Trade of the week: 50% scissors trade
Date mark up: October 9, 2023
Make sure you are able to identify the sky and 50% white line because they are both major areas (place an alert) the market can touch.
The market can sell to the next zone where the other 50% line and earth are. Notice that there is a small consolidation in this area and a gap happening. The market has to respect the gap and fill in the area by retracing back down. It’s important we keep an eye on all these major areas in order to place a entry and TP.
Scissors Trade
Trade setup: Identify a an engulfing candle stick ( Bullish engulfing or Bearish engulfing) on the 4Hr. Then grab your fib and place it from the top of the candle to the bottom of the candle. Next grab a white dotted ray and place it at the 50%. Make sure to delete the fib after identifying the 50% mark. Now we are waiting for a break above or below at the 50% followed by a retest at the same 50%.
Execute: Break and retest
Standard Rules:
*Position Type: Limit orders and Market Execution orders ONLY
* only risk 5% of your account
* SET AN ALRAM ON TREND LINE AND EARTH
TP 1: 100pips
TP 2: 200pips
TP 3: 300pips
Make sure you are able to identify the sky and 50% white line because they are both major areas (place an alert) the market can touch.
The market can sell to the next zone where the other 50% line and earth are. Notice that there is a small consolidation in this area and a gap happening. The market has to respect the gap and fill in the area by retracing back down. It’s important we keep an eye on all these major areas in order to place a entry and TP.
Scissors Trade
Trade setup: Identify a an engulfing candle stick ( Bullish engulfing or Bearish engulfing) on the 4Hr. Then grab your fib and place it from the top of the candle to the bottom of the candle. Next grab a white dotted ray and place it at the 50%. Make sure to delete the fib after identifying the 50% mark. Now we are waiting for a break above or below at the 50% followed by a retest at the same 50%.
Execute: Break and retest
Standard Rules:
*Position Type: Limit orders and Market Execution orders ONLY
* only risk 5% of your account
* SET AN ALRAM ON TREND LINE AND EARTH
TP 1: 100pips
TP 2: 200pips
TP 3: 300pips
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