Let's Make 20pips - Simple System

HOLA!

Using a simple, non-complicated approach for 20 pips on each trade.

RISK - 20PIPS / REWARD -> 20PIPS

THE REJECTION TRADE

1. IF THE CLOSE PRICE OF A BEARISH BODY BAR IS REJECTED TWICE BUY
2. IF THE CLOSE PRICE OF A BULLISH BODY BAR IS REJECTED TWICE SELL
3. ENTER AS CLOSE AS POSSIBLE TO THE REJECTED CLOSE PRICE
4. BREAKEVEN TRADE ONCE UP 13PIPS
5. 4-HOUR CHARTS ONLY! (GOOD ALSO ON DAILY BUT RISK HIGHER 30-45PIPS)
6. IF WICKS OF REJECTION BARS ARE MORE THAN 12PIPS FROM THE CLOSE PRICE DOUBLE THE STOP & THE LIMIT.

HIGHER PROBABILITY
THE WIN PROBABILITY IS HIGHER WHENEVER THE REJECTION BARS CLOSE IN FAVOR OF THE POTENTIAL SETUP.
FOR EXAMPLE, IF A BEARISH BAR'S CLOSE PRICE IS REJECTED TWICE, AND THE REJECTION BARS BOTH CLOSE WITH A BULLISH BODY, THEN THE LIKELIHOOD OF A STRONG SUCCESSFUL TRADE INCREASES. THIS ALSO MEANS THE REWARD IS LIKELY TO INCREASE (MORE THAN 20 PIPS).


THE CONTINUATION TRADE

A continuation setup occurs when rejection fails OR the rejection level is soon converted to a continuation level. Essentially, one or more bars, usually one, rejects a close price, then there is a close beyond the close price of the REJECTED BAR. This suggests a continuation in the trend of the BAR WITH CLOSE BEING TESTED. See attached example.

1. IF THE CLOSE PRICE OF A BEARISH BODY BAR IS REJECTED, AND SUBSEQUENTLY PRICE CLOSES BELOW THE CLOSE PRICE OF THE BAR SELL
2. IF THE CLOSE PRICE OF A BULLISH BODY BAR IS REJECTED, AND SUBSEQUENTLY PRICE CLOSES ABOVE THE CLOSE PRICE OF THE BAR BUY
3. STOP SHOULD BE 6 PIPS ABOVE/BELOW THE BAR WHICH CLOSED BEYOND THE CLOSE PRICE OF THE BAR BEING TESTED
3. LIMIT SHOULD BE 2 TIMES THE RANGE (HIGH-LOW) OF THE BAR WHICH CLOSED BEYOND THE CLOSE PRICE OF THE BAR BEING TESTED



SIGNIFICANCE OF FRACTALS
When a setup occurs on a bar in the fractal structure it tells me its a potential swing trade. Therefore these setups are stronger.

IMPORTANT: TIMING IS KEY! TWO TRADERS CAN TAKE THE SAME TRADE AND GET DIFFERENT RESULTS DUE TO TIMING OF ENTRY. WE WANT TO ENTER THE TRADE ON THE VERY FIRST RETURN TO THE REJECTED AREA.

THAT'S IT!

Let's trade it!

LONG USD/CAD.

SHORT AUD/CAD.

Are you using fractals to determine support and resistance zone?

Sorry had to run out for work. The only significance of the Fractals for me, is that when a setup occurs on a bar in the fractal structure it tells me its a potential swing trade. Therefore these setups are stronger.

I dont understand what oolah said.

Please anyone help.

Thanks,

Hi antonsatu,

I edited my previous response for clarity.

Please explain in detail the meaning of "BODY BAR IS REJECTED".

Thanks!

Hi kilion,

We are watching price reaction at the CLOSE PRICE OF the bar....

A bar with that closes with a bullish body, closes higher than the open price. So if, we see price action following that close, showing a close below that bar's close price and then a spike up to or near the bar's close price, that fails to close above that close price, we assume weakness at that close price and go short.

EXAMPLE - LONG TRADE

Short, eurusd, gbpjpy, eurjpy, audusd

sell limit orders: Nzdusd & nzdjpy

Is it really a good time to be shorting the pound? Current events may interfere with the integrity of your system.

Thanks oolah. It is clearer about the method now.
Would you please explain further the entry point?

Thanks,

after you wait for the second rejection, do you put a limit order for the price to come at your last close price area?

How do you enter the trade?

Hi oolah, could you please give us more examples of that pattern? Thank you.
And, do we open position at the open candle as soon as we see the two rejections?

ENTRIES

Hi everyone,

I have been taking some hasten trades due to lack of time. Just seeing everyone's messages.

Its best to look for a trade after the close of a 4hour bar. Entry should always be at the close price being rejected or as close as possible to it.

The Low/High of the second rejection is a great entry area.

Correct Keikor

LONG AUDCAD

TP +20pips

SHORT EURUSD...I am seeking to hold this one to the last rejected bearish close on the current swing because the setup has occurred on bar in a fractal structure.