[easttech]

Trevman,

I can give you the basics but I don't want to be too specific. As I mentioned I learned it from a trader who asked we not share anything we learned from him. The technique is called a 3 bar reversal using the 5 minute chart. As price approaches your target (or a strong resistance/support line), you watch the bar closes on a 5 min chart. So for example if you were in a long trade, as each bar starts closing lower, you start counting the bars backwards for 3 qualified bars. If price reaches the lower point of the lowest of those 3 bars, you get out of the trade. You also do not count inside bars as a bar. If you don’t know what an inside bar is, just look on any Forex training site and you will see what it is. It’s hard to explain in a forum thread without a picture.

So that’s pretty much it. Using this technique, it shows when the trade momentum has lost it’s strength and gives you a chance to get out before you lose all your profits or you take a bigger loss.

Andrew