Mastering the Fakeout / Stop Hunt Candle

In all probability the most generally forgotten & worthwhile methodology!

First, I'll ask that you simply learn this web page, particularly the disclaimer, it's going to save me having to sort it out once more. Thanks

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Disclaimer & Warnings:

1. That is NOT the Holy Grail. No such factor exists!
2. This methodology is designed for H4 Time frames and above (it does work on decrease time frames).
3. This methodology does have excessive drawdowns, however SL's are by no means hit (If completed accurately)
4. Do NOT over-leverage your account. 0.01 lot per $1,000 can be loads.
5. Be ready for 50 - 200 pip drawdowns (increased up a time-frame, greater the SL, however so is the TP)
6. Be ready that trades could be open for 2 - 20 days or longer, however SL needs to be nicely clear and free from assault.
7. At all times go together with the pattern, and or act off of applicable provide/demand & assist/resistance if it is a counter setup.
8. Use a script that hides your TP and SL and path steps to Break Even when 50 p.c of your TP worth has been reached. Then transfer it once more to 50 p.c of its total transfer from entry to present worth when 75 p.c of the TP worth has been reached.

Set, then Overlook Technique!

Perfect for these with little time obtainable

Hooked up Picture (click on to enlarge)

https://www.forexfactory.com/showthr...5#submit12046535 It is most likely obtained extra now?

The Routine

No Routine, No Payday!

1. Ensure you observe the pattern when setups are discovered - in case your goal is to Purchase the pair, be sure to are wanting in an Uptrend - solely do counter pattern setups after you good the with the pattern setups. So, attract your diagonal trendlines!
2. 1. or latest provide/demand
   2. or assist/resistance.If a counter pattern setup is discovered be sure it is coming off or close to the diagonal trendline,
3. 1. It will act as your TP (Take Revenue) degree.Calculate the candle bar's size from its excessive to its low.

    

4. 1. Time frames increased than that 300+ can be inside the attackable zone.
   2. You may must experiment or again take a look at what the largest drawdown is when setups have been discovered, discover the imply common and that can be your lowest quantity to position your SL at. Add 50 p.c to that to seek out your Max SL.
   3. Then modify your lot measurement to compensate for a bigger SL.
   4. Don't fret about reward to threat right here. It is about profitable constantly!150-200 pip SL's are ideally suited on H4 and Day by day Time Frames.

Certainly one of two issues will occur:

1. Your commerce will immediately go into revenue or will fluctuate out and in of revenue inside that bar, now after I speak about this, I am solely going to be referring to the 4H time-frame on this total doc. And the commerce could be open for 2 days or longer, so be ready. Typically the TP is hit inside the 4H bar.
2. Your commerce will go in opposition to you for a while, immediately or a while thereafter. When you calculate your SL accurately try to be nicely inside any attackable space to cease hunt you.

N.B:
If do that accurately off of the proper areas when setups are discovered, or counter setups, the drawdown can be respectfully low and ideally inside your allotted threat & cash administration (instance proven under).

Above all, have persistence.

It is not going to work if you have no.
Calculate your threat first.

When you do not wish to lose greater than 10 p.c of your stability. Calculate for it.

Divide the whole Stop Loss Worth into your whole threat. Then divide that by 10 to get lot measurement.

If the SL will not be massive sufficient, add extra, then recalculate for the appropriate lot measurement to make use of, it's going to be smaller this time.
Then sit again and watch what occurs.

If you are going to open a 2nd commerce on a unique pair, you may should allot on your floating fairness, and never your stability. You solely work out of your stability you probably have no different trades open.

Under are the setups, guidelines and its variations.

The Guidelines

Bear in mind these and you will be fantastic!

BUY SETUPS:

1. Ought to come off or close to your diagonal trendlines, Assist, or Demand.
2. We're in search of a 2-bar formation in the ideally suited location
   1. 1st bar must be a Bear Bar.
   2. 2nd bar must be a Bull Bar.
   3. The Bull bar's low (2nd bar) have to be decrease than the Bear Bars low (1st bar).
3. Each bars ideally ought to have a wholesome physique in relation to its total measurement in size from excessive to low.
4. Wicks/Shadows ideally must also have noticeable size, i.e., not be tiny.

SELL SETUPS:

1. Ought to come off or close to your diagonal trendlines, Resistance, or Provide.
2. We're in search of a 2-bar formation in the ideally suited location
   1. 1st bar must be a Bull Bar.
   2. 2nd bar must be a Bear Bar.
   3. The Bear bar's excessive (2nd bar) have to be increased than the Bull Bars excessive (1st bar).
3. Each bars ideally ought to have a wholesome physique in relation to its total measurement in size from excessive to low.
4. Wicks/Shadows ideally must also have noticeable size. i.e., not be tiny.

The Setup - With the Development Setups

Can you notice the others?

Let's check out what we did right here.

1. We recognized the pattern - clearly, it is Up!
2. We marked out Resistance areas - there's extra there however for readability of illustration I drew in a single.
3. We are able to see earlier Resistance turns into Assist as worth is now above the Resistance.
4. Our Purchase/Lengthy setup bar is discovered on the Assist. Its low grew to become decrease than its earlier bar's low.
   1. please take observe that this isn't the greatest setup as a result of its earlier bar can also be a Bull bar, the greatest setup is when the earlier bar is the reverse sort of the setup bar.
   2. an ideal setup ought to have its earlier bar representing itself as a Bear Bar, then the setup bar being a Bull bar and making ready for a Lengthy Commerce.
5. We measure the PIP size of the setup bar from its low to excessive. On this case we calculated 42 PIPS, this then turns into our TP (Take Revenue) Stage.
6. We enter manually at the shut of the setup bar / open of the subsequent. Or we set a pending order there.
7. Enter our TP Stage
8. SL could be round 1:1 of the TP degree, or 150-200 PIPS as an arbitrary quantity. Experiment with it.

Here is one other one, once more not the good setup.

The Setup - Counter Development Setups

Are you able to see others, a number of extra there proper, Buys and Sells, all TP's getting hit?
Let's take a deeper look:

Commerce 1, Promote/Brief:

1. We recognized the pattern, it is Up! so instantly we search for Buys.
2. As the worth stalls to build up extra orders, a counter pattern setup is discovered for a Promote.
3. When you've been following the different thread, you may see our 3-bar setup there on the left, slightly below the place it says "promote on open". With that in thoughts this could assist our momentary Brief commerce thought.
4. I calculate the PIP size and we're given 31.3 PIPS as our TP Stage. I search for confluences to see if a drop of 31.3 PIPS strains up with any Demand, or Assist. Or different technicals like Resistance, Base Assist Flips, and so forth.
5. Demand is discovered and contours up completely with our TP degree.
6. We enter Brief on the Bear bar's shut as the setup is discovered
7. TP is hit, and now we have the choice to Purchase off Demand and different technicals.

Commerce 2, Promote/Brief:

1. Resistance is discovered.
2. Our setup bar breaks resistances however closes decrease and makes a decrease low than the earlier bar.
3. Our setup bar conforms to having its excessive be increased than the earlier bar's excessive.
4. Not an ideal setup as earlier bar is of the identical sort.
5. we calculate its size to get PIP whole to behave as TP and search for confluences.
6. There's particular Demand zones decrease, and we're certainly coming off a serious push to the excessive all some time our setup bar completely engulfs the whole lot on the left. There's our sentiment to warrant a promote commerce on the cease hunt bar.
7. TP hit!

Though we may use different technicals, nonetheless you do not actually. Observe the setup guidelines. Apply. Set 'n' Overlook.

Now let's present two extra examples, this time they're going to resemble the good with the pattern setups and counter pattern setups.

With The Development - The Good Setups

Trying loads simpler now, proper?
Let's examine what now we have

Commerce 1, Promote:

1. Our setup bar created the reference level to position our trendline on, giving us a downward trendline, depicting worth is making a transfer decrease
2. Our setup bar engulfs its earlier bar
3. our setup bar is certainly of the reverse sort, and its excessive is increased than the earlier bar
4. We Promote instantly on the shut of the setup bar and calculate its size
5. 90.7 pips was calculated and acts as our TP Stage.
6. TP Hit!

Commerce 2, Purchase:

1. Our setup bar, as earlier than in our Promote alternative kinds a low to permit a reference level for our upward trendline
2. Our setup bar engulfs the earlier bar and varied others to its left
3. Our setup bar's low is decrease than the earlier bar, warranting a Purchase
4. we calculate the PIP size of our setup bar to behave as our TP
5. TP of 82.9 PIPS was calculated
6. TP Hit!

And lastly, the counter pattern setup

Counter Development Setup - The Good Setup

1. Development is up, naturally we'd search for Buys, however we additionally must search for accumulation areas the place worth will stall or reverse.
2. Arrange is discovered, its higher wick can also be coming off Resistance / Construction Excessive
3. Vary of 114.4 PIPS is calculated and can act as our TP
4. We enter Brief on the open of the new bar
5. TP Hit!

That is about it Girls & Gents. I will edit the submit if I discover any so as to add, or appropriate.