This is an advanced technique, but do spend some time to understand this concept, how it works and it will pay off in the long run. The risk to reward is really favourable for you. You're entering the breakout before the breakout. If you look at it from the grand scheme of things, you're actually buying at the lows of the buildup over here. This is what I call a false break setup.ДЄnd you can enter on the next candleвЂ™s open, with stop loss, 1 ATR below the lows. We have this price rejection where the price heads down lower into support but closes bullishly back into the range. LetвЂ™s say your buy stop order is the above the previous highs (at the blue dotted line) and your stop loss is below the buildup (at the red dotted line). This technique allows you to reduce the size of your losses. If you're going to capture a longer-term trend, then you can use 4 or 5 ATR as your trailing stop loss.Д«ut bear in mind that with a wide trailing stop loss, your position size on a trade must be reduced accordingly if you still want to maintain your 1% risk on this trade. There are a couple of things that you can consider modifying. No, that's not how it works.ДЄnd I don't want your trading strategy to just be replicated exactly according to what I teach. It doesn't mean that you have to follow the exact rules that I've shared with you. This BWAB trading strategy is not cast in stone. So I made sure that this trading strategy takes time to form, for new traders to catch it as well.ДЄnd then use 3 ATR as your trailing stop loss to ride the trend. If it forms too quickly, beginning beginners won't be able to catch it in time. Meaning it takes time for the pattern to form. If not you, you won't have the conviction to trade it. In fact, there must be a logic behind all strategies. Sound logic behind why this trading strategy works I made sure that this pattern is relatively easy to spot so that new traders are able to catch this pattern. The BWAB trading strategyД«efore I explain to you what this is about, I want to share with you the criteria that went through my mind before I decided to share the strategy with you.Д«ecause new traders are not familiar with the price action analysis, chart patterns and stuff like that. This trading strategy is what I call вЂ“ the BWAB trading strategy. It can be applied to the stock or futures markets as well. This trading strategy doesn't only work for forex. In today's training, you'll discover the best forex trading strategy for beginners.

Atr trailing stop strategy