In this post, You’re going to learn the exact same “Reversal Breakout ” strategy which I used to nail 130 Pips on the GbpUsd.

( Without using any technical indicators at all…! )

Nailing successful trade like this in the 130 - 150 Pips range can be considered rather hard for many traders…..

If You’re also thinking this way and still struggling to even achieve 100 pips in a single trade..

Then this strategy that I am sharing below can really benefit You tremendously….

( Especially when NO technical indicators are needed at all….) * smile *

To sum up what this strategy is all about…

It is a very common ” Reversal Breakout ” strategy which happens in the market often….

Normally after a very strong trend..

Read on below for my step-by-step explanations….( and my earnings proof as well )

To make it easy for anyone to understand how I analyzed the market for such ” high probability ” set - up..

I will break them up into 3 simple steps ….( with illustrations )

—————————————————————————————————————

They are namely :

Step #1 :  The Overview Of This Set - Up To Go ” Long/Buy “…

Step #2 :  When Is The Best Time To Get Into The Trade For ” Minimum Risk “….( tighter Stop - Loss )

Step #3 :  How To Calculate The ” Appropriate Profit Target ” To Aim For…

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

3 simple steps….that’s about it…..nothing more complicated….

Once I explained to You how I analyze each step…

…..You Will find it very easy to understand then too…

( Of course it also means that Your trading knowledge has been enhanced at the same time ! )

With much further ado…..let’s get into the main steps..

Step #1 :  The Overview Of This Set - Up To Go ” LONG / BUY “….

It is a fact that nothing is 100% guaranteed in any trading business…

This includes Forex Trading as well…

Thus……in order to derive our Buy / Sell decision…

We need to extract ” hints or signs ” from the market using technical analysis through charting… ( can even combined with major fundamental news )

The same goes for this strategy too…

In this strategy….I am taking advantage of 2 ” natural behavior ” of the market to help me conclude this decision to go LONG..

Both are ” Bullish ( up-trend ) ” patterns indeed…

And they are :

1) Double Bottom Formation….

2) Triangle Breakout Set - Up ( Up-ward )

These are very common patterns which are not new to any traders I am sure…

But using & interpreting them ” correctly ” is the real key here…

Most importantly….

Using JUST ONE of these 2 is not good enough …

BUT…..combining these 2 patterns together…..the winning probability is enhanced by another 70% at least…

Bottom line is…..the more such ” proven patterns ” You can grab from the market….

The higher the probability of winning….

So how did I derive the ” BUY ” decision to calculating the appropriate stop - loss and take profit to use …..then ?

Let’s get into that now….

How I Derive My BUY Decision Based On The 2 ” Bullish ” Patterns…

This Gbp/Usd pair has been on a strong down - trend for the past few weeks…

In the currency market….whatever goes down….must come up….that’s a fact.

And vice versa….

This explains why You see a ” Major Reversal ” after a strong trend very often….

( Perhaps You even get caught up in one before ? making You frustrated …)

The Gbp/Usd has plunged to a point where it formed a ” double bottom ” pattern…

Important Note : After the 2nd bottom…..note the ” Strong Bullish CANDLE ” straight after…

This is the very first sign of an impeding bullish reversal..

…..And we have to confirmed with more ” hints ” from the market to reinforce our bias of course…

( This is trading on the 1 hourly time frame )

The price climb very ” fiercely ” upward after the 2nd bottom…

But this is NOT good enough for us to enter yet…

Some traders might jump in straight after seeing the double bottom…

But I personally like to ” gather at least 2 hints ” from the market first before jumping in…

This makes me a more conservative trader…

And of course…..over time I would enjoy more winning trades….* smile *

OK….one ” pattern ” is not good enough to get into the trade..

What’s the 2nd ” hint ” we need then ?

It can be anything as long as it supports our ” BULLISH ” bias…

And indeed ……after some waiting…

The price forms a ” Triangle ” pattern….. ( which is a BREAKOUT set - up ! )

This is considered one of the best set - up ….in fact..

Because it would lead to ” massive movements “  ( more pips to be grabbed ) in the market normally…

And the risk ( stop loss ) we need can be very tight…

More on that in step #3….

Let me show You the ” Triangle ” set - up for now…

Now that the ” Triangle ” formation is formed in the market…

It doesn’t mean that we are right about the ” Up - Trend ” bias….

We need to at least wait for the price to ” Breakout to the up-side “ first…..in order to confirm our Up-Trend bias…

If the price breakout to the down-side instead….then there would be no trade of course..

Rather play it safe than to go in with ” guessing ” mindset…..and lose our precious capital for nothing right…?

Ok….as You can see it too from the illustrations above…

The price did went rather smoothly and ” breakout to the up-side “…

The ” full body ” of that candle is another important hint that the ” Bull Power ” is strong…

Let me explain in more details below..

Do You see the flow here…?

From a Double Bottom……to a Triangle Breakout….showing a Very Bullish Candle

With these 2 ” hints ” present….it is definitely good enough for me to enter at that position for my LONG trade…

Yeah…..the price I entered for a Long is at 1.6044…

And it is for the Gbp/Usd..

Do You also remember that earlier I did mention a ” Triangle Breakout ” is one of the best set-up I like to trade…?

Reason is that it enables me to use a rather ” tight stop loss “…..( low risk trade )

But the reward can be fairly large…..as a Breakout normally leads to massive movements.

With that….we shall proceed to step #2 !

Step #2 :  When Is The Best Time To Get Into The Trade For ” Minimum Risk ” ( tighter stop loss )….& Maximum Profits

With a ” Triangle Breakout “….placing the stop loss is really very simple..

For this case…we just have to place it under that ” Bullish Candle ” ….that’s it.

Why so…?

The Price has ” Breakout ” …..and normally it would NOT return to that position again if we are right about the direction..

Very simple logic here….and it is proven too after years of trading breakout for me….* smile *

For this trade…I place the stop loss just below at price 1.5980  ( for 64 pips stop loss )

If at this point You think 64 Pips is too much….

Then once You see what kind of Profits Target we can aim for…

You would probably think 64 pips is indeed a very ” tight one “….* smile *

Alright….having settled the stop - loss…

I shall show You how to calculate what is the appropriate ” Take Profit ” one can aim for such strategy….

That would bring us to step #3 ….( which is also the last one )

Step #3:  How To Calculate The ” Appropriate Profit Target ” To Aim For…

Having seen all the ” hints ” that we need in order to enter into a BUY trade…

The probability of all the trade going up-trend is somehow very high now..

So the main thing to do is to decide on an ” Appropriate & Realistic Profit Target ” to grab from this upward momentum..

So how do You do it ?

Here’s how..

We will measure the distance between the ” double bottom & highest price before the breakout “ as a gauge…

And why I use such method to gauge appropriate profit target then ?

You might be wondering….

Very simple logic here..

The previous downtrend ” stalled ” at the Double Bottom location..

And the Price climb ” fiercely ” upward until the TRIANGLE formation…

The distance is already good enough for us to tell that the ” Buying Force ” in the market is strong enough..

So the ” Probability ” of the market moving a Proportional distance after a BREAKOUT is equally high …

But am I going to aim for the max distance hoping to grab maximum pips ?

Of course NOT…..

That’s is too risky and not realistic…

It would be much better if I aim for a Profit Target within that distance and less ..

In this way……it would be much easily hit….

( Locking and keeping the pips in our account first is more important than anything…..agree ? )

Ok….so what is the ” safe ” profit target I can aim for this case..?

See below for illustrations :

Aiming just 130 Pips out of the projected 274 Pips range…

That’s less than half the ( maximum calculated ) distance..

Which makes this 130 pips Profit Target more achievable and realistic after all..

Well….some traders would want to go for maximum pips…..

But for this trade….I would just settle for 130 Pips and keep that profits first…

Note : For most of my intra day ( short term ) strategies….I would normally aim for 100 - 150 pips for most set-ups.  And it has been giving me very high winning % so far…

If  let’s say the trend is still going strong after I profited…I can still enter during the ” dip ” too..

And that’s when I would deploy my ” trending ” strategy to ride the trend ….( provided it has already established using my checklists )

…..although I am only aiming for 130 Pips out of the projected 274 pips…

I would still make it an effort to ” reduce my risk further ” for this trade..

How do I do that ?

Very simple…

I will ” shift my stop loss to breakeven ” once the trade goes in my flavor for 65 pips..

Why 65 pips then…?

This is the risk I ( stop loss ) I set for this trade remember…?

Most of the time….I trade in this manner..

Once the trade goes in my flavor…I will either lock in some profits…

….Or shift my stop loss to break-even..

At least I would not see a winning trading turning into a losing one….

( Very IMPORTANT In Any Trading Business….Reduce Risk & Protect Profits ! ….Agree ? )

After a few hours of trading…

The 130 pips Profit Target ( TP ) was hit as the price 1.6174…

Using this ” reversal breakout ” strategy purely based on Price Actions + Patterns Formation…

Grabbing profits in the range of 130 - 150 pips can be considered simple…

I usually only trade the 1 hourly…4 hourly & daily time frames.

Reason being is that these time frames give me a much ” reliable and accurate ” market & trend analysis..

130 Pips for this trade netted me a nice Usd $1,297.87 profits…. ( trading 1 standard lot )

Here’s the earnings screen shot with the BUY Order, Stop Loss & Profit Target to share :

From the earnings proof…..You can see that the S/L has been shifted to ” breakeven ” price at 1.6044…

This was done when the price has moved 64 pips in profits  ( like I mentioned earlier above )

Doing so allow me to ” reduce risk further “……as I definitely do not like to see any winning trade turning into a losing one.

( Don’t think any traders like it in fact……keke.)

That is not the end of the story ….

You know what happens to this Gbp/Usd trade after I profited the 130 Pips Profits ?

Check it out :

The Bullish Force is still very strong…

And move up for another 400+ pips…

Definitely a lot of valuable Pips ( Profits ) for You to grab from such ” Reversal Breakout ” set - up..

And the best thing is that it ” always happen ” after a strong trend..

The fact is that the price would not continue to climb forever…

Neither would it drop forever… ( unless the entire country gone burst ! )

It has to ” reverse ” at some point…

So using simple proven ” high probability ” patterns such as the Double Bottom….( or Double Tops )…
You can almost anticipate for a ” reversal ” soon..

Of course…like I mentioned earlier…..One is Not Good Enough….Not Confirm Enough…

You need at least ” 2 such proven patterns ” …..to be sure of Your bias…

Best is….if You can spot a ” Triangle Pattern ( or any breakout set up ) ” in the market….after the first move…

As this would tell You that another ” Breakout ” would be following..

And it also implies there would be ” Massive Movements ” in such breakout..

Also means….Lots of Pips ( Profits ) for You to nail too…

Just remember what I told You about ” Locking Your Profits ” as the trade progress alright ! * smile *

With this…..I shall conclude this ” Reversal ” Breakout strategy that I want to share in this post..

This would not come daily…..

But at least when a strong trend has been prevailing for sometime already…

You can almost ” get ready ” to spot for such Reversal Breakout…

Even if You’re not confident to trade with LIVE money yet…..( still on DEMO trading )

But at least  when You’re mentally prepare for such ” Reversal Breakout ” situation…

You WOULD NOT get Caught in it…..right ? * smile *

Trading both a ” Breakout or Massive Trends ” can be really very Profitable..

This is due to the fact that the market normally ” moves a lot in one direction”…

Any anyone ( including Yourself ) can really grab 100 - 300 pips in a single trade riding on them..

No joke here…as I have been trading only ” Breakout & Massive Trends ” for years now…

And the best time frames to spot them are the 1 hourly….4 hourly and daily…

So I literally do not have to ” sit stay glue ” at my PC the whole day…

I just have to peep once awhile…that’s all… * smile *

While having more free time to enjoy my own activities and accompany my love ones..

If You’re not yet trading either a ” Breakout or Riding The Massive Trends “…
>Perhaps it is time for You to include them in Your strategies basket now..

Why settle for just 10 - 20 Pips…

When You can confidently grab 100 - 200 pips using lesser them right ?

Ok…so much for this strategy..

I sincerely hope You have learnt something here

And soon You can also trade such ” reversal breakout ” set up confidently too.

As far as Forex Trading Strategy is concerned….

The ” More Logical ” it is…..the higher would be the success rate.

Which also means more pips ( & profits ) for you and me end of day !

Just like any financial market, the price movements are driven mainly by ” Human Sentiments”…

The 2 major driving forces are :

1) Panic Selling

2) Greedy Buying

When any of these 2 are ” NOT in balance “…

The price would move….. or rather ” Breakout “.

Now …let me explain and illustrate why and how you can apply this technique & benefit from it too below.

Here’s a trade I took on the GBY/JPY pair using this forex trading strategy to share :

When I woke up in the morning  ( to accompany my wife to the market )….

I also took a glimpse at how’s the forex market is doing after a very BULLISH run previously.

Normally I would not trade on a FRI because it can go really crazy and ” Unpredictable “.

For for this situation, I spotted a very nice ” Double TOP ” price pattern that morning.

So instead of going out straight away…

I requested that my wife give me 5 minutes for me to do some trend-line drawing and place my trades…hehe

As you can see from the screen-shot above…

The price ‘ BOUNCE OFF ” the trendline I drawn..& start heading southwards.

” This is really a very nice and perfect set-up to capture some reliable pips ” - I told myself…

Note: This is something that you would want to know too…really.

When the price does ” Bounce Off ” from the trendline….it actually reflects something important.

If you have been trading using ” Price Pattern ” ( just like me ), you would understand it by now too.

Basically when the price Bounce Off….it means one force is stronger here.

For this case would be the ” Sellers’ sentiment is greater “…

Therefore preventing the price from going any higher than the trend-line.

So it goes with the direction which I want to take too - To SELL or SHORT !

After using the ” usual ” Risk/Reward assessment of mine..

I placed an order, a Stop-Loss & a Take Profit target.

This time round, I am NOT aiming for the usual 250 Pips but I am rather ” Conservative “.

I am using the “ earlier lower point support ” ( Point A ) as a reference for my TP.

( Which you can see from the diagram above )

So I decide to set :

- My TP @ 138.55 ( 180 Pips Realistic Target in case the price ONLY range )

- SL at 141.25 ( -90 Pips )

( rather good risk/reward ratio )

- ” SELL ” entry @ 140.55

Here’s the screen-shot of the order to share :

Using this ” Simple Price Pattern ” analysis which took me about 15 minutes…. ( before heading to the market with my wife )

I profited about 180 pips.

Which gave me a nice USD $1844 +.

Although the price continue to plunge further beyond my TP target of 180 Pips…

But it is really important that one keeps to a ” More Realistic ” target ..

Than to set an ” Unrealistic Profit Target ” and then to see the market reverse and hit our SL …..

That’s really a ” OUCH “….& definitely something we can AVOID!

Which is a basic ” Psychological Aspect ” anyone must possess ….if he/she really wants to be a successful trader.

And Make Real Consistent From Trading Forex Every Month….!

Do you possess such psychology?

Do you always KNOW & set a ” Realistic  Price Target ” …..like I do ?

Something to let you ponder perhaps….

Oh ya….

If you also look at the diagram again, you would notice a ” PIN ” formation on the right bottom too..

This kind of ” PIN ” is a very potential REVERSE set-up.

But I did not take that trade because it is FRIDAY and the market would be closing in just a few hours time.

I try not to take any trade during that period nor do I carry my trade past the weekend.

( Any scary news can just drop over the weekend and cause a ” BIG GAP ” on Monday….! )

Furthermore, I am going out with my wife for a friend’s birthday celebration that time…

So it is kind of ” Enough for me this week “….

Total profits for this month as been rather good with over $25,000+ like I mentioned in my earlier post.

If you have not read it…..

=> Here’s the link to share about one powerful strategy to catch massive pips

Alright…

So much for this post on ” Simple Logical Trading Technique Combined With Double Top “.

I hope that ( once again …) you have learnt another great forex trading technique & got enlighten as well.

Thanks for reading this far.

Happy trading, Happy hunting & More Successful Logical ” Explosive ” gains for you too !

For this Forex Trading Strategy here…

I will be sharing on a ” Reversal ” breakout ( or rebound/retrace ) trading strategy which sometimes occur after a serious plunge.

Here’s a screen-shot to help you understand better :

( Note that this time round the currency pair is GBP/USD )

For this trade, the GBP/USD has been plunging seriously for more than 500 pips previously..

It then came to a point where the ” Lowest Support” was being tested twice..

And somehow forming a ” Double Bottom Breakout ” formation too.

By the time I take a glimpse at this GBP/USD currency pair, the price has started Climbing upward already.

Upon seeing that…

I was really happy as I know there’s a trade ‘ Set-up ” in place for me again this time….

( After profited about 300 pips from the plunge before too..hehe…no no I am not trying to show off here by saying that !! But rather conveying that it is really simple for you or anyone to capture Massive Pips ….if you know how. )

As usual….I do not enter ” LONG ” straight away…

But I wait patiently for more Confirmation Set-ups…

( Set-Ups which I picked up and learnt throughout my forex trading journey so far…)

Having spotted that ” BULL FLAG “…

That’s considered ” One tick ” for me to go LONG…

The final indication came in when this Bull Flag actually fall in line with the ” Previous Resistance of The Range “  ( left side of picture )

Did my calculation for my Risk/Reward ratio..

I then place my ” Entry, SL & TP ” for the trade.

However this time round, I need to emphasize one ” Critical ” factor here..

That is - I am NOT aiming for more than 200 Pips profits for the pair GBP/USD.

Not even 150 Pips…

But only 140 Pips …because it is more REALISTIC.

Had I aim for 200 Pips instead of just a realistic 140 Pips…I might have lost on this trade instead.

( If you refer to the right side of the price again, you would notice that the price hit a high and then plunge down again ! )

Am sure you would agree that is is far better than we lock in those precious profits first……

Than to see them disappear and worst….hit our STOP-LOSS end of day right…?

It is really important for you to understand the ” Daily Pips Range ” of the currency pair you are trading.

Not only is this crucial in setting a realistic ” Stop-loss & Take-Profits ” target..

But also help you achieve higher degree of success for any trade you wish to enter & with that - You would definitely be feeling MORE CONFIDENT too…

Here’s the screen-shot of the ” Entry, SL & TP  ” to share :

Total Pips for this trade = 140 Pips.

Which equates to USD $1,400.00 profits.

If I do not take into consideration the ” Daily Range ” of this currency pair …

And aim for ” Unrealistic” profit target…

I might get the Stop-Loss hit and lost USD $800….

( Instead of winning USD $1,400 now….keke )

So the main point for you here is that - Do make sure you know the ” Realistic Daily Range ” of the currency pair you are trading.

If you’re unsure….then just stick to the most ” Conservative” profits target ( TP ).

After all….locking in profits for yourself is better than to see them all being given BACK to the market anytime right ? Ouchz…

Alright. So much for this post on Forex Reversal rebound + Daily Pips Range.

Hope you also learn something valuable from it and again….feel enlighten!

Remember this..

” It is really not hard for anyone ( including you ) to make REAL Consistent Profits from trading forex …every single month - If you really want !”

As usual….I am going to shout that sentence again ( do stand back now )

>> Happy trading, Happy hunting & Even Even More ” Explosive ” gains for you too !

PS: Know your ” Daily Pips Range ” !!!!