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This set-up uses a well-defined trading range with double-tops and double-
bottoms to buy-the-lows at support and sell-the-highs at resistance. The most
important thing to remember with this set-up is to look for the sideways-trading-
range that is very easy to find. Look for double-tops and double-bottoms to tell
us we have price-action moving in a clearly-defined trading range.
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Set-up Characteristics:
Entry Trigger:
Long Trade:
Short Trade:
Stop-loss is placed according to your risk tolerance, below the most recent
swing-low on your entry chart (or) below the lows of the sideways-trading-
range.
Profit-targets can be placed at the following locations
o The 50% retracement of the most recent major swing-high down to
swing-low.
o The Highs of the sideways-trading-range
o Any major resistance level such as a trend line, or big-round-number
Trailing Stop-loss
o Trail your stop-loss using a swing-low as price moves in your direction
higher or use the 61.8 retracement of the most recent swing-low up
to the current price of the market you are trading.
Stop-loss is placed according to your risk tolerance, above the most recent
swing-high on your entry chart (or) above the highs of the sideways-
trading-range.
Profit-targets can be placed at the following locations
o The 50% retracement of the most recent major swing-high down to
swing-low.
o The Lows of the sideways-trading-range
o Any major support level such as a trend line, or big-round-number
Trailing Stop-loss
o Trail your stop-loss using a swing-high as price moves in your
direction or use the 61.8 retracement from the major swing-high at
the highs of the sideways-trading-range and the current price as we
move lower.