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Ideal situation is a market that is in consolidation with an upper Resistance and Lower Support.
Best identified as 3 touches or more just like in your trend lines where you identified the trend with
2 cycles or 3 touches. Think of this cyclicity as side-ways instead of a Trend.
BUY SIGNAL IN SC2:
o If the previous bar low breaks the previous fractal low and closes above it, we get a buy
signal. Showing us a rejection of sellers with buyers entering the market.
o The basis of the strategy is that while the market can have a large break out there are
smaller break outs that system is designed to capture
o Entry = 1 pip above the previous bar with stop loss below the previous bar low with 1:1 R:R
o Expiry time = 1 bar
o Because the signal is invalid if the Price breaks out on the down side
o We are not looking for big moves so 1:1 R:R works the best
Check Higher Time frames first whenever trading a lower time frame i.e when trading H4 check the
Daily chart
When Trading H1 check H4 and also check the trend direction in D1
Higher Time frame will always give a much cleaner picture!
Trade Double bottom or Double Top (as they are stronger Reversal Patterns)
DOUBLE TOP EXAMPLE
If the market is Trending heavily then ideally stick to other trending market strategies i.e 180 Phase
Changer and Trend Wave
Be careful with high impact news especially with the time frames below H4. As a rule of thumb
don’t trade 1 hour before or 1 hour after the news as the market consolidates the emotional
buyers and sellers and the tight stop loss in a shorter time frame is more likely to be filled and
result in a losing trade
This is a 1 bar pattern and you need to put an expiry date for 1 bar yourself.
How to set an Expiry Date and time is taught in the course on your ‘Pending order’. You cannot set
an expiry on a @ market order because you get taken into the market instantly!