Allowable time frames:

What times frames will you trade this setup on? (Can be traded on all entry time frames—1m, 2m, 3m, 5m, 15m, 1H & 4H.)

Risk:

What risk level will you execute these trades at?

Management style:

How will you manage this setup—2R TP, % Trail, Structure Trail or Hybrid?

Criteria:

1. Clearly defined reversal structure on the LTF

2. Price rejects off the structure as it approaches for the third touch, showing any of the reversal candlesticks formations (engulfing & high/low test patterns)

3. Stop entry is just above/below entry candle

4. Stop loss is placed just beyond the third rejection

Trade examples

Retrace Setup Library: click here