Your Favorite Trading Setup

i think you are missing the whole point of this thread. its about specific steps that must be taken. You open your position if those steps are met. when you are convinced that you are on the right side of the market you move stops to b/e. and if you wish you take partial profit. thats it. you dont need to look for anything else. Other setups have their own steps that must be followed. No analysis involved here as far as my setup is concerned.

Thanks, I think I've got it, what I mean is that I've been looking at this kind of thing, but working on pinning it down, and this looks like a plan.

Hi Kwonkicker

Well done on the thread. I use simple EW the way you use it.

identify 5 drives up (or down)
wait for 3 waves down (or up)
buy (sell) for the next 5 drives up (down)

Well done on the thread

Olu

I have two favorite "setups" - the Breakout Pullback and the First Retracement after Trend Line Break.

Breakout Pullback - I primarily watch for these on the 5 minute, but its applicable to any bar interval. I box the most recent range. I wait for price to move with emphasis outside the range and typically wait for at least a single 5 minute bar close outside the resistance or the support, whichever broke first. There are two ways to play the pullback: either wait for confirmation, i.e. price pulls back and touches the broken support or resistance, and then closes away from the level in the direction of your trade, or fade the pullback, i.e. enter as soon as it gets back to the broken support or resistance. I typically prefer to enter on the fade as you have less price risk (i.e. you get a better entry price), but of course, you have more information risk (i.e. price isn't moving in the direction of your trade)



First Retracement - I primarily watch for these on the 1 minute, but again, its applicable to any bar interval. I find obvious points of lower highs or higher lows and connect them with a trendline and then wait. Once price breaks my trendline (for a basic rule-of-thumb, breaking the trendline can be equated to closing beyond it), I will wait for price to pullback. I typically enter these on a sell or buy stop above or below the last retracement candle - i.e. in the image, on the down trend line break, I would put a buy stop above the first red candle. This is not filled. I would then move it above the second red candle - this is then filled on the yellow bar with the arrow. I typically put the buy stops about 1-1.5 full pips beyond the high or the last retracing bar and the sell stops about 1-1.5 pips below the low of the last retracing bar.

Hope this helps -

More trend line break and first retracement entries - I also marked subsequent entries to add to your trade in profit and really compound profits on any given trade.

[Note: This is an 89 tick chart, but again its applicable to any bar interval.]

thanks olu. im a lazy person, but even a complex method such as ew can be simplified for my use im guessing this topic will die, cuz i never intended to post trades regularly, share setup and leave it be. if anyone is lucky enough to stumble upon this thread good for them.

thanks for the contribution, and live setups. retest-continuation is a basic model of market trends, and can make decent money if practiced properly.

EURUSD trade is a pain in the *ss, taking almost forever. the price has not moves from where it was a week ago. its possible that the abc correction that we bought has not ended just yet. if we break 1.3878 i might buy it again with stop below 1.3670.




I just bought GBPJPY, a scalp trade, risking about 150$. will close half soon, or move stops to b/e to eliminate risk.

hi folks.


this trade kicked my ass in a way that it rallied very hard and fast right after hitting my stoploss. Lucky for me i stuck to my plan and closed half at +15, leaving the rest with 15pips stoploss thus reducing the risk to zero. very useful tactic i urge everyone to adopt.

in this case tho the expected has happened - price plunged, but not before i sold it. Ill explain the details below.

I didnt have the chance to post the setup, but the idea is very much the same, price completed an a=c pattern, waited for an impulsive decline and sold the pullback. The highlighted greenish zone was filled with short positions, they are mostly closed now with 1:2 RR overall, i left my best position just in case the market had reversed here. The red line was obviously my stoploss.

Notice the blue line drawn from the top of wave A, this is a very important line, when market topped at the end of wave C, this line is crucial. In this case, the fact that price pulled back and tested the line from above eliminates the possibility of uptrend because of a rule: wave 1 and 4 cant share same price.



edit: BTW as you can see im still holding by long position from last week. its a free trade (half is closed with profit) so im not worried, and still looking to buy if this one gets busted.

Clean charts, strong trend, and good risk-reward that’s my go-to setup.

Thank you for awakening the sleeping giant after eleven years.