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First Bounce Entry — News Catalyst Momentum Trade Setup

Mechanical rules — First Bounce Entry

  1. 01MUST have a 15-minute trade setup (Three Days, Three Sessions, etc.).
  2. 02Major Red News on the calendar prevents this trade from being taken normally (CPI, NFP, NF ADP, GDP).
  3. 03Typically takes 15-30 minutes for the First Bounce.
  4. 04The news must have an explosive effect in the direction of the original 15-minute setup.
  5. 05The ENTRY MUST be BELOW the HIGH if going LONG, or ABOVE the LOW if going SHORT.
  6. 06Entry is taken on the bounce toward the 20 EMA on the 1-minute chart.
  7. 07Stop Loss is placed at the most recent swing low (buying) / high (selling). MAX STOP LOSS is 20(-25) pips (15).
  8. 08This is a MOMENTUM trade acting on the news catalyst. It must continue moving strongly almost immediately. If it auctions against me, or DOES NOT follow through almost immediately, I WILL NOT WAIT TO BE STOPPED — I WILL CUT THE TRADE IMMEDIATELY.
  9. 09Profit Target: 50 pips (minimum). Depending on instrument and 15-minute setup: 100+.
XAUUSD First Bounce AFTER CPI

Exception — Three Day Parabolic Trend Trade Setup

An exception to this is a Three Day Parabolic Trend Trade Setup. The first minute allowed us an entry into this Three Day Trade Setup. This is an early entry. It's not a very common opportunity on High Impact News.