Sc

Price-Action Trading Strategy

Trade Set-Up #2:
ho
2nd-entry-failure at completion of 'price-action-cycle'

Ideal Conditions for this Trade Set-Up:

ol
The ideal conditions for this trade set-up occur in 2 scenarios:

1. At the end of the 'price-action-cycle' when the measured-move has

O
occurred and we are looking for price to reverse in the opposite direction.
2. On a ‘range-day’ it will occur at the high/low of the day which is also the
fT
high/low of the trading-range.

We are looking for a 2nd-entry-failure pattern to occur to catch traders who are
unaware of the pending reversal that will soon occur in the market.
ra
Entry Trigger:

 LONG:
d
o The entry is triggered after a test of the 21ema.
e.
o Bullish/Green ‘trend’ or ‘reversal’ candlestick that closes above the
21ema.
 SHORT:
co
o The entry is triggered after a test of the 21ema.
o Bearish/Red ‘trend’ or ‘reversal’ candlestick that closes below the
21ema
m
 Trade Management:

 LONG:
o Profit-Target(s):
 +10ticks, and 2-ticks below the next level(s) of resistance
Sc
o Initial Stop-loss:
 -15ticks (or) 2-ticks below the low of the signal-bar, whichever
is smaller.
ho
o Breakeven Stop-loss:
 Move stop-loss to point-of-entry +1-tick after first target
o Trailing Stop-loss:
 Use the ‘2-candle trailing stop-loss’ after first target
ol
 SHORT:
o Profit-Target(s):
O
 +10ticks, and 2-ticks above the next level(s) of support
o Initial Stop-loss:
 -15ticks (or) 2-ticks above the high of the signal-bar, whichever
fT
is smaller.
o Breakeven Stop-loss:
ra
 Move stop-loss to point-of-entry +1-tick after first target
o Trailing Stop-loss:
 Use the ‘2-candle trailing stop-loss’ after first target
d
When to Avoid this Trade Set-Up:
e.
Avoid this trade set-up on STRONG trending days where there is a significant
longer-term channel and a clear direction for the entire trading session.
co
Always avoid trading during major economic news events.
m