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Price-Action Trading Strategy

Trade Set-Up #1:
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2nd-Entry at Support and Resistance

Ideal Conditions for this Trade Set-Up:

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The ideal conditions for this trade set-up are to find a 2nd-entry pattern at the
21ema that also combines either the highs or lows of a trend-channel or a
trading-range.
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Using the proper ‘entry count’ for the 2nd-entry pattern is critical for this trade
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set-up to work well.

We also want to see a ‘true-test’ of the 21ema as well as the support/resistance

level to get the highest winning percentages for this trade set-up.
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Entry Trigger:

 LONG:
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o The entry is triggered after a test of the 21ema at the lows of a bull-
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channel or a trading-range.
o Bullish/Green ‘trend’ or ‘reversal’ candlestick that closes above the
21ema.
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 SHORT:
o The entry is triggered after a test of the 21ema at the high of a bear-
channel or a trading-range.
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o Bearish/Red ‘trend’ or ‘reversal’ candlestick that closes below the
21ema
 Trade Management:

 LONG:
o Profit-Target(s):
 +10ticks, and 2-ticks below the next level(s) of resistance
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o Initial Stop-loss:
 -15ticks (or) 2-ticks below the low of the signal-bar, whichever
is smaller.
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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
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 SHORT:
o Profit-Target(s):
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 +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
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is smaller.
o Breakeven Stop-loss:
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 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
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When to Avoid this Trade Set-Up:
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Avoid this trade set-up when you see an overshoot/undershoot of the channel
because you will expect the price to move outside of the channel before resuming
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the 'price-action-cycle'.

Always avoid trading during major economic news events, and times outside of
regular market hours.
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