TLRY
Hey, traders!
Today I decided to share with you very useful, in my opinion, information.
I decided to tell you about a reliable model of trading on a rebound from the level.
Such a model has VERY bigg pluses:
1. The model is based on the presence of a limit order, in which the price stops, which guarantees reliable protection of SL
2. You can use a very small SL order sizes of 1-3 cents - and this is just great if you are trading with a small deposit or if you are trading with margin.
3. Often, in my personal experience, the RR is much larger than 3\1. Personally, in the worst case, I got 10\1, but very often there are 20 or even 30\1.
And as you understand, this is due to two factors: a very short SL hidden under a limit order, and quite a large potential for a move, provided that you, as a trader, have correctly determined the direction of the move.
4. Suitable for beginners.
I will highlight, perhaps, only two drawbacks:
1. It is rare, this model has to wait and be at the computer. In other words, the trader must be tied to the monitor.
2. the trader has to make a decision quickly enough.
When such a model is used:
1. After the price sawed the level, but then one of the bars opened and closed in the breakout area.
Mechanics:
1. After fixing the price in the breakout area, we wait for the level retest.
On the example of TLRY: the price has been sawing the level 10.60 for the last 3 days and fixed in the breakout area. But it is not enough.
If today the day bar opens and closes above the level, we will consider that the long player defeated the short player.
2. We're definitely waiting for the 10.60 level retest.
3. On the M5 or M15 ( junior timeframe), during the retest, we wait for one bar to confirm the daily level, then the second bar, cent-to-cent, will confirm the level again, which will indicate the existence of a limit order, for which we hide our SL
4. The point of entry is at the next bar.
Once again, this situation is rare, but if you see such a model, profit is simply guaranteed!
If you want to learn to understand the market and make successful trades, feel free and contact me.
Trade wisely!