TURNCOAT RESISTANCE & SMA 200 DYNAMIC SUPPORT CONFLUENCE EURGBP
We have a valid buy setup with a pending order waiting to be filled on EURGBP and this is with a potential of 2 to 1 Reward to Risk.
Yesterday EURGBP formed a valid sell set-up which was published but canceled later because price retraced above our inside bar pattern without our pending order filled, so we avoided a loss there by entering with a pending order at the break of the high/low of the inside bar breakout candle and not at the market.....
Yesterday retracement from our entry has now formed a valid buy setup above this confluence zone......
THE TRADING RULES FOR THIS SETUP IS AS FOLLOWS....
* SMA 200 and supply/resistance zone confluence detected
* Check the previous price swings at the zone and look for atleast a price swing test of the zone
* Price moving up towards the confluence zone and price breakout of the confluence zone with an inside bar bullish breakout.
* The wick of the mother bar must touch both the sma 200 and supply/resistance zone
* Check price correlation to see if the pair is correlated with any opened position in other to avoid doubled risk. {Correlation for all opened positions must either be WEAK or NONE}.
* ENTRY :- Pending order at the high of the inside bar breakout candle
* STOPLOSS :- SL to be set at the mother bar high behind the sma 200 which is 58pips
* TARGET :- 2:1 RRR which is 116pips
* TRADE MANAGEMENT :- 1-2% Risk, Reduce stoploss by half at 1:1 RRR and move stoploss to breakeven at 150% profit i.e 1.5:1 RRR. {Ensure our breakeven level is not beyond any trouble area else skip the trade}.
NOTE: If price go below the mother bar of our inside bar pattern before triggering a breakout to the upside to fill our BUY STOP order, then this trade will be invalidated and canceled.....Please take note
Yesterday EURGBP formed a valid sell set-up which was published but canceled later because price retraced above our inside bar pattern without our pending order filled, so we avoided a loss there by entering with a pending order at the break of the high/low of the inside bar breakout candle and not at the market.....
Yesterday retracement from our entry has now formed a valid buy setup above this confluence zone......
THE TRADING RULES FOR THIS SETUP IS AS FOLLOWS....
* SMA 200 and supply/resistance zone confluence detected
* Check the previous price swings at the zone and look for atleast a price swing test of the zone
* Price moving up towards the confluence zone and price breakout of the confluence zone with an inside bar bullish breakout.
* The wick of the mother bar must touch both the sma 200 and supply/resistance zone
* Check price correlation to see if the pair is correlated with any opened position in other to avoid doubled risk. {Correlation for all opened positions must either be WEAK or NONE}.
* ENTRY :- Pending order at the high of the inside bar breakout candle
* STOPLOSS :- SL to be set at the mother bar high behind the sma 200 which is 58pips
* TARGET :- 2:1 RRR which is 116pips
* TRADE MANAGEMENT :- 1-2% Risk, Reduce stoploss by half at 1:1 RRR and move stoploss to breakeven at 150% profit i.e 1.5:1 RRR. {Ensure our breakeven level is not beyond any trouble area else skip the trade}.
NOTE: If price go below the mother bar of our inside bar pattern before triggering a breakout to the upside to fill our BUY STOP order, then this trade will be invalidated and canceled.....Please take note
Trade active:
BUY STOP FILLED. Trade now active...
May the pips be with us....
May the pips be with us....
Comment:
Even though price immediately moved strongly against us the moment our order was filled, we can see the dynamic SMA 200 support doing a great job here at proyecting out stoploss......This is why we always place our stop few pips behind the sma 200
Trade closed manually:
Trade closed manually for +1pips because price keep ranging and has formed another supply zone.....
