My Trading Plan

Falcon Trading Guidance

MARK HUTCHINSON
FALCON FX PRO MEMBER

TABLE OF CONTENTS:

Page 1 Table of Contents

Page 2-9 Risk Entry

Page 10-11 Reduced Risk Entry

Page 12-14 Management

Page 15 Trade Checklist

Page 16 Quotes

Page 17 Signature

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Risk Entry
My Go-To Setups

Risk Entry #1
Entry Criteria:

❏ Risk Entry Top or Bottom of Structure

❏ Three Touch Reversal Channel

❏ 1H Retrace Candle

● Always wait for the 1H close before setting an entry order a few pips below. Alternative
is entering on a 15M rejection for a more precise entry.

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Risk Entry #2
Entry Criteria:

❏ Risk Entry Top or Bottom of Structure

❏ Breakout of Ascending or Descending Channel

❏ 1H Hover

● Minimum of 6-8 1H candles before placing an entry order 2-4 pips above or below the
correction. The Hover is more probable if the correction that forms is tight either flat or
with a slight ascending/descending nature to it.

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Risk Entry #3
Entry Criteria:

❏ Risk Entry at the Top or Bottom of Larger Flag Continuation

❏ Third Touch on Top or Bottom of Flag

● Ideally we get a rejection candle on the third touch. 1H retrace candles are the ideal
entry point however any reversal candlestick formation is valid on the third touch.
Override is if price reacts to the double top or double bottom. It is important to
remember that even if the candles are impulsive leading to the third touch it is still a
valid setup.

Risk Entry #4
Entry Criteria:

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 ❏ Risk Entry at the Top of Structure

❏ Double Top Formation

❏ Ascending Channel

● Where price is within the structure is an important aspect to note when taking these
positions as it can reject multiples times before finally committing to itself. Be prepared
to enter multiple times as price can stall at the top of the structure before entering the
impulsive leg.

Risk Entry #5
Entry Criteria:

❏ Risk Entry at the Bottom of Structure

❏ Double Bottom Formation

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 ❏ Descending Channel

● Be aware that price can break the double bottom and create a rejection, catching people
on the wrong side of the market which allows us to capitalise on the move with higher
probability. Important to wait for a rejection on the third touch before setting entry order.

Risk Entry #6
Entry Criteria:

❏ Risk Entry at the Top of Structure

❏ Ascending Channel within Ascending Channel

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 ● Understanding that patterns within patterns always increase our probability especially
when price action is at the top of a structure. When price starts to stall at the top of
structure with corrective nature we begin to look for sell setups. If price breaks
impulsively to the upside, staying aware of the fact that it can still break back into the
pattern. If it forms a continuation pattern to the upside it is confirming the breakout.

Risk Entry #7
Entry Criteria:

❏ Falcon Flag Continuation

❏ Risk Entry at Top or Bottom of Flag

● It starts off as a reduced risk entry, which is a valid setup but when forming a Falcon
Flag will usually result as a break even. Price will retrace back to form a double top or

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 bottom which presents us with an opportunity to enter the market. May form a third top
or bottom depending on the flag, the one below is highly probable because of the
corrective channel on its way to the double top within the flag.

Risk Entry #8
Entry Criteria:

❏ Utilizing the 15M Chart for Precision

❏ Works Across All Other Go To Setups

● Remembering to always look for 15M entries within the impulsive phase of the market.
Forecasting the impulsive leg gives us the awareness to look for these precision entries
on the 15M chart when they present themselves. The first 15M flag as in the case below

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 is always the most probable flag to enter whether it be a buy or a sell. The 15M brings
clarity to otherwise unclear 1H price action allowing us to enter on 1-2 hour corrections.

Reduced Risk Entry

My Go-To Setups

Reduced Risk Entry #1

Entry Criteria:

❏ Reduced Risk Entry

❏ Tight Bull or Bear Flag

❏ Following First Impulsive Move

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 ● These corrections are always more probable when they are flat and tight in nature. If the
flag forms any kind of ascent or descent as it is forming it is an indication that the
correction can develop into a larger version of itself, either forming a Falcon Flag or
larger structure. Highly probable after the first impulse following a reversal.

Reduced Risk Entry #2

Entry Criteria:

❏ 15M Flag Continuation Pattern

❏ Taken After First Impulse

● For the flags that are not as clear on the 1H chart, the 15M timeframe can filter the price
action and present clear entries on even one to two hours of correction. The first 15M
flag in an impulsive move is always the most probable and presents the opportunity to
enter the position if the 1H hour entry was missed. Setting the entries 2 pips below the
flag after 6-8 15M candles have closed.

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Management
Management Styles

Management Style #1
Key Points:

❏ Higher timeframe structure with a clear pattern

❏ Forecasting the impulsive leg of the move

❏ Confirmation of the impulsive leg

❏ More relaxed stop losses leaving room to breathe

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 ● Price has formed a very clear Daily or Weekly pattern and price has committed to itself
confirming the pattern. When we get an impulsive break of a pattern on the higher time
frames it becomes even more clear to utilize this management approach. This approach
is in alignment with the “Quick Tips - Season Three - Episode Two - Longer Term Holds”.
I utilise a semi-aggressive management style in conjunction with this approach.

Management Style #2
Key Points:

❏ Managing after impulsive breaks of corrections

❏ Progressively more aggressive management further into the move

❏ When it approaches the beginning of the structure locking in tight for profit
as this is when we could see much deeper pullbacks

● This approach to management typically uses the 90% rule and phases within the market
to determine the level of aggressiveness in stop trailing. I will adopt this management
approach for the vast majority of my positions as it allows me to capitalise fully and lock
in profit while still being reasonable enough to allow the trade room to form slightly
deeper pullbacks like Falcon Flags.

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Management Style #3
Key Points:

❏ Using this style of management during shorter term moves

❏ Anticipating a 1H candle rejection or retrace at the beginning of correction

❏ Recognizing if it is developing a reversal pattern which gives me more of a

reason to aggressively manage the trade

● Looking left at the beginning of the structure or pattern to determine whether or not this
management style fits the position. When I decide to use this style of management and
the 1H retrace or rejection candle appears I will trail my stop about 4-5 pips above the
candle close.

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Trading Plan
Trade Checklist

❏ Is the overall move supported by higher timeframe structure or pattern? (Weekly/Daily)

❏ Does this position fall under one of my outlined Go-To setups?

❏ Have I fully forecasted the multiple different possibilities of price action?

❏ Does this position offer up at least a 3:1 Risk to Reward to my first outlined target?

❏ Can I safely enter this position with a minimum of a 15 pip stop loss?

❏ Is this my own analysis or did I take a hint from someone else with another opinion?

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 ❏ Have I accepted that this trade could indeed be a loss, regardless of how it has formed?

❏ Are the spreads low enough to safely enter the position?

❏ Am I entering the position from a calm and collected state of mind?

❏ Is this pair or commodity on my targeted watchlist?

Psychology
Quotes

Quotes:
1. “In order to trade in the zone, you must first understand how to learn in the zone”.

2. “Patience is not about waiting, but about keeping a good attitude while waiting”.

3. “Patience is the calm acceptance that things can happen in a different order than the
one you had in mind”.

4. “Consistency develops through focusing on the power of the winning trades, not the
losses”.

5. “News creates volatility, not direction”.

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 6. “Not one bad day, week, or month will make or break you as a trader”.

7. “In order to forecast effectively you first have to backtest effectively”.

8. “Understand the probabilities but also the possibilities”.

9. “Above all else the nature of the market will always guide us in the right direction”.

10. “Humble yourself or the market will do it for you.”

My Trading Plan
Signature

MARK HUTCHINSON
FALCON FX PRO MEMBER

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