#1 - Trade Review: How to identify and trade A+ setups?

In this brief post, we will review two A+ setups; one that turned into a successful trade, and the other that failed.


Case A: An A+ that hits the target

EURJPY 4H Chart - Stalking the "Long" trade...


Market conditions early morning pre-London open:

  • Price being supported at the lower-bound of the larger upward-channel;

  • Price being supported by the 50SMA;

  • Price being supported by the WPVT (Weekly Pivot) and lower-bound of the small channel.

Confirmation inputs required to pull the trigger:

  1. A strong close above resistance box at 133.15/20.

  2. A break above the upper-bound of the bullish flag channel.

EURJPY 1H Chart: Entering long after 2 conditions are met:

Target was met 3 hours after entry. We scaled the trade out in two parts as we always do in a winning trade. We secured on average a net 50 pips profit:


Case B: An A+ setup that fails to hit the target

NAS100 - Nasdaq Index 1H Chart - Waiting for a breakout push to finish off the pattern...


Market conditions before US market open:

  • Price trading above DPVT (Daily Pivot);

  • Price broke above 50SMA;

  • Pattern suggesting triangle wave 4 has ended and a 100 pts thrust was around the corner;

  • Overall trend - bullish;

  • Only concern: Friday - no catalysts on the calendar


Confirmation inputs required to pull the trigger:

  1. Pullback (p/b) retest of the DPVT and MAs at 700-705;

  2. If p/b holds, enter long.

Price pulled back to 13,690 and found strong buying instantly. We entered using the 15min timeframe chart at 13,705, keeping risk at 13,660 and target 13,820. As you can see, trade was going quite well and it was half way to the target.


but then, it puked and failed (we had to get out early at 13,720 securing a small gain and avoiding a profitable trade turn red on a Friday evening:


*Both cases are from May 27th and May 28th trading sessions.

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Key takeaways:

  • Know your "playbook" and try to stalk A+ setups;

  • Execute if conditions are met and take a chance on your A+ setup;

  • It is okay to get stopped out on a prepared trade;

  • A+ setups have a minimum R:R of 1:3.

  • Trend trades are always easier than fighting the main direction.

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Until the next time, "Be a Mindful Trader!"

IWT Team!

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