Introduction
Have you ever received good news from someone and found yourself asking for confirmation to ensure if it is accurate?
The same applies to trading – confirmation is crucial.
Today, I'm introducing a powerful trading strategy that provides double confirmation without using any indicators.
This full-price action-based strategy can transform your trading style.
The Simple and Powerful Strategy
Let's dive into this straightforward yet highly effective trading strategy. Using a 5-minute timeframe, mark the high and low of the day at 10:15 AM. Wait for the second breakout – not the initial one – to enter a trade. For instance, if the market initially breaks the high but retests and breaks it again, this will be the second breakout.
On the second breakout, go long if the price breaks the high or short if it breaks the low.
Entry and Stop Loss Rules
For a long trade, enter when the second breakout breaks the high, and place the stop loss at the low of the previous candle.
For a short trade, enter when the second breakout breaks the low, and set the stop loss at the high of the previous candle.
Profit Booking Rule
Take profits at the first resistance level or trail your stop loss to protect your gains.
Backtest Results
Let's review the backtest results for the period from 15th May 2023 to 13th June 2023. Out of 22 trading days, 15 provided trade opportunities, resulting in 12 profitable trades and 3 small losses. The winning ratio was 55%, the losing ratio 14%, and the trade ratio was 32%. The net profit after deducting losses was 269 points, translating to Rs. 13,450 with Nifty's lot size at 50.
Conclusion
This double confirmation price action trading strategy offers a powerful way to trade intraday and scalping opportunities with confidence. By following the rules and ensuring double confirmation, you're making informed trades based on price action signals. Remember, this strategy requires marking the high and low at 10:15 AM and entering on the second breakout.
Keep in mind that trading carries risks, and past performance doesn't guarantee future results. Always perform due diligence and practice risk management when implementing any trading strategy.
If you found this strategy helpful, please leave a comment and share this video to help others learn and earn from trading.
Disclaimer
This blog post is for informational purposes only and should not be considered as financial or investment advice. Trading in financial markets involves risk, and past performance is not indicative of future results. Always conduct your research and seek professional advice before making any trading decisions. The author and publisher are not responsible for any losses incurred from the use of the information provided in this post.
