FIDDY BOUNCE

INDICATORS TRADINGVIEW CHART LINK

MACD (8,13,9) - EMA'S (55 - PINK, 144 - PURPLE) - SMA 21 BLACK - STOCH(5,1,2)
 THE CORE 3 DRS
DIVERGENCE REJECT A LINE SIGNAL

WHAT A TYPICAL TRADE LOOKS LIKE: WE WATCH FOR WHEN

PRICE IS NEAR THE 55 OR 144 EMA, AND WE LOOK TO FIND
DIVERGENCE, IF WE SEE DIVERGENCE, WE WAIT FOR PRICE TO
CREATE ONE OF THE CANDLESTICK PATTERNS THAT REJECT
ONE OF THE LINES/EMAS, AND ON THE CLOSE OF THE PATTERN
WE ENTER. IN THIS CASE WE ENTER ON THE CLOSE OF THE
BEARISH ENGULFING.
 DIVERGENCE LEARN MORE HERE

WHAT IS DIVERGENCE?
GENERALLY, HOW THE MARKET FLOWS IS IF THE
PRICE IS MAKING HIGHER HIGHS, THE OSCILLATOR
(MACD IS WHAT I USE) SHOULD ALSO BE MAKING
HIGHER HIGHS. IF THE PRICE IS MAKING LOWER
LOWS, THE OSCILLATOR SHOULD ALSO BE MAKING
LOWER LOWS.

IF THEY ARE NOT, THAT MEANS PRICE AND THE

OSCILLATOR ARE DIVERGING FROM EACH OTHER.

AND THAT’S WHY IT’S CALLED “DIVERGENCE.”
 REJECT A LINE A.K.A THE "FIDDY BOUNCE"

IMAGINE IF YOU KNEW WHERE PRICE WAS

GOING TO PULLBACK TO, CONSISTENTLY?
TAKE THIS CHART, FOR EXAMPLE

WHEN PRICE MADE

THIS MOVE

AND HERE
WHAT IF YOU KNEW THAT PRICE WAS LIKELY
GOING TO REVERSE AND CONTINUE HIGHER HERE?

WOULD THAT BE POWERFUL?

BEHOLD, THE 55 EMA

 DO YOU SEE THE REJECTIONS?
WE ARE LOOKING FOR PRICE TO REJECT EITHER THE PINK OR
THE PURPLE EMA
"THE SIGNAL" PRICE ACTION PATTERNS
INFOGRAPHICS COURTESY OF RAYNER TEO
MORE INFO HERE

I CALL IT A *MES* FOR MORNING/EVENING STAR

EVENING STAR IS THE BEARISH VERSION
 *I WILL REFER TO IT AS AN LL* *SOMETIMES KNOWN AS A HARAMI*

THREE INSIDE UP THREE OUTSIDE UP

 STOCHASTIC OSCILLATOR

FOR SELLS

FOR BUYS
 STOP LOSS PLACEMENT
SPREAD X2 BEYOND THE LOW OF THE
CANDLESTICK PATTERN SIGNAL

6.5 POINT SL
ON NAS100!

THIS ALLOWS THE

TRADE TO RUN UP TO
1:11.7 RR IN 12 MINUTES
 TAKE PROFIT LEVELS
A STANDARD 1:2RR IS SET

IF YOU WISH TO LET YOUR TRADES RUN

PAST 1:2RR, THEN USE EXIT
SIGNALS/TRAILING STOP TO KNOW WHEN
TO GET OUT

EXIT SIGNALS INCLUDE: CANDLESTICKS

PATTERNS AGAINST YOU, A BREAK OF
STRUCTURE CANDLE, CLOSING OVER THE 55 OR
144 EMA, AND CHART PATTERNS (M'S, W'S AND
FIBS).

DIVERGENCE AGAINST YOU SUGGESTS TO LOOK

FOR AN EXIT.

TAKING PROFIT AT A SUPPORT OR

RESISTANCE LINE IS A GOOD PLACE TO
LOOK FOR AN EXIT SIGNAL
 HERE IS A 1:2 BUT
IT KEPT ON GOING
AND YOU
WOULD'VE
MISSED UP TO
1:13RR

BREAK OF
STRUCTURE
CANDLE ARE EXITS
THAT ARE
SOMETIMES TOO
EARLY, BUT ALSO
WILL PROVIDE THE
MOST PROFIT IN
SOME SCENARIOS.
THIS EXIT
WOULDVE BEEN
1:10RR HERE
SHOULD I FOLLOW YOUR STOP LOSS AND TP LEVELS?

EVERYONES PSYCHOLOGY IS DIFFERENT, SO WE NEED TO CRAFT

OUR TRADING STYLES TO HOW OUR OWN PERSONAL MIND
WORKS. SOME PEOPLE WILL WANT A TIGHTER SL, WHICH
INCREASES THEIR POTENTIAL PROFITS AT THE COST OF LOWER
WINRATE BECAUSE YOUR SL WILL GET HIM MORE OFTEN.
WHEREAS IF YOU INCREASE YOUR SL SIZE, YOU WILL INCREASE
YOUR WINRATE BUT DECREASE YOUR POTENTIAL PROFITS.
FINDING THE RIGHT BALANCE FOR YOU IS CRUCIAL TO YOUR
TRADING FOR ANY STRATEGY. THE STOP LOSS I USE IS A PRETTY
TIGHT ONE, SO IF YOU WANT TO OPEN IT UP A BIT, YOU CAN.

I HIGHLY RECOMMEND JOURNALING YOUR TRADES, SO YOU

CAN TRACK YOUR PROGRESS AND KNOW WHAT WORKS FOR
YOU AND WHAT DOESNT. BACKTESTENTRIES AND EXITS. I
WANT YOU TO TRY TO PROVE THIS STRATEGY WRONG. YOU
SHOULD FOLLOW WHAT I'M TELLING YOU EXACLTY, WITH THE
IDEA THAT WHAT IM SAYING IS FALSE.
THIS LETS YOUR MIND OPERATE NOT FROM A PLACE OF "THIS
STRATEGY WORKS AND WILL MAKE ME TONS OF MONEY SO IM
GOING TO GO TRADE REAL MONEY AND BECOME RICH" BUT
RATHER, FROM A PLACE OF UNDERSTANDING THE STRATEGY
AND THAT YOU NEED TO BUILD YOUR CONFIDENCE IN THE
STRATEGY BEFORE YOU TRADE REAL MONEY. IF YOU BACKTEST
A WEEK OF THIS STRATEGY YOU WILL SEE SO MANY ENTRIES
AND YOUR MIND WILL KNOW THAT THIS STRATEGY WORKS.
MAKE SURE YOU ALSO DO A PROPER DEMO PHASE TO PROVE TO
YOURSELF THAT THIS STRATEGY AND THE STOP LOSSES WORK.
BECAUSE 1 PIP STOP LOSSES ARE REAL.