Free course · Lesson 13 of 14

Optional extra: the continuation trade

Not the main strategy. Reversals come first; this is for the days the break is real.

Optional extra, not the main strategy. The reversal (sweep, CHoCH, pullback) comes first. Master that before using this.

Step by step

1. First, the important bit: this is an optional extra, not the focus. The main strategy is the reversal. Master that first, and only use this on clear breakout days.
2. The Asia high breaks, and candle after candle closes above it. No quick rejection, no CHoCH back down. This is a continuation, not a sweep.
3. Don’t sell it, and don’t chase it either. Buying the top of a run is how you get caught in the pullback. The cleanest version: a reversal was tried (sweep and CHoCH) and then failed, with price breaking straight back through. Those trapped sellers’ stops push it further.
4. Price comes back down to the old Asia high. The level that was the ceiling should now be the floor. That’s the retest.
5. A candle holds the level and turns back up. That’s the entry: buy with the break.
6. Stop 10 pips below, under the retest. If price falls back into the box, the break has failed and we’re out small.
7. Target the next liquidity above (yesterday’s high, a 4H high), at least 3R away. No retest, no trade: we never chase.

Remember: Optional extra, never the focus: the reversal is the main strategy. If you do trade a continuation, the break must close beyond and hold, then wait for the retest, buy (or sell) the turn, 10 pip stop, 3R. No retest, no trade.