Here is an idea on EURCAD where I used different strategies to place 3 different trades with 3 different SLs and TPs. Here are the details:
Trade 1: Looking at engulfing candle on H4 timeframe suggests the coming of the bears. So fib that single engulfing candle and wait at the 50% to let the price come and pick you up. SL goes to the highest point i.e. 65 pips. Now comes the question of profit. Best way to approach this scenario is twin trade it with 1:1 risk:reward and then trail the SL; if risking 1% per trade then this twin will cost you 2% in total.
Trade 2: This trade is an absolute scalp with 5 pips SL and 5 pips TP if it respects the pitchfork. Despite it being within the Loss zone of trade 1, it is a small trap trade...
1:1 risk:reward.... risking 1% of your account on standard lot size can fetch a cheeky $6-7
Trade 3: Again measuring the pitchfork outer lines, this trade is placed with the imagination that if the pitchfork was cloned and placed directly below itself then the price may exhaust at the point of the trade's entry and atleast pullback by 27 pips. Again 1:1 humble risk:reward ratio. If you feel that 27 pips TP is too humble then feel free to twin the bad boy. In this scenario, I have chosen not to, because of my risk management.
.............................................
All 3 trades, if put together, would risk 4% of your account in total. However, not all 3 will be active at one given time (All are limit orders) so no problem of leverage.
One last thing. Situations change just like anything so if price starts telling a different story then all you can do is delete your limit orders....No harm done.What is your say on this scenario?
This idea is definitely worth following to see the end result.
Happy Trading!
Trade 1: Looking at engulfing candle on H4 timeframe suggests the coming of the bears. So fib that single engulfing candle and wait at the 50% to let the price come and pick you up. SL goes to the highest point i.e. 65 pips. Now comes the question of profit. Best way to approach this scenario is twin trade it with 1:1 risk:reward and then trail the SL; if risking 1% per trade then this twin will cost you 2% in total.
Trade 2: This trade is an absolute scalp with 5 pips SL and 5 pips TP if it respects the pitchfork. Despite it being within the Loss zone of trade 1, it is a small trap trade...
1:1 risk:reward.... risking 1% of your account on standard lot size can fetch a cheeky $6-7
Trade 3: Again measuring the pitchfork outer lines, this trade is placed with the imagination that if the pitchfork was cloned and placed directly below itself then the price may exhaust at the point of the trade's entry and atleast pullback by 27 pips. Again 1:1 humble risk:reward ratio. If you feel that 27 pips TP is too humble then feel free to twin the bad boy. In this scenario, I have chosen not to, because of my risk management.
.............................................
All 3 trades, if put together, would risk 4% of your account in total. However, not all 3 will be active at one given time (All are limit orders) so no problem of leverage.
One last thing. Situations change just like anything so if price starts telling a different story then all you can do is delete your limit orders....No harm done.What is your say on this scenario?
This idea is definitely worth following to see the end result.
Happy Trading!
