My Millionaire Goal

I learnt that pullback trades, coupled with traps have a very high chance of success….

Some examples…

High Probability Trades

Another good setup is “With Trend” trades with shaved tops/bottoms that occur soon after pullbacks (especially pullbacks that did not quite reach the moving average). Best is if price broke through Fibonanci retracements or trendlines.

High Probability Trades 2

Next week I’ll concentrate on looking for such trades….

Every week, there’s at least one big winner trade… if I can catch such trades and successfully avoid some sucker trades, I’ll be able to make a decent profit every week…

Beware of ’spider legs’… candles with a tail more than half the length of the full candle.

The trend is your friend… so, it is always easier to trade with the trend… Possible trend entry signals include:

1. Matching Lows/Highs
2. Outside bars

When trading reversals, looks for:

1. Fibonanci Retracements
2. MACD Divergence
3. Price action (inside bar, outside bar, reversal bar, matching highs/matching lows)
4. Price should preferably just peek (with closing) above previous high (for bearish reversal) or peek below previous low (for bullish reversal). That is, a tail should exist on the correct side.

Reversal Trades

Good Reversal Setup	A good reversal candle has a tail that is about 1/3 to 1/2 of the candle size. It first forms a new low (trapping bears who sell on breakouts) and then reverses and close strongly near the high of the candle.
Channel Overshoot	Price overshoots the channel but soon reverses back into the channel.

With Trend Trades (When a new trend/earlier reversal/failed breakout is confirmed)

Matching Lows	An earlier breakout (large candle) failed, suggesting that a new trend may have started. Candle A and B have matching lows, which correspond to a double bottom on a lower timeframe. Can sell one pip below the matching lows (failure of double bottom)
With Trend Trade	SAR is above the candles (for a downtrend). Candle B first broke above candle A (trapping bulls) but eventually reverses and close below candle A. Best entry is to sell below candle A.

In poker, if you don’t know who the mark is, you’re the mark.
In trading, if you don’t understand traps, you’re trapped.
~ Al Brooks