GREEN RAT REVERSAL setup on the AUDUSD at/near the weekly open.
Yesterday's daily flipped from RED to GREEN and closed green. Today's daily candle, tested yesterday's low and reversed triggering a green rat entry.
For those of you who think I post trades AFTER THE FACT, let's set the record straight, the entry rules have been posted many, many times:
GREEN RAT REVERSAL - LONG ENTRY CRITERIA: 1) RED CANDLE CLOSES 2) GREEN CANDLE CLOSES 3) PRICE TOUCHES HIGH OF PREVIOUS GREEN CANDLE - ENTER LONG. .
RED RAT REVERSAL - SHORT ENTRY CRITERIA: 1) GREEN CANDLE CLOSES 2) RED CANDLE CLOSES 3) PRICE TOUCHES LOW OF PREVIOUS RED CANDLE - ENTER SHORT.
You know the entry criteria IN ADVANCE so you can participate in the trade if you choose. I have changed the entry slightly because I am not online 24/7. Instead of the high/low entry trigger, I enter at/near the weekly open.
Remember, STOP LOSS is a function of RISK and POSITION SIZE:
MAXIMUM RISK = 2% * ACCOUNT BALANCE.
STOP LOSS = RISK / POSITION SIZE.
As a trader, you determine your comfortable risk and the position size you are comfortable trading. Then you calculate your stop loss.
"I am not forcing you to accept my concepts. I only request the traders to review the market from time to time keeping in mind my concepts and if found suitable use in the trades or just ignore. Thanks for your opinion."
PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
