Sequence invalid Entry

Explanation of
Trademanagement
colours
0 1 2 3 4

Main process Sequence

Price Action System Trademanagement
determination

0 5
Market generates a
Subprocess High/Low
Point (0)

6
0 0 Market generates a
Low/High
Addition Link Point (A)

7
Market retraces
Point (B)

an
9 8 10 11
Possible trade
No trades Market does NOT Market exceeds entries:
No sequence exceed level 0.382 level 0.382 0.500 | 0.559 | 0.618
| 0.667

29 13
12

ef
Point (0)/(C) Market clearly
becomes Entry
exceeds
Point (0)/(A) Trademanagement
retracement level

28 14

St
A new sequence
could emerge Trades invalid

27
18 17 15
Sequence invalid Market moves to
Market reacts before Market exceeds
target level
Point (0) Point (0)
Point (C)

26 20
g 19 30
16
Market does NOT Market reaches
Market exceeds Market retraces
reach target level target level
Point (B) (B) -> (C) Sequence invalid
Point (C) Point (C)
sin
25 22 21 31 32
Possible trade
Possible trade
Market reacts before Entry entries: Entry
entries:
Point (B) Trademanagement 0.500 | 0.559 | 0.618 Trademanagement
1.618 | 1.809 | 2.000
| 0.667

24 23 34 33
Market clearly
Trades invalid Market exceeds
as

Trades invalid exceeds

Sequence valid level 2.000
retracement level

35
Market retraces entire
movement
(0) -> (C)
)K

38 37 36 39
Point (C) can extend Market does NOT Market exceeds
No trades
infinitely exceed level 0.382 level 0.382

40
Possible trade
entries:
(c

0.500 | 0.559 | 0.618

| 0.667
41 42 43
Market clearly
Entry
exceeds Trades invalid
Trademanagement
retracement level

48 47 46 44
New sequence Market creates a new Market reacts before Market exceeds
activated High/Low Point (0) Point (0)

45

Sequence invalid

(c) 2019 Kassing Stefan Version v1.06

 Sequence
Price Action System Trademanagement
determination

Entry Position 35
Market makes a Trading System
No valid Point (0)
move

Market ends
Market creates an
movement and Possible Point (0)
absolute High/Low
changes direction

an
Market makes a
No valid Point (A)
move

ef
Market ends
Market creates a
movement and Possible Point (A)
Sub- High/Low
changes direction

Market makes a
corrective move
Market exceeds
level 0.382

St Confirmed Point (0)

and Point (A)
Entry System
g
Notes on trademanagement
Notes on sequence determination:
1) Risk
sin
1) A sequence can only be created at the beginning or
end of a movement. 1.1 Risk a maximum of 1-3% per trade - with a small account do not risk 1-3% per trade, but divide!

2) A sequence can not be created in the middle of a movement 2) Diversification

unless it results from an already active larger sequence.
2.1 Trade all markets if they give a valid entry..
3) A Point (0) usually represents the start of a movement, often as 2.2 Ideally hedge situations arise.
absolute High or Low.
3) Targets
4) Point A is only confirmed when the market retraces the
movement (0)-(A) and moves to our entry level. Risk Reward Ratio
as

100% Retracement
5) Sequence is activated when the market made a successful 100% Extension
Retracement and Point (A) is exceeded / undercut. 161-200er Extension
An activated sequence has a higher chance to reach the target Dailyrange Link: Forex Volatility Calculator
level than a not yet activated sequence.
4) StopLoss

4.1 Reduce risk = halve SL / max. 5 Pips SL

4.2 Move SL to BE if the market is in a bull/bear retracement level before your double profit
)K

4.3 Do not move the SL (except on BE) - Trade hits either BE or target level
4.4 Spread is not considered
4.5 Single trade strategy: If the market is within C-Target range (200 Ext) put your SL 20 Pips above

5) Entry

5.1 Consider Spread

5.2 The entry areas should not overlap with the SL of the previous entrylevel
5.3 The entry is traded as long as it is valid
5.4 If the StopLoss of the 0.5 retracement entry covers all other entry areas (50-66.7) -> reduce the SL
(c

and open another trade at 66.7 retracement level

6) General

6.1 If X trades hit SL and it is possible to compensate the losses with one trade -> Take your profit!
6.2 Profits should be secured intraday.
6.3 Trading in the direction of the sequence is less risky than trading against the sequence.
6.4 Theoretically, wave C can be of infinite length..
6.5 C-Wave is also considered to be completed if the market reacts 4 Pips before the target level (max. 5 Pips tolerance)
6.6 Retracement of the BC-Move always represents a possible reentry (if sequence is activated)
6.7 If the market reacts at the 200 extension level and successfully retraces
the entire move (0)->(C) Target level no longer gives entries.
6.8 If Trade is stopped out at BE -> get back in
6.9 From a sequential point of view, the market may move up to Point (0) (if B-C movement is dominant / impulsive).
From an entry point of view, only the 50-66.7 retracement level count.

(c) 2019 Kassing Stefan Version v1.06