Best Setup – Weekend review

EUR/USD 4HR retrace/reversals

Reviewing my trades again, I find that the best setups contain multiple trade factors.  In any trade the more setup factors that you can identify —- the higher your probability of a successful trade.  The following are the trade factors that I watch for….. listed in their level of importance to me.

1. Box Breakout or Reverse at Box perimeter.
2. Breach or reversal at major support or resistance.
3. The time is between 12 midnight and 7 AM.
4. The pair is moving against the trend and stalling out.
5. The box channel is very narrow.
6. Hits a 50 or 100 number.
7. The trendline is broken or reverses the currency pair.
8. Fibinaci retracement reversal at 50% or 62%.
9. A breakout or reversal candle is present.
10. Other related currency pairs are showing or have shown similar movement.
11. The bigger timeframe charts are confirming the setup.
12. The pair is Breaking away from 800 SMA.
13. A falling wedge pattern is playing out.

To summarize, MY BEST TRADE SETUP is a 50% retracement box reversal at MAJOR SUPPORT or RESISTANCE.  Waiting to enter when the trade setup hits the major support/resistance and resumes the trend is the MOST IMPORTANT thing.

We see these trade setups coming in advance.  We have plan A to trade 50% retracement reversal boxes.  If the box breaks through we have Plan B to close trade A and to possibly trade the breakout countertrend.