Hello Traders,
Today's lesson focuses on a "Sell Setup Confirmation" strategy. When we see a significant spike that triggers stop orders above a certain area, it can signal a potential sell opportunity.🔽
Here's how to identify and execute this strategy:
1. Liquidity Area: This is a key zone where a lot of stop orders are placed. A spike into this area suggests a shift in market sentiment.
2. B.O.S (Break of Structure): Look for a clear downturn pattern indicating sellers are taking control.
3. Entry Point: Once a confirmation of the downtrend is observed post-spike, it's time to consider a short position.
Risk Management Tips:
- Set your stop loss just above the liquidity area to minimize potential losses.
- Determine profit targets based on a risk-reward ratio (R:R). Common ratios used are 1 R:R, 2 R:R, and 3 R:R, which help in defining clear exit points for taking profits.
Remember, understanding market structure and executing with discipline are crucial for successful trading.✔️
@Coach 🥳
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A Trader's Strength Is Truly Shown Not In Moments Of Profit, But In The Resilience Displayed During Losses.
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Bullish Marubozu candles are our green light for a strong uptrend. They usually pop up after the price has been moving sideways, signaling a fresh buying spree.🔼
Here's the game plan:
- Entry: When you see a Marubozu, that's our cue. We get in on the action at the opening of the next candle.✔️
- Stoploss: We place this below the Marubozu to protect our play.⚠️
- Take Profit: Aim for double the distance between entry and stoploss (R:R 1:2), banking on the momentum.💵
Remember, a Bullish Marubozu doesn’t play solo—it rides with the trend. Spotting one means there's a high chance the price will keep climbing.🔍
Stay sharp, and Trade smart!
@Coach🥳
💬 Trading Tip of The Day 👇
You Might Lose Today, But You Can Still Win The Week.
A Tough Week Can Lead To A Successful Month.
A Bad Month Can Turn Into A Great Year.
Even If You Start Small And Fail, You Can Build Something Big.
Think About The Long Run.
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Fam 👋
In these charts, the continuation pattern (top left) shows the price dipping, flattening out, then dipping again, like catching its breath before the next drop.🔽
The reversal pattern (top right) is the opposite: the price spikes, levels off, then drops, signaling a change in trend.🔽
Another reversal pattern (bottom left) dives, steadies, then soars, indicating a switch from falling to rising.🔼
Lastly, the continuation pattern (bottom right) climbs, pauses, and climbs again, maintaining its upward momentum.🔼
The "entry" points? They're our signal to jump in.✔️
@Coach 🥳