 Profits :

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My Important Conclusions For You :
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……Since You and Me ( as retail traders ) simply DO NOT have access to any of the so called ” Insiders’ Information / Tips ” from the Government or any Hedge Funds with HUGE Funds that are capable of moving the market at will..

Hence……the only trading decision that we can grab hold of is purely from the technical analysis charts…

And with that….it is really ” good enough ” for us to make very nice and consistent profits ….each and every month from the forex market in fact…

Besides relying on the more Powerful Price Actions in the market for our analysis..

One really ” Impactful , Reliable & Powerful ” HINT to help with our analysis is by trading off the FULL-BODIED LONG CANDLE forming in the forex market…

Here’s why :

When a LONG CANDLE ” actually formed ” in the forex market……

…..it significantly reflects ” Huge Interests & Trading Volumes “ ……from majority of the traders..

( Especially those with ( Very ) Deep Pocket & Funds )

So any LONG CANDLE appearing in the market….

( especially on the Bigger time-frame such as the Daily or Weekly……we better treat them with a certain respect as it is giving us a very SOLID HINT of the next BIG MOVE….)

And when You ALSO ‘ Know ” HOW to trade such LONG CANDLE…..the rewards are indeed very lucrative each time……..as well as in the future trading days to come !

No doubt about that ! * smile *

So if You are one such trader who ” has NOT ” master the art of trading with such ( Profitable ) LONG CANDLE formed in the forex market yet….

Then You could be MISSING out on the valuable Pips ( Profits ) on the table that is….when a LONG CANDLE formed again in the market…

( Maybe tomorrow…. ? )

Really worth spending the effort to fully understand and eventually master a trading strategy that help YOU take advantage of such LONG CANDLE …..

It could be considered one of the most ” Powerful form of Price Actions “ in the market available to You and me ( as retail traders ) indeed….

Simply because it involves MASSIVE Amount of VOLUMES & Interests that are driving the price around…

Master it….and You will enjoy the tremendous benefits in the days to come too from the forex market ! * smile *

…..In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  Price ” Bouncing ” Off  A ( Down ) Trend - Line

2)  And Then….. Relying on a ” Bullish REJECTION Zone “ To Acheive A  High Probability ( Low Risk…HIGH Rewards ) Entry..

Read on below as I share this profitable strategy in a step-by-step manner for You !

For a ranging market… ( or the so called Sideway market )…..

We would use a ” Horizontal Line ” to mark out the the important Resistance / Support levels….

Well…that is for a Ranging Market though……BUT how about a ” Trending ” market.. ?

Hmmm….You still can use a Horizontal Line for a Trending market somehow…..

HOWEVER…..by doing that….

….. You would most likely be getting many FALSE signals from the market as the resistance points would be shifting higher & higher…( for an up-trend )…

…as well as seeing Support points ….shifting lower & lower…( for a down-trend )..

So by using a Horizontal Line for a Trending market….it is NOT beneficial at all to help with Your market analysis..

On the other hand…..if You know how to use a Trend-Line ( and NOT a Horizontal Line ) for a Trending Market..

It could help You Pin-Point ” High Probability Turning Point “ to get into the Trend again…..in order to achieve a Low Risk & HIGH Rewards trade.

Which also means You can ” Project A Future Turning Point ” way in advance when You see the Price coming close to that Trend-Line ( once ) again….

( which I would be showing You on this technique below later )

In any trading game, we are ONLY interested with ” Predicting Future Market Movements “…

Because only by accurately doing so……we can then nail those valuable Pips & make Profits out of our trades……( again & again ! )

Agree on this too ?

BUT….

If You’re still unsure on - How to fully  make good use of such trend-line strategy yet ….

…OR simply NOT confident about it at all ( though You have been reading up about it )…

Then after reading this entire strategy today……You will truly benefit tremendously from it.

This is an exact forex strategy that I use to nail 80 Pips Profits on the USDCAD ….( while ONLY risking half the risk at 40 pips )

Ask any trader is this a good risk/reward ratio….

I am sure they would ” agree ” too….* smile *

Alright…let’s get started now ya.

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A Forex Strategy Combining ( Down ) TRend-Line …..& ” Bullish Rejection Zone ”

( Indeed a Very Profitable strategy with minimum risk….
BUT HIGH Rewards !  …And You can use on Any Pairs too !)
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The best way to understand & master a particular trading strategy is to learn it through Step-By-Step explanations……..right ?

Not really though !

I personally think that it is more beneficial to learn it in such a way that ..” You’re also SEEING…….what I am seeing in the market “…

…And more importantly - ” Before the actual Set-up is complete formed ! “

This is essential so that once the ” Proven Set-Up ” is completed in the market…You’re all ready to go in then..

If I just show You the ” Completed ” Set-Up…..instead of the ” before forming ” situation..

Then when You try to use this strategy in the forex market Yourself..

It could pose a challenge to You then…..as You’re NOT sure what to ” expect ” …

And so….. Your inconsistent confident level would be a major hindrance while You’re trying to mater this strategy ….

(…and would definitely prevent You from reaping the full benefits from this strategy.)

So just like all the previous forex strategies I shared with You guys..

This time round I am going to show You in such a manner :

=> From the ” before forming ” to …” ENtry “….to ” Taking-Profit “ & Winning the Trade at last !

Cool ?

Here we go….

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This is the ” Exact Situation ” I saw on the USDCAD ( 4 hourly ) for a start :

—————————————————————————————————————–

Upon opening up the USDCAD ( 4 hourly ) chart, I saw the Price approaching the ” Top Limit ” of the Down Trend-Line once again…

When this happens…

I know there is a potentially good ” SHORTING Opportunity ” coming soon for this pair..

Like This :

So upon seeing this ” Price Approaching Trend-Line ” situation..

What should You do next in order to…….. prepare Yourself to look for some good ” hints ” from the market to confirm Your ” SHORTING ” bias then ?

Simple actually…

Just drop down to the ” Next Smaller ” time frame - Which is the 1 hourly for this case..

And then look for a ” Bullish Price Rejection Zone / Set-up “…

There are many such ” Rejection Zone / Set-Up ” You can take advantage of to confirm Your bias to Short / Sell actually..

But for the purpose of this strategy, I will just reveal the exact ” Rejection Zone ” that I use to confirm my bias.

I could not share ALL the ” rejection zone / set-ups ” merely with this short article today..

Which I think You can understand on that too …

In the days to come…..

…. I will share them one by one ( and explained them in the form of ” simple to understand strategy ” for You guys )  as I come across in my own trading …

( This is definitely one major benefit of being my valuable subscriber….! * smile * )

Alright….let’s continue with this strategy for now..

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So What Kind Of ” Rejection Zone / Set-Up ” Do I Look For….?

….Once Dropped Down To The 1 Hourly Time-Frame ?

——————————————————————————————————————–

Upon switching to the next smaller time frame ( which is the 1 hourly )….

…This is what I saw :

Remember this…

The reason why You are dropping down the 1 hourly time-frame is because You are ” looking for good hints ” to support Your SHORTING Bias…

Again………You are doing this due to the fact that the ” Price Is Approaching The ( Down ) Trend-Line ” on the 4 hourly time-frame …once again..

So without a ” Good Hint “…..

And Without  ” Considering The Risk Involved ” for this position…

Then You are NOT ready to enter the market to SHORT….

The key to be successful….AND  ” making nice consistent Profits ” from forex trading is to secure as many winning trades as possible..

That’s a logical and proven fact…

I am a stronge believer of Price Action Strategies…

And I rely the Price Actions in the market to confirm my bias and then guide me into a certain position I wish to trade..

Why the need to do that ?…….

Are You wondering on that too ?

Nothing complicated actually….but as long as one can extract as ” many hints / Confluence ” from the Price Actions in the market …

The success rate would be ( very ) high end of the day…

What matters most is ” WHAT ” should You look for  that is paramount to Your success….!!

So from this moment onwards……

…I will be explaining on ” WHAT ” am I looking ( or waiting ) for before I finally decide to commit into this postion to SHORT the USDCAD…

Let me show You the illustration again as I explain on some important details here to help You understand :

As You can see from the above illustration…

There is ” still some distance away the price is from the ( blue ) Trend-Line top limit “…

Moreover………there are also some ” Pin-Bars ” on that series of candlesticks reflecting
the price actions in the market .

What these current Pinbars and Price Actions mean is that  - There is a ” high likelihood ” that the price will CLIMB further..

Hence, I am reluctant to SHORT at the current Price level…..

…But choose to WAIT instead for ” Better Price & Desirable Price Actions ” in the market..

…..So did my ” Patience ” pays off ?

Yes….indeed !

The price actually climbs all the way to the level where the previous top is..

And then FAIL and ” Get Rejected ” there…..!!

( Proven by a few Bearish Candlesticks reflecting a high-probability of REJECTION at this level )

Here’s an illustration to show You :

As shown in the illustrations above..

The price climbs all the way and ” stalled ” upon touching the Trend-Line nicely…

But that is not always the case though…

Sometimes the price would pierce through……and then plunge down again…

Sometimes it would not even touch the trend-line ….and the next thing is that it PLUNGED down fiercely …

So the key here is to gather as ” many such hints ” from the market as possible..

That is a much better & ” Profitable ” way to trade the forex market…* smile *

So upon seeing that ” Nice REJECTION ” zone…

And knowing that the ” Risk ( Stop Loss ) ” needed is ONLY 40 Pips..

I know this is the ” set-up ” I wanted..

NOTE : At the same time, I already knew that the POTENTIAL REWARDS ( Pips ) I can aim for with such set-up in the market.  ( which I would be showing You later below )

The Potential Rewards ( after calculation ) is about 150 Pips for this set-up…

BUT….I am just aiming for a conservative 80 Pips for this trade…..( my style ! * smile * )

Good enough as the risk involve is ONLY 40 PIps..

Hence giving me a Reward/ Risk ratio of 2 : 1….

TWICE that is !!

Before I get into the trade summary…

Let me show You ( with illustrations ) on how I calculated the Potential Rewards You can aim for ( that’s how I derive the 80 Pips Take-Profit Target ) :

This Step on ” Calculating Potential Rewards ” was already done so BEFORE I get into my SHORT ENTRY..

It is part of the trading ( or battle ) plan so that the Reward / Risk ratio could be determined way before hand…

And if it is worth it….I will ” wait ” and continue monitor this trade closely as the set-ups unfold in the market…

So as can be seen from the illustrations above…

The Potential Rewards is calculated to be 150 Pips..

And I am just aiming for 80 Pips out of these 150…

Is it consider ” realistic ” here ?

…..VERY ! * smile *

As I intend to trade this position for short-term ( intra-day ) profits..

Hence 80 Pips is already more than enough for me.

Well…perhaps some of You guys might be wondering about this question too :

” Hey Aaron….why don’t You aim for more pips in the range of 150 - 200 pips ?….

Since this is a Down-Trendline…..Why don’t ride the Trend further for more Pip ? “

My Answer for You guys :

Yes…..aiming for more profits in the range of 150 - 200 pips is definitely good….

Especially when this is a ( Down ) Trend-Line….which carries a high probability of Strong Down-Trend..

HOWEVER…..

The reason why I am just aiming for a Short Trem ( Intra-day ) profits of just 80 Pips is solely back-up by some strong ” logical facts ” here though….here it is  :

…See on the illustrations above, You can also see a really STRONG SUPPORT Line for
this USDCAD pair right ?

As long as this Support is NOT broken…..

I will ” respect ” it very much as it is literally NOT wise to presume that it would be broken
for sure…

( One of my winning rule is ” Never Presume ” anything in the market…..remember ? *smile *)

BUT once that Support is BROKEN…

Then YES….I would be aiming for BIGGER Profits in the range of 150 - 200 pips….
OR EVEN MORE !!

Now You know why I am aiming for just 80 Pips for this trade……

Being conservative and respect the support line is essential here.

Trading just 1 standard lot and nailing 80 Pips is already USD$800 profits….

What if You can do it confidently 4 -5 times a month ?

$3,200 - $4,000 just trading 1 standard lot……?

Not bad I am sure…

And if it is a ” High Probability Set-Up & Proven Strategy ” You’re using…

Then it would make the entire trading process very enjoyable too - WITHOUT You having to worry and feeling fearful …which happen to most ..

Right !

——————————————————————–

Here’s the trade details for this position :

——————————————————————–

SHORT Entry : 0.99595

Stop - Loss : 0.99995 ( 40 Pips Risk )

Take - Profit : 0.98795 ( 80 Pips Rewards )

So How Did This Trade Turns Out Eventually ?

Here’s the Answer for You :

This trade intially goes ” slightly ” in my flavor….

But shortly after that…it starts climbing up again and reaching as high as the previous TOP…

Just 10 pips more and it would hit my Stop-Loss for this trade…

( as You can see too above )

Hmmm……Sometimes a small difference of 5 - 10 pips can literally make or break a trade …

Imagine I am not giving any allowance ( extra pips ) for my Stop-Loss…

Then it would got hit and there goes another LOSING trade….
( which could be a WINNING one eventually )…

Hence, whenever I decide on a Stop-Loss , I will make sure I give it an extra 10 - 15 pips.…( especially for such TIGHT Stop-Loss placement )

—————————————————————————————————————————–

….A while back, I have written a forex trading tip on ” Strategic Stop-Loss Placement - In Order To Avoid Getting Hit Unneccessary “ for my fellow readers. If You are still NOT confident about Stop-Loss Placement yet….. ( and have not read on that tip I wrote )…

=> You can still read the entire Stop-Loss Technique here

( ….Please do it AFTER You read through this strategy as it is NOT good to disrupt the FLOW when learning a new forex strategy ! * smile * )
——————————————————————————————————————————

Alright….back to the last stage of the trade progress now..

This SHORTING trade last for slightly more than a day before my Take - Profit target
finally hit….

And if You notice too..

The ” BEARISH ” action only starts after the 3rd Tops.

Which is also known as a ” Triple Tops ” formation in the market…

Note how ” BEARISH ( Long & Full ) ” those candlesticks are after the 3rd Top…

Price actually PLUNGED down aggressively with no break/retracement at all..

What does this shows ?

It shows that there are big ( volume of ) funds pouring into the market to SHORT this pair as well…at that price point.

Where did those BIG Funds coming from ?

Obviously from the major banks, institutions, hedge funds….and combined power of both Professional & Retail traders …..right !

…..Those BIG Players are watching such Trend-Line too !

So it definitely pays to understand & eventually master this forex strategy on Trend-Line trading..

Combining with ” Price Actions in the market ” to seek for HIGH PROBABILIY REJECTION Set-up……

…The Winning % can be really astounding most of the time !  * smile *

And now You know…..

I would consider the above strategy a very simple one in fact..

( But ( very ) Profitable at the same time ….)

The key is to know ” what to look ” for when a price hit a Trend-Line LIMIT - In order to support Your bias to Short/ Buy..

After that…weight the Reward/Risk ratio to see if it is feasible to trade it..

That’s about it.

The beauty of such strategy is that You can use it on almost ANY currency pairs available on Your trading platform..

Why ?

Because it has been proven to work on them !

NO Technical Indicators needed….

NO Complicated Trading Systems needed…

NO Need To Read Tedious Financial Reports / News..

Isn’t it ( really )Simple after all…?  LOL

If You are not confident yet……

Do not give up..

Just learn bit by bit progressively…

Soon You can also get the ” full PICTURE ” and finally ” GET IT ” too..

——————————————————————————————————————————

Here’s the earnings screen-shot with ” Entry, Stop-Loss & Take - Profit ” to share :

( 80 PIps from this trade = $2,435.04 Profits )
—————————————————————————————————————————–

A Profits amount of $2,435 + might not be “  alot ” to some traders…( whom are trading a much bigger lots size than me )

BUT………when these small profits in the range of $2,435+ could be achieved consistently ( again and again )…..3….4…..5….or even 10 times in a month…

That would already amount to more than $10,000 - $20,000 profits from forex trading…

That also explains why I always advise those traders starting out …… to start small and build up their account size progressively by winning ” Realistically Small Profits ” but consistently…….

( Training Yourself to aim for 50 - 100 pips is a good target for short-term trading as it is within the daily average range for most currency pairs  )

This would enhance Your trading skills and confidence in no time….. as You guys trade more and more in the LIVE market..

The Big ” V -Day ” ( Valentine ) is round the corner as I am done with this winning trade on the USDCAD..

Grabbing a nice Profits of $2,435+ from this trade………

And the BIG ‘ V ” day near…

Definitely this amount would come handy now…..right !

Especially when my wife has already hinted me about that particular ” CHANNEL ” handbag she has been eyeing all these while !!!

Good time to pamper our love ones on this special occasion…

Am sure You would agree on that too ….* smile *

Making Nice Profits and income from the forex market feels good…

But it would be even ” BETTER ” if we can use the money to make our love ones HAPPY at the same time……..agree too ?

” Smiling with a wide GRIN on my face now…. “….

Alright….so much for this profitable forex strategy on :

“…( Down ) TRend -Line Combining With A Proven Bullish REJECTION Zone “…

If need to….do make sure You read it again and fully understand it ya…

This is to ensure that You would NOT get too confused while trying on a DEMO account after that…

Happy practising and trading in the meantime..

I shall send You more forex trading strategies & tips in the days to come..

Thank You for reading this far too.  * smile *

To Your ( absolute ) FOREX SUCCESS,
- Aaron Tan ( your trading friend )

Alright Fellow Traders…..

In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  An  ” Extreme BREAKOUT ” In Price

2)  And then riding on the TREND with multiple - ” Price Pull-Back Entries “

As an aspiring trader ( or so called newbie )  begins his / her  Forex exploration journey…

He / She would bound to bum into this Forex Price Breakout at certain point of their learning process.

….Regardless of from what source they learn their trading from….

99% of the time….these aspiring newbies would ( for sure ) heard about this Forex BREAKOUT at least once or twice…

Well….the reason is pretty obvious here…… isn’t it..

A Price Breakout is certainly Very Profitable……

…Especially when a BREAKOUT would lead to an ” Explosive ” movements in the forex market..

When that happens…..It also means there are lots of valuable PIPS ( Profits ) for any traders in the ” KNOW ” to grab..

In fact, trading Breakout is one of my ” all time ” favorite trading strategy as well.

I don’t need any complicated technical indicators…..

OR…. spent too much time on analyzing the Forex market..

But still………it enables me to nail a ” Relative HUGE “ amount of  Pips ( Profits ) out of such EXPLOSIVE movements from the Price BREAKOUT..

Truly cool I must say ….* smile *

Recently, I have been receiving many emails from fellow readers ( whom came from all over the world ) asking on how to trade a Price Breakout …

And most of them actually ” sort of  already  know ” …… how to ( roughly ) trade such Breakout in the Forex market..

BUT the thing is that they are still NOT confident of spotting for a ” reliable Breakout ” set-up to trade.

By ” reliable Breakout “……….I mean one that would lead to a short term prevailing trend in the forex market after the price exploded.

Well….

When You DON”T KNOW how to filter the more ” reliable & profitable ” set-ups to trade..

The end of the day results would most likely be Utter Disappointments..

Although Your trades might be protected by a Stop-Loss…

But if You are LOSING 5 times..

…Winning another 5 times…

Then that is basically back to ” Square-One “ ……..Hmmmmm….

Meaning only seeing a ” Break-Even ” account size end of the day.

( or slightly in the deficit zone due to the losses from Spread incurred )

So to help You guys understand more on how to take advantage of the Lucrative Price BREAKOUT in the Forex Market…

….and spot for ” Low Risk ,HIGH  Rewards & Very Profitable  “ Set-ups prevailing in the trend that follows after the BREAKOUT..

I shall share a Proven & Time-Tested Forex Trading Strategy to capture such Breakout below.

The beauty of this Breakout Strategy is that once spotted..

You will normally get at least 2 - 3 ” Very High Probability & Profitable Entries “ to grab some nice Pips out of the market… ( again and again )

Alright…let’s get started now :

——————————————————————————————————————————

Profitable Forex BREAKOUT Trading Strategy That Takes Advantage of  Multiple ” Low Risk….HIGH REWARDS “  Price Pull-Back !!

——————————————————————————————————————————

The reason why I have been a strong believer of  trading with Price Actions in the forex market is because they are NOT LAGGING, More Reliable & Much Accurate.

Perhaps You already know this fact by now too…..

IF….. You have been reading my forex tips so far… * smile *

That is why I DO NOT need any fundamental or so called ” Insider Tips ” to help with my analysis..

But rather…..

…Based purely on the Price Actions in the market, I can predict where the Price is going to head to next…( and most of the time with High Accuracy !)

Combining with a good Risk/Reward ” Entry ” point…..

…..it literally enables me to secure Very high trading success ….each and every month. ( for 5 years+ now)

Read on below for more details on why I said You don’t really need any Fundamental or INsider Tips …..

…..BUT just Price Actions to spot such highly Profitable BreakOut to trade !

—————————————————————————————————————————-

If You have been trading for awhile….. or…. at have been reading up quite abit on forex trading..

Then it is not new for You to know that a ” Double Top or TRIPLE Top “… is actually a Bearish Sentiment in the market…

That’s because such Tops are direct reflections of  the ” Resistance Levels ” in the market…

Meaning the buyers are NOT willing to settle for a higher price anymore..

Thus , such TOPs ( Resistance Levels ) are being formed in the market.

HOWEVER….

IF these resistances are being BROKEN - And Price BREAKOUT To The Upside…

It could mean another story then…

And most of the time, a NEW TREND would prevail after such BREAKOUT

But what do I mean by TOPS ( Resistance Levels ) being broken then ?

———————————————————————————————

Here’s Some Illustrations To Share :

——————————————————————————————–

( This is traded on the EURUSD currency pair - 4 hourly chart )

Initially there are 3 ” Tops ” spotted in the market ….

Such resistances are indeed very STRONG…since it failed to be broken on 3 occasions..

As can be seen below, the price is at the resistance level once again to test it..

And based on the ” Full Bull Candle ” present…..there’s a possibility that it could be broken anytime soon.

So what I would do is monitor closely and wait for it to be broken.

….And indeed…in less than a day time, the Price has BREAKOUT to the upside….

Forming a ” New High “.

Here’s an illustration to show :

As can be seen above…the price has finally BREAKOUT to the upside now..

Taking out the previous resistance points..

Like I mentioned earlier ….this is the chart of EURUSD on a 4 Hourly Time-Frame..

Any ” Breakout ” on relative big time-frame such as the 4 hourly…..

It could result in a short-term trend that last for 2 -3 days…or MORE !

…..BUT !!!!

…..You definitely should NOT simply just jump into the market and start BUYing/ LONG at whatever price point You want though…….

Considering the Risk/Rewards involve…..is very critical for Your success here.

And You preferably ONLY want to capture those ” Low Risk & HIGH Rewards ” set-ups..

If  that’s the case, then what should You do in order to capture the ” Low Risk/ High Rewards ” set-ups ?

Any idea on Your side before I reveal mine ?

( ….Give You 2 minutes starting now then….* smile * )

Well…for those that like the challenges of coming up with an answer for Yourself..

Carry on please..

But for those that do not want to …..

———————————————————————————————————————

Proceed to read on my complete step-by-step explanations below :

——————————————————————————————————————–

What You need to do is rather simple actually…

Since You spotted such ” Triple Tops Breakout ‘ on a 4 Hourly Time-Frame..

So in order to look for ” Low Risk & HIGH Rewards ” set-ups to ride the Up-Trend that follows..

Just drop down to a ” Lower-Time- Frame “…..

And for this case, the 1 Hourly would be good !

Why so ?

Because whenever there is such ” BREAKOUT ” spotted on a bigger time-frame…

There would bound to have at least 2 -3  good ” Low Risk & High Rewards ” entry points on the lower time frame…

But before I get into that..

Let me show You what kind of Profits Potential we can expect from such a Triple Tops BREAKOUT on the 4 Hourly Time Frame first …

( Assessing this step is very important as You would be able to know the maximum amount of Pips You can grab….while track on the ” Realistic ” side !! )

From the illustration above..

It is clearly seen that the profit potential ( amount of pips that can be grabbed )…..is about 320 Pips !!

And that is from the point of BREAKOUT to the next immediate Resistance Level  on the 4 hourly time-frame.

Yes……..You can definitely SWING this trade and ride the entire trend for all potential pips..

But on the other hand…..

I know that NOT many traders can withstand the many ” ups & downs ” that are bound to occur ….

…..while waiting for the price to climb for more than 300 pips..

Most important, most traders ( especially those just starting out ) simply CANNOT stop worrying about their positions…..( while having to hold overnight or for days….)

As such, that could mean they are better off  NOT sleeping the entire night…

( bad for health……really bad for health….right ! )

So in order to benefit the newbies as well..

I decide to share this Breakout Strategy such that anyone can also spot for ” Profitable  & Low Risk  Entry Points “ on an INTRA-Day basis.

….and just play the short term momentum in the market.

In order to achieve that…..

…We will be looking for good entry points in the market by targeting on the multiple Price -Pullbacks that would happen.

Read on below as I share with You on :

1)  My ” very 1st- Entry ” point & Take-Profit Level

2)  My ” 2nd -Entry ” Point….& Take - Profit Level

3)  My ” 3rd - Entry ” Point….& Take - Profit Level

————————————————————————————————–

My Very 1st - Entry Point For BUY….& Take - Profit Level

————————————————————————————————–

Again…this is the Price BREAKOUT Point on the 4 Hourly Time-Frame ….( to help You recall again )

….And by dropping down to the 1 hourly time-frame….

This is how I look for the ” Low Risk & HIGH Rewards ” Entry Point :

Using the proven theory of  ” Previous Resistance Turns Support “ ….during an uptrend..

I choose to BUY shortly after the price has bounce off the previous resistance level and about to climb up. …( as illustrated above )

My BUY at Price :  1.34554

My Stop-Loss at Price :  1.34154 (  40 pips risk )

My Take-Profit at Price :  1.35354 ( 80 pips rewards )

As this is a BREAKOUT on a bigger time frame, it is definitely feasible to aim for rewards that are 2x my risk…

However….as I am using a ” relatively TIGHT ” Stop - Loss here..

So there’s one thing I have to do in order to protect my trade though…

That is essential to avoid seeing a Winning Trade turning into a LOSING one.

What needs to be done then ?

That is …..when the price has climbed for 40 pips….( which is my stop - loss amount)

I will at least SHIFT My Stop-Loss to BREAK-EVEN point..

As well as exit 50% of my lots to keep some of the profits first..

Very mandatory to do this step of ” locking in profits ” especially when the Stop-Loss I am using is Relatively Tight..

So how did this trade progress for me ?

Here’s the illustrations to share :

As You can also see above…

Shortly after my BUY entry at price 1.34554..

The price actually started to climb for about 30 pips and then DIP down again..

This time ” nearly hitting ” my Stop Loss placement…. ( but missed by 3 pips !! )

After that it climbed all the way to my first 40 Pips Profit - Target…

It is also at that moment where I EXIT 50% of  my total trading lots ….

I entered with 6 Standard lots so……it is equal to : ( 6 Lots x 50% = 3 Lots )

However…the price did not hit my 80 Pips target but rather….

……it PLUNGED down again and this time…… even LOWER than the previous one.

Which eventually taking out my trade and hitting my Stop - Loss level…..BUT at ” Break-Even ” point.

With the first 50% Partial Exit on the first 40 Pips….I am still a winner for this trade though. * smile *

Imagine if I did NOT implement the ” Partial Exit ” strategy……

…..NOR the ” Shifting To Break-Even Point ” for Stop Loss..

What would be the end results eventually ?

I would be LOSING this trade entirely right…..?

Losing => 40 Pips x 6 Standard Lots  that is !

Hmmm……..definitely no good.

So now You know why am I ( very ) particular with ” Protecting ” my previous profits….

Especially with an intra-day position where the ” entry, stop-loss & take-profit ” are so CAREFULLY planned….

BUT I still DON’T give chance for ERROR - Should the trade reverse halfway unexpectedly….

Very important to take into consideration about ” Protecting Your Previous Profits “…..indeed.

Please do so IF… You are NOT doing so …ya.

Alright….with this, I shall end the step-by-step explanations for the ” 1st Entry  & Take Profit ” point for this strategy…

I will be sharing on the ” 2nd & 3rd Re-Entry ” later below…

And they are getting more ” Exciting ” though……..* smile *

Continue reading below to learn other details on this Highly Profitable ” Breakout ” Forex Strategy ….is a must ! * smile *

—————————————————————————————————————————

Before that, here’s the earnings screen-shot with my ” entry, stop-loss & take-profit ” to share :

( 1st Exit - 40 Pips with $1,200 profits )

( 2nd Exit - at Break-Even )

————————————————————————————————————————-

My 2nd Re-Entry Strategy - By Taking Advantage of  The Next Price Pull-Back….

When there is a high tendency for a Strong Trend to develop in the forex market….

….Especially after a Price BREAKOUT  on the higher time-frame..

There bound to have MANY  “  Low Risk & HIGH Rewards ” Set-Ups for You to enter….re-enter…..and re-enter….

….again and again to grab some good amount of PIPS ( Profits ) for Yourself.

And this is exactly what I am going to share with You next ..

In order to make sure that the it is a ” Healthy & Profitable “ Up-Trend still…

We need to see 2 ( Important ) things happening in the market namely :

1)  The Price Has To Make A ” Newer High “…

2) The Price Has To Pull-Back / Retrace To Previous Resistance

If these 2 ” essential elements ” are being spotted in the market..

Then it could be considered a ” Low Risk & HIGH Rewards “ Set-up You can take advantage of  for Re-Entry.

Like This :

Upon seeing the price bounce off the previous resistance..

And also spotted a ” Bullish Candle ” closed….

That is a good sign of an ” Re-Entry ” for a BUY.

After weighing the Risk ( Stop- Loss ) needed….

…And confirming that using a tight stop-loss of just 40 pips is feasible…

I then go ahead and ” Re-Enter ” to BUY again.

Here’s an illustrations again to help You see better :

For this 2nd Re-Entry…

I am still sticking to a tight Stop-Loss of 40 Pips too.

And aiming for a Take-Profit ( TP ) Of 80 Pips.

That would give me a good rewards/risk ratio of 2x.

The ” Average Daily Range ” for this currency pair that I am trading ( EURUSD ) is about 120 - 150 pips..

So aiming to grab 80 pips out of the range is definitely being ” realistic “ here.

This is especially when there are so many ” good confluence “ of  Price Actions being present here….( as mentioned above just now )

So How Did This 2nd Re-Entry Turns Out For Me ?

Here’s the results to show :

As I am using the 50% partial exit strategy for the first 40 pips..

That happened about 2 hours of my entry actually…..( as You can see above )

At the same time I also shifted my Stop-Loss to the Break-Even Point now…( at Price 1.35308 )

This is to ensure that even if the trade was to turn against me now….

I have already pocketed the 40 Pips earlier….

Since my SL is at Break-even now….I would NOT Lose Anymore !

This is literally a ” nice feeling ” knowing that the only outcome WINNING end of the day..

Agree ?  * smile *

After trading for a few hours more..

This price finally hit my Take-Profit point at Price 1.36108….   ( for 80 Pips Rewards )

And that is for the 2nd 50% of the total lots I enter to trade initially.

A nice 2nd Re-entry here isn’t it ….?

—————————————————————————————————————————-

Here’s the earnings proof with the exact ” Entry, Stop-Loss & Take-Profit ” to share :

( 1st Exit  - 40 Pips with $1,200 profits )

( 2nd Exit  - 80 Pips with $2,400 profits )

—————————————————————————————————————————–

Next…..

I am sharing on the 3rd Re-Entry strategy - While still continue ride on the ” Juicy Profitable ” trend prevailing in the market now..

However…this time round I am doing something ” slightly ” different though..

But it is definitely a good thing for our Pocket ( and trading account ) end of the day ! * smile *

Read on to find out the exact details.

Once again….

…..since I am still riding on the prevailing short-term trend after a Price-BREAKOUT on the bigger time-frame..

I need to make sure that the elements that needed to confirm that the trend is still a ” Healthy & Profitable ” one still present too.

These Essential Elements are namely :

1)  The Price Has To Make A ” Newer High “…

2) The Price Has To Pull-Back / Retrace To Previous Resistance

If these 2 ” essential elements ” are ( again ) being spotted in the market..

Then it could be considered a ” Low Risk & HIGH Rewards ” Set-up You can take advantage of  for Re-Entry ( again ).

Like This :

For this 3rd Re-Entry I am executing…

I am actually doing something ” slightly different “….which is beneficial to my Pocket. ( as I mentioned earlier )

That is….I am aiming for a ” Slightly Bigger ” Take - Profit Target this time round.

And what’s the reason for my decision to aim for a slightly bigger Profit target then ?

If You notice from the illustration above.

The ” Pull-Back/ Retracement ” is actually MORE than the previous one ..

In a trending market….the MORE the ” Pull-Back / Retracement ” is…

That would also implies that one can aim for MORE Profits too..

( normally 1.5 - 2 times the ” depth ” of the Pull-Back/ Retracement )

So instead of aiming for 80 Pips Rewards like the 2 previous trades..

I am aiming for 100 Pips this time round for the TP.

While still maintaining my Risk ( Stop-Loss ) at merely 40 pips.

This would enable me to achieve an even better Reward/Risk ratio of about 2.5x.

Here’s an illustrations of my Entry, Stop-Loss & TP to share :

And how did this 3rd Re-Entry turns out ?

Did I manage to profit the FULL 100 Pips I wanted..?

Here’s the results :

Indeed….the price Charged-Up continuously to my 100 Pips TP point without retracement..

( You can see from above too ! )

As I am executing 50% partial exit..

The exit for the first 40 Pips was done after 1.5 hrs from my entry to BUY…

And the 2nd partial exit for the FULL 100 pips was triggered after about 3 hours of trading.

—————————————————————————————————————————–

Here’s the earnings screen-shots for the exact ” Entry, Stop-Loss & Take-Profit ” to share :

( 1st Exit  - 40 Pips with $1,200 profits )

( 2nd Exit  - 100 Pips with $3,000 profits )

——————————————————————————————————————————

All in all…..how many times have I entered into the market till now ?

The ( very ) 1st Entry….

…..Then 2nd Re-Entry..

…And subsequently 3rd Re-Entry…

So altogether 3 times in total !

Most importantly….ALL are winning trades….

( though 1st one only profited 40 pips at 50% partial exit )

But just as the Warren Buffet said so …..

“…As long as You are not Losing….You’re a Winner ! “

That’s definitely very true in any trading game.

Even when You are equipped with a set of SOLID & Proven trading strategies…

But it does not include any strategy to ” Protect Your Trades - Especially The Earlier Profits “…

Then I would say that the Winning Probability is NOT being Optimized Or Max Out Yet…

Most traders are losing money in the market because they are NOT taking the extra step to secure their profits actually.

( Am sure You would rather ” Profit 5 Pips……then to lose 20 PIps right ! “…)

So what they experience most of the time is to see their Profits being given back to the market……

OR….a Winning trade ( previously ) turning into a LOSING one now……..

That is definitely very frustrated…..very disappointing to experience in trading.
So if You are one such person whom is NOT using a method to ” secure your previous profits “…

Or maybe …..You just DO NOT know how..

What can You do then ?

You can go on and explore a few such methods and then choose the one You prefer…

Or ….You definitely can follow the ” Partial Exit ” strategy that I used for my explanations above.

For a currency pair with Average Daily Range of about 120 - 150 pips…

I am personally getting very good results with a 40 Pips Stop-Loss…

As well as 80 Pips Rewards…

And I will exit partial lots at the first 40 Pips ….

Then shift to break-even for the remaining lots to allow the trade to proceeed to the full TP point.

That’s about it.

If You’re NOT feeling confident about such exit strategy now…

Do not worry…

Just keep on practicing…..and soon You will begin to get a ” better feel ” of using such exit strategy..

BUT there’s one important thing though…..

40 Pips can be considered a ” Rather Tight Stop-Loss ” to most..

And for those traders whom are NOT good at recognising ” Reliable Pull-Back/ Retracement ” yet…

This kind of ” tight ” Stop-Loss could pose some frustating problems ….again and again….

YES…….I mean getting those ” Tight Stop Loss ” hit…and hit again…

So if You’re one such trader….

It is perfectly fine though….

Just use a ” slightly bigger ” Stop Loss will do….

Perhaps in range of  50 - 60 Pips is still fine….

Because You would be aiming for 80 pips rewards..

As long as Your strategy is at least 60% winning rate…

You will end up wining end of the month….* smile *
So to summarize the Forex Breakout Strategy I shared today….

Just allow me to emphasize a few important points about this BREAKOUT strategy before I pen off  …

Summary For This Entire Forex Breakout Strategy - While Taking Advantage Of Multiple Price Pull-Backs

( NOTE : All the steps below that I am summarizing for You have been explained in the entire strategy above just now. So if at any point You cannot recall what am I talking about, do feel free to scroll up and refer again to the illustrations ya.  This is essential for understanding, absorbing and ultimately mastering a new proven forex strategy …..right !! )

1) The price has to ” BREAKOUT ” from a few TOPS ( or resistance points ) forming in the market previously……( the more the beter ! )

- Make sure that this BREAKOUT is happening on the bigger time-frames such as the 4 hourly or daily…( as they are more reliable & more Potential PIPS to be grabbed )

2) Upon spotting one such ” BREAKOUT “…….measure the Profits Potential You can expect out of this move. You can do so by measuring the Pips difference from the ” Point Of Breakout ” to the next ” Resistance Level ” on the 4 hourly Time Frame.

3) Once confirming the ” Potential Profits That Could Be Grabbed “……drop the to the next LOWER Time-Frame to spot for Price Pull-Backs/ Retracement

- This is because ONLY with a Price Pull-Backs / Retracement then it is possible to achieve the ” LOW RISK & HIGH REWARDS ” Potential….

4) Once Spotted a ” Price Pull-Back / Retracement ” in the lower time - frame….do make sure the price has actually fall to the PREVIOUS RESISTANCE LEVEL before You enter to BUY. ( for an uptrend )

5) To increase Your winning probability, consider using the ” Partial Exit ” Strategy even for intra-day short term positions.

6) For Re-Entry , do make sure that the Trend is STILL ” Healthy & Profitable ” by confirming with 2 Important elements namely :

i)  The Price Has To Formed A ” New High ” Than The Previous High

ii)  The Price Has To Pull-Back / Retrace To The Previous Resistance….( for an up-trend )

7) When I am personally trading this strategy, I will at most settle for a 3rd Re-entry and nothing further. That is my personal preference.

But if You would like to go for the 4th Re-Entry ( because after going through the checklist,
the trend is still healthy and good )……

……then so make sure that there is still an ALLOWANCE of At Least 150 Pips before hitting the Resistance Point You pin-point in the 4 hourly earlier.

Let’s say You’re also like me……aiming for 80 Pips out of the potential 150 Pips to go is definitely ” Realistic ” here….agree ?

Yeah….so do make sure You have at least 150 Pips allowance to the PEAK You pin-point while calculating the Potential Profits .

Once You have won the ( valuable ) Pips You wanted frm the 4th Re-Entry…..

…and soon after that You actually saw a ” Double Top, Head & Shoulders ….or Perhaps a Evening Start Formation ” on the 1 hourly time frame….

These are basically a ” BEARISH Reversal Formation”…..SO….it is best for You to step aside for now and do not re-entry again….

By then….You should have WON 3 - 4 trades and grabbing 200 - 300 pips out of this trend already..

So definitely DON”T NEED to be ” Greedy ” temporarily ….right ! * smile *

Alright…so much for this ” Profitable & Highly Effective Forex BREAKOUT Strategy “…

I shall pen off now..

Thanks for reading this far..

Hope You can now include another proven & extremely effectively BREAKOUT strategy to Your strategies arsenal too …..( and ace the market with confident ! )

To Your ( absolute ) FOREX SUCCESS,
- Aaron Tan ( your trading friend )