Risk Reward Ratio.
After posting the DAX chart I thought it would be a good time to show why I rejection candles.
Chart 1 shows the way I would enter the trade. Chart two is how I have seen the majority and including myself enter trades using a safe entry.
N.B. I am just using DAX as an example as I had the charts open. I am happy to show the same with FX.
The safe method is getting on the train as it leaves the station. I am in no way saying that you cannot be successful trading this way because I traded like this for years.
The issue I had with trading the safe way was the snail pace that my account was going up.
Why was I risking $100 to make $200 only to get a few losses and go backwards? I did not like the odds.
Many of you have probably looked at what I have posted in this thread and said he'll be getting stopped out a fair bit entering on rejection candles and you would be right however, trading rejection candles can and will give you high RR (usually a minimum of 5R) The best RR I have had was over 17R but it takes time to spot the runners. Anyway before you place a trade this coming week have a look and see if there is a rejection candle before your entry
After posting the DAX chart I thought it would be a good time to show why I rejection candles.
Chart 1 shows the way I would enter the trade. Chart two is how I have seen the majority and including myself enter trades using a safe entry.
N.B. I am just using DAX as an example as I had the charts open. I am happy to show the same with FX.
The safe method is getting on the train as it leaves the station. I am in no way saying that you cannot be successful trading this way because I traded like this for years.
The issue I had with trading the safe way was the snail pace that my account was going up.
Why was I risking $100 to make $200 only to get a few losses and go backwards? I did not like the odds.
Many of you have probably looked at what I have posted in this thread and said he'll be getting stopped out a fair bit entering on rejection candles and you would be right however, trading rejection candles can and will give you high RR (usually a minimum of 5R) The best RR I have had was over 17R but it takes time to spot the runners. Anyway before you place a trade this coming week have a look and see if there is a rejection candle before your entry
Your trade order needs to be in the right place at the right time.
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