Hello Traders,
…this is an amazing trading setup I missed that I’d like to share with you.
In fact, I saw the setup building up many days before it was going to happen…
But guess what?
I just missed it by a couple of hours and the crazy thing was… If I had taken this trade it could have fetched me 300 pips of profit easy.
HERE’S WHAT ACTUALLY HAPPENED
I was watching this trade setup and I don’t know, for some reason(s) I was away just for about 2hrs and when I came back, the trade setup had already formed and the price was already moving up.
No point chasing the bus!
I waited to see if there would be any pullbacks so I can buy into it but nothing of that sort happened to my satisfaction that could allow me to get into a buy trade.
This was on GBPCHF currency pair. Let me show you the charts of the trading setups so you you will understand what I am talking about here:
Here is the Daily Chart of the Trading Setup:
Here is what you would have seen if you were watching in the 4hr timeframe:
This is what you would have seen in the 1hr timeframe:
This is what you would have seen on the 15min timeframe:
This is what you would have seen on the 5min timeframe:
DID YOU NOTICE?
Did you notice how the price reacted to trendline? Did you notice those bullish candlesticks in each timeframe? This is a very simiple way to trade. The risk reward for this trade is huge.
I could have risked 30 pips and made 300 pips so risk to reward ratio would have been 1:10.
Such trades take days to reach their profit targets. For this one, it took 3 days.
So when you take trades like this and thinking about setting your profit target, you should first look at the chart and ask yourself this question:
Where can the price potentially go if I buy (or sell) here? Then set your take profit target based on what you see on your chart.
And this is what happened:
In my opinion, this kind of trading is much better than taking so many little trades in smaller timeframes to make 450 pips. Which means you have to actually trade a lot to achieve this kind of profit. But with the example I’ve shown, can you see how one trade can make a big difference?
THE PROBLEM I HAVE…
The trading setups given here are based on trading of trendlines. You can’t really set buy limit or sell limit orders and expect price to hit them and activate them when price hits trendlines. It’s difficult.
Why?
Because trendlines are at an angle! So you’ve got to sit and wait and watch for price to touch or come close the the trendline then buy or sell.
But this is not the case if you are trading horizontal support and resistance levels.
If I was watching to buy or sell on a horizontal support level level and I know that the price is heading near to the level and If I have other commitments(tasks) to do that that will take me away from the screen, then its very easy to set a sell limit or buy limit order and place my stop loss a few pips outside of the support or resistance level and go way.
This is quite hard when you are dealing with trendlines.
However I have come up with technique for doing that with trendlines but that’s for some other time…
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Thankyou.
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