makuchaku

TBonds (ZB1!) 4H - Trapped traders on both sides of price

makuchaku Atualizado   
CBOT:ZB1!   Futuros de Obrigações do Tesouro
Trade setup
There are trapped traders on both sides of price above monthly highs & lows for TBonds ZB1! on 4H timeframe.
When price comes back to either of these zones - these trapped traders will want to exit - giving us an exit!


Risk management
1) Reduce 50% at 1R => Trade becomes risk free
2) Reduce further 25% at 2R AND move SL to break-even
3) Close trade at 3R
4) Winner = 1.75R


Strategy
Pickup a pair which is highly correlated to DXY (if trading DXY or an uncorrelated instrument, ignore the correlation)
AND
Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders
AND
Liquidity in form of equal highs/lows should not be present behind the stop loss
AND
Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation
Trade ativo:
Short trade active!
Trade ativo:
1R reached, reduced 50% volume. Trade is now risk free.
Price is currently teasing to hit 2R
Trade ativo:
2R hit - 25% more volume reduced.
Profit banked : 1R
Stop loss to breakeven.
Trade fechado: objetivo atingido:
Trade won, R=1.75
Aviso legal

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