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The fourth and final component of the trading strategy is the TRIGGER. It is the last decision the trader make as to when to place a trade.

 

If the first three components of the trading strategy are in place the trader waits for this moment to pull the trigger. The very moment as price action breaks the opening price of the new candle in the direction of the trade the trader pulls the trigger.

The Trigger

The Final Component

The image shows trader when to pull the trigger

Explanation of image:

  • Image 1 shows a new candle opening immediately going up against the trade.

  • Image 2 shows price going higher against the trade but does not reach the stop loss.

  • Image 3 shows that price has turned. So as soon as the candle breaks the opening price and turns red this is the time to pull the TRIGGER to place the trade.

 

Placing trades before the opening price has been broken is not a good idea as many times price action does not actually breaks the opening price. In these cases the candle never goes in the direction of the trade and the trader ends up with a losing trade from the offset.

CB pull trigger
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