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Double Trend Trap

Please Note :

This is a "Made Simple" Report. Though this is a very powerful strategy, we are not able to explain every detail and exception to the strategy in one, short report.

This is why we offer continued education and tools and encourage you to take advantage of that.

A Strategy... thats works!

In this Strategy Report, we are going to teach you a simple and effective strategy that will work in the Forex Market.

It works because it uses fundamental principles in trading that have been proven over time. That's why we use this in our Trading Room, our Signals and our own personal accounts.

our signals and our own personal account

"Below are the six steps that teach you how to trade this tremendous strategy"

Step One : Define the Trend

Defining the Trend” seems like a simple and obvious step, but it is AMAZING how many people get caught up in the moment of whatever chart they are looking at and don't even think to check the other Time Frames to see if longer term momentum is on their side. So ALWAYS know what direction the Trend is on the 4HR and Daily Chart... Always!
Remember, we can't “Trap” the trend if we don't know what the trend is.
Defining the trend does not have to be a complicated set of rules. A simple look at the charts and determining whether Price is onsistently going UP, consistently going DOWN, or moving in an overall sideways direction will tell you what the trend is.
If you are someone who really likes rule-based thinking, you can do this:
Put a 200, 100, and 50 Simple Moving Average on your chart. If the
Price is above all 3 of those on the Daily and 4HR, it is an uptrend. If it is below all 3, it is downtrend, and if price is back and forth between them and crossing in and out, it is a sideways market.

Not surprisingly, we are only looking for trades in the direction of the Defined Trend.

If the trend is UP (Bullish) we are looking for Buys.
If the trend is DOWN (Bearish) we are looking for Sells.

Again, it seems simple, but just sticking to the #1 Rule of defining the Trend and sticking to that direction gives you a big Edge... and ‘‘we still have five more steps to go!’’

Step Two : Look for the Opportunity

a**Note: Step 2 may come off a bit confusing at first, but when you understand the whole puzzle, it makes a lot of sense, so just bare with us and keep on reading :)
A trading opportunity occurs when the Market starts moving in the opposite direction of our defined trend. If the defined trend is Up (or Bullish), an opportunity would be when we see the market begin to move down.
In short, the opportunity is the area that's circled in red:

Why is that an opportunity?

Because that means we have a chance to get a Good Price (buying at a lower price) in the direction of the trend.
In other words, if we just buy in an uptrend, we may get in at too high of a price so there is not enough “room” for the market to keep pushing the price higher (which means it would move down and we would lose money); however, if we wait for the market to move down, we KNOW there is room for it go higher because it has just recently been higher. Simple, yes, but very powerful.
Now, just because it is moving down in an uptrend, does NOT mean we are buying; it's only the 2nd step in the process telling us we MIGHT have a trade possibility soon.
To summarize, the opportunity is just the simple step of recognizing that the Market could be giving us a better price to trade in the direction of the Trend Soon.
Remember, step 2 is still a long way from the trade, it's only alerting us to keep our eyes open on a given pair.

Step Three : Look for Filters

watch-the-filter Once we spot an opportunity in the Market, the next thing we need to do is qualify that opportunity.

In other words, we might get a whole bunch of “Potential Trades” but only a small percentage of those will be high quality trades.

The Filtering Process helps us eliminate many of the bad trades that would just get us into trouble.

No matter how many filters you have, you will still lose trades, but having good filters can mean the difference between a Net Winning System or a Net Loser.

Some other filters to consider:

1. Fibonacci Levels
Since we are using trends in this strategy, there should always be a swing that you can draw a Fib on. This will help you determine whether or not there is a critical level you should be concerned about. In other words, you don't want to take a Buy Position when there is a Fib level acting as resistance just a few pips above your entry price. That's an easy way to put the probability on the losing side.

2. Support and Resistance Zones
Fibs are already support and resistance levels, but another thing to watch out for are ZONES of support or resistance. These occur when there is a certain level or area of price in the Market that has rejected or supported price tons of times in the past. Many times this creates a cluster or a zone and you don't want to trade into these areas.

3. News
News is another filter to consider. Even if a trade opportunity is looking great, News can easily throw off your opportunity. Not all news has to be avoided, but be careful of major events.
Remember that filters are something that comes with experience more than just reading an E-Book. It will take time in the market (or in our trading room) to really understand how to navigate the market and avoid bad trades. Using filters can minimize your losses, especially with some experience in the Market.

You won't avoid every losing trade, but if you can avoid enough of them, you'll be a profitable trader.

Step Four : Wait for the Break

Since we know that the “Opportunity” in this strategy comes when price is moving in the opposite direction of our defined trend, you may have guessed that the Trade comes when price BREAKS BACK into the direction of our trend.

Defining the Break

All you need to do is draw a rough trend-line on the bearish move circled in the image above (use a lower time frame like 30 Minute or 1 Hour to draw your line). When price breaks that “mini-trend” and starts going back in the direction of the Bigger Trend, we will have more than just an opportunity —we'll have a trade!

So Step 4 is this
Knowing that the opportunity is a quality one (no major filters), having your trend line in place (30 Minute or 1 Hour Chart) and WAITING for the BREAK BACK into the direction of our defined trend (candle close on whatever time frame you have drawn the Trend Line on).
Remember, a little trend line and break doesn't mean much if you don't know what direction the market is likely to go on the bigger time frames. Using a break on a smaller time frame that is demonstrates continuation on the Larger time frame is an easy way to cheat :)

Step Five : strike entry

The entry is called the “Strike.
We call it that because it is typically a quick and powerful move when the Market breaks back into the direction of the longer trend. As a trader, there is nothing better than getting on board just as the Market is ready to make a Strong move in your favor which is why we love this strategy so much.
That's what makes momentum and using the S.M.I. so important.

For a Buy Strike Entry, Stop Loss will be BELOW recent lows and Take Profit will be a few pips BELOW recent Highs. The Opposite of what's shown below is true for a Sell Strike:The strike is a powerful

strategy. Most traders don't have an understanding of what the Market is trying to do and how to implement a strategy to take advantage of it.
The “ Strike Entry ” is designed to take advantage of the structure that the Market naturally and constantly works in and is a very profitable strategy when paired with patience, discipline and
experience.

Step Six : Boomerang Entry

The second entry of the Double Trend Trap Strategy is the “Boomerang Entry

The Boomerang Entry is an additional entry that we take if Price “Hooks Back” toward the break point or the old trend line. Often, price will do this to confirm the level we are trading and then continue in the original direction of the trade.

Only take the boomerang trade if your strike trade moved with momentum in the direction of the break before hooking back—if not, the “boomerang” could, in fact, be a reversal against you and you do not want to add a position in that case.

Here is how a Boomerang Entry Looks:

In the example above, you will see that we had a strong strike entry and price moved up through the trend line, but it hooked back to test the “break level” before continuing.

This happens constantly on trend continuation breaks, so we use it to our advantage by utilizing the Boomerang Entry in many of our trades.

After the boomerang entry, the only thing left to do is manage your trade.

Strike Momentum Indicator

The Strike Momentum indicator is a tool we built specifically for this strategy.

It works by painting an arrow on the chart when there is likely enough momentum in the market to push your trade to the target.

The SMI is an awesome tool to combine with the DTT strategy and it is only a few bucks on our website. You can Get it Here https://winnersedge.leadpages.net/custom-indicator/
Or to learn more about the SMI, read this article http://www.winnersedgetrading.com/the-key-to-confirmation/

We hope you have enjoyed this free report!

If you have any questions or want to learn more about us, we are always available at:

[email protected], www.winnersedgetrading.com, https://twitter.com/WinnersEdgeTrad

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