ORDER RULES FOLLOWING 8 STEP

After we have memorized the above two core martial arts, we will move on to the rules of the command:

1. Keep track of the currency pair you are trading. Pay attention to it only when there is a clear trend (30 EMA is steep up / down clearly)

2. We continue to wait for the trend to take a break and move to a sideways phase. (Unsurprisingly 1 or 2)

3. Wait for the price to break out of the sideways and continue the trend. Turn the volume up to look at the breakout candle to avoid false breakouts. (Implement 1st or 2nd generation)

4. Tracking price after the breakout whether pullback prevents the breakout or not. Experience is that sometimes this situation happens very quickly, requiring us to focus. Once the price breaks out, you have to watch it closely. Don't lose the chance to pullback.

In case of passing through a good price, switch to a smaller time frame to find the optimal entry point.

5. If the price pulls back to the breakout resistance, the order is just right. Waiting for confirmation or placing pending orders depends on your style.

6. Place the stop loss below the breakout. Pay attention not to be stopped by the stop loss scan.

7. Immediately move the stop loss back to the entry as soon as the price moves a segment equal to the stop loss interval.

8. Move the stop loss in turn when the price creates short-term highs/lows. Using the trailing stop tool is fine.

One extremely important note: Do not think that trend trading is healthy, just catch the trend and place an order and leave your face to follow the trend. The result is usually not that you follow the trend but you BUY at the top and SELL at the bottom.

The problem for traders here is the lack of focus on the trading process. You need to closely monitor the process before placing an order until the order is finished.

The most critical moment in this system is at the beginning of the breakout. You must stay glued to the screen until it pulls back successfully.

The rules for entering orders are done.

FOR EXAMPLE

Opening with frame H4 on EURUSD pair:


Price is in an uptrend (30 EMA is sloping up). Then stops increase and sideways create a nice two-top pattern. Are we looking for points to SHORT SELL?

Do not look back on the second position, wait for it to break out the top of the pattern, then pullback and enter a BUY order following the trend.

In fact, the price has broken out of the pattern very strongly and shows no signs of a pullback. So we can't follow the lesson. Now, it will be flexible to move to another way: find the entry point at the smaller frame to avoid the problem of racing, FOMO, ... We will switch to the M30 frame:


Obviously, in the H4 frame, the price did not pullback, but in the M30 frame, the price already pulled back. Once the price breaks out, you have to be glued to the monitor continuously, it pulls back and runs very fast. If we do not switch to the M30 then wait until old it will not pull back because it actually pulls back!

In this case, we place a BUY order for the day when the price touches support.

Stoploss places about 20-25 pips below the red support line. This setup is too beautiful, right?

▶️Telegram : https://t.me/cryptostationchannel
📚Edu Station : https://t.me/educryptostation
⛑Support Form : https://forms.gle/q6J62HiZmoW8pKwK8