GBPJPY 4H 15M RABBIT TRAIL CHANNEL TRADING STRATEGY LONG TRADE

Rule #1: Draw a channel on a 1 or 4 hour chart.
Rule #2 Identify If there is a Breakout on 1 hour or 4 hour chart.
Rule #3 Wait for a Pull Back on a 15 minute Chart.
Rule #4 After Pull Back on 15m, Make Entry.
Rule #5 Find a Stop Loss Placement.
Rule #6 Ride The Rabbit Trail to 50 pips with a TP Order!

Rule #1: Draw a channel on a 1 hour or 4 hour chart.
The first thing you need to do to get this strategy started off is you need to find a channel on a
four hour or one hour chart. Remember there must be two resistance and support points to
validate a channel.
This strategy can use many currency pairs. Make sure you search through all of them. Many say
that they “only trade EURUSD.” There is no reason for that..
Get in the charts and see for yourself! There are channels everywhere. This strategy will work
with any currency pair. The opportunities are endless..
Not too bad. So basically all you are doing here is drawing parallel lines on the tops and
bottoms of the price movement. This example hit a quite a few resistance and support levels
which means that when it breaks this channel it has the potential to make a huge move!

Rule #2 Identify If there is a Breakout on a 1 hour
chart.
The way you find the trade is to find a breakout of the channel that you drew on your chart..
In a perfect world the support and resistance levels will hold on forever..
But the world isn’t perfect..
So that’s why we have what is called a breakout.
This breakout happened on the top of the channel. So that means you will BUY.
If the breakout happens on the bottom of the channel then you will SELL.
Great! We have breakout candle let’s get in the trade and follow the rabbit trail to pip glory!

Rule #3 Wait for a Pull Back on a 15 minute Chart.
Why wait? Because the market is money grabbing machine, and they want your hard earned
cash!
You wait because sometimes the market does a “head fake” and turns against you.
So if you would have got in this trade right when it broke out of the channel you would soon
have got stopped out.
That is why it is so important to Wait for it to pull back.
This is where many people struggle. They see that it broke out so they want to click BUY or
SELL right now!!!
Think about the sayings you have heard since you were a child, “Patience is a Virtue,” Or “Good
things in life take Time”
Just be patient and wait…
This trade would not have burned you, but countless other trades would have!
Think about the pull back as the candle that closes towards the channel. So if the pull back is
above the channel you are looking for a bearish (red) candle. If the pull back is below the
channel you are looking for a bullish (green) candle.
*We only need one of these pull back candles on a 15 minute chart. Once this happens
move on to the next step.

Rule #4 After Pull Back, Make Entry.
We are getting so close to getting on our rabbit trail to make some serious pips!
Our lines are drawn, we identified the breakout, and waited for the pull back. It is now time to
make our trade.
The criteria to make an entry after a pull back on a 15 minute chart to enter a trade is that there
must be two 15-minute candles that support our trade.
If it is a BUY trade we want to see TWO bullish (up) candles after the pull back.
If it is a SELL trade we want to see TWO bearish (down) candles after the pull back.
Enter after the two bullish 15 minute candlesticks close.
So again, we WAIT for a pull back candle to close and then we need two BULLISH (green)
candles to close to many an entry.

Rule #5 Stop Loss Placement
This is probably one of the most important rules of the strategy.
You always need to place a stop loss somewhere for a reason. If you are throwing in stop
losses 5 to 10 pips from your entry order just because someone you read that somewhere, then
you are without a doubt treading some dangerous waters.
In a Buy The stop loss will be placed in the channel below the last support point.
In a SELL The stop loss will be placed in the channel above the last resistance point.
That way if it does come back in the Channel it will hit the support level and end up going back
up in a bullish movement.

Rule #6 Ride The Rabbit Trail to 50 pips!
The last thing you need to do is know when to exit the trade.
This strategy goes for a 50 pip target.
So when you make your entry, you calculate 50 pips take profit mark and place it.
The rabbit trail may be 2 hours, or could take as long as two days. You have your target so
really you have nothing else to do but sit back and watch your trade make you some money!
Stay in the trade and remember your rules. You are going for a 50 pip breakout trade!