Box 20.1

Brief situation description:

The market has formed on daily charts a specific formation, which 1 call a comb. (This is a sort of short-term trend seen on frame charts any time including intraday, daily, and weekly.)

Currency recommended for a trade:

USD/CHF, USD/JPY, EUR/USD, EUR/JPY and other Euro crosses.

Trade characteristics:

Basic (conservative).

Trade (entry point) suggestions:

Take a position in the direction of the move on the break of the trendiine limiting a comb from one side: A. Buy on the break of the descending line, OR B. Sell on the break of the ascending line.

Entry time:

Any time.

Entry execution:

Entry-stop order.

Stop-loss placed: (Cannot be chosen in accordance with a trader's individual situation and preferences. Money management principles must apply.)

On the opposite side of the current day range. (Above the previous day high or below the previous day low.)

Reverse if stops triggered:

Recommended. (Automatic and simultaneous with stops.)

Target (custom choice):

Average daily range (PI)

End of the day (P2)

Other

Potential profit estimation:

N/A

Profit probability evaluation:

Average to High

Risks evaluation:

Average to Low

P/L ratio:

Positive

Potential advantages in favor of the open position:

The position was open in the direction of the medium-term trend.

The position was open in the direction of the main move of the previous day.

The most probable complications, disadvantages, and risk warnings, and advice to avoid them:

RW#1: The position was open against the direction of the medium-term trend. RW#2: The position was open against the main move of the previous day.

A#l: Move your stops closer and place them above (below) the previous local extreme formed the same day. A#2: Same as above.

Box 20.2

Brief situation description:

The market has formed on intraday charts a comb formation.

Currency recommended for a trade:

USD/CHF, USD/JPY and some EUR crosses.

Trade characteristics:

Optional (risky).

Trade (entry point) suggestions:

Enter the market on the break of the line.

Entry time:

Any time.

Entry execution:

Entry-stop order.

Stop loss placed:

The opposite side of the day range

The nearest technical level

Other

Reverse if stops triggered:

Recommended.

Target (depends on the time frame):

End of the day (PI)

Average daily range (P2)

Other

Potential profit estimation:

N/A

Profit probability

Average

Risks evaluation:

Average

P/L ratio:

Neutral

Potential advantages in favor of the open position:

A. The position was open in the direction of the main move of the day. B. The break of the line occurred simultaneously with forming of the new low or new high of the day.

Possible complications, disadvantages, and risk warnings, and solutions to avoid them:

N/A

Additional notices, recommendations, and trading tips:

To trade combs on an intraday basis is a bit problematic. It is better to trade having some other technical reasons to enter a position, because trading in limited time and space is always difficult for a trader. However, sometimes it works extremely well if you take profit at the right time.

Box 20.3

Brief situation description:

A flat surface is formed on daily charts.

Currency recommended for a trade:

All majors and crosses.

Trade characteristics:

Optional.

Trade (entry point) suggestions:

Enter the market on the break of the surface.

Entry time:

Any time.

Entry execution:

Entry-stop order.

Stop loss placed:

The opposite side of the day range Other technical level

Reverse if stops triggered:

Possible.

Target:

End of the day (PI) Average daily range (P2) Other

Potential profit estimation:

N/A

Profit probability evaluation:

Average

Average

P/L ratio:

Neutral

Potential advantages in favor of the open position:

N/A

Possible complications, disadvantages, and risk warnings, and solutions to avoid them:

N/A

Additional notices, recommendations, and trading tips:

Better when a position is open in the direction of the current medium-term trend. Also, some other reasons should support the idea of such a trade. However, if you trade on an intraday basis, the chance to make profit is quite acceptable. Can also be used for adding a position to another, profitable one.

Box 20.4

Brief situation description:

A flat surface is formed on intraday charts.

Currency recommended for a trade:

All majors and crosses.

Trade characteristics:

Basic.

Trade (entry point) suggestions:

Enter the market on the break of the formation.

Entry time:

Any time.

Entry execution:

Entry-stop order.

Stop loss placed:

The opposite side of the day range. Other technical level.

Reverse if stops triggered:

Recommended.

Target:

End of the day (PI) Average daily range (P2) Other

Potential profit estimation:

N/A

Profit probability evaluation:

Average

Average

P/L ratio:

Neutral

Potential advantages in favor of the open position:

N/A

Possible complications, disadvantages, and risk warnings, and solutions to avoid them:

N/A

Additional notices, recommendations, and trading tips:

Better when a position is open in the direction of the current move. Usually supports the view that the move in this direction will happen during the day. If you trade on an intraday basis, the chance to make profit is quite acceptable. Can also be used for adding a position to another, profitable one.

Box 20.5

Brief situation description:

The market approaches the major trendline drawn through two (or more) absolutely extreme points. (There should be the whole chart on one side from such a line and a totally free space on the other side.) The trade can be executed only on the approach to a supportive line of the uptrend or at the resisting line of a downtrend.

Currency recommended for a trade:

All majors and crosses.

Trade characteristics:

Basic.

Trade (entry point) suggestions:

Enter the market 5 to 1 0 pips before the line in the direction, opposite to the direction of the move.

Entry time:

Any time.

Entry execution:

Limit or market order.

Stop loss placed:

Behind the line.

Reverse if stops triggered:

Recommended. (Trailing stop can also be used.)

Target:

End of the day (PI)

Average daily range (P2)

Other technical point or reason

Potential profit estimation:

N/A

Profit probability evaluation:

Above average

Below average

P/L ratio:

Positive

Potential advantages in favor of the open position:

N/A

Possible complications, disadvantages, and risk warnings, and solutions to avoid them:

N/A

Additional notices, recommendations, and trading tips:

The bigger the number of points lying on such a line, the less the probability to commit a profitable trade. 1 prefer to trade this template on the third or (at the maximum) fourth approach to the line. In the case of the fourth approach, 1 usually take profit early, using some market's hesitation ahead of the line.

Box 20.6

Brief situation description:

The market breaks the major trendline drawn through three or more absolutely extreme points. (There should be the whole chart on one side from such a line and a totally free space on the other side.) The trade can be executed only on the approach to a supportive line of the uptrend or at the resisting line of a downtrend.

Currency recommended for a trade:

All majors and crosses.

Trade characteristics:

Basic.

Trade (entry point) suggestions:

Enter the market 5 to 1 0 pips at the break of the line in the direction of the move.

Entry time:

Any time.

Entry execution:

Entry-stop order.

Stop loss placed:

The opposite side of the day range Other technical level

Reverse if stops triggered:

Recommended. (Trailing stops can be used also.)

Target:

End of the day (PI) Average daily range (P2) Other technical point

Potential profit estimation:

N/A

Profit probability evaluation:

Above average

Below average

P/L ratio:

Positive

Potential advantages in favor of the open position:

N/A

Possible complications, disadvantages, and risk warnings, and solutions to avoid them:

N/A

Additional notices, recommendations, and trading tips:

The bigger the number of points lying on such a line, the less the probability to commit a profitable trade. 1 prefer to trade this template on the fourth or larger approach to the line. The position can also be turned into a longer-term positional trade, because the break of such a line indicates the possibility of a trend change.