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Force Strike Bar Formation Continuation Trading Strategy

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Karthikeyan Palani
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936 views21 pages

Force Strike Bar Formation Continuation Trading Strategy

trading lesson

Uploaded by

Karthikeyan Palani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Price Action False Break – Bull and Bear Trap

High Probability Force Strike for Trend Continuation


Trading

By: Alson Chew

Copyright © 2021 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 1
© 2021 Piranha Pte Ltd. All rights reserved.
FORCE STRIKE BAR FORMATION STRATEGY

Force Strike (FS) as an extension to the 3 main EXE bars


FS is a price action fractal that demonstrate bear or bull trap by itself. Occurrence of this price action
structure at the common simple moving averages indicates a shake out of short-term/swing traders
by MM.

Traders can take on standalone price action trades on bullish FS when there is uptrend
retracement test of the _______________ .

Traders can take on standalone price action trades on bearish FS when there is downtrend
retracement test of the _______________ .

Do refer to Entries and Exits chapter for detailed trade execution technique.

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FORCE STRIKE BAR FORMATION STRATEGY

Mother Bar Baby Bar

Baby bar within


CRITERIA
Mother bar range
• Baby bar must be equal or within Mother
bar range

• Mother bar or baby bar can be bullish or


bearish

Baby bar within SIGNIFICANCE


Mother bar range
• Inside bar shows a period of indecision on
the chart

• Inside bar should not be used as an


Baby bar outside of execution sign but a prelude to Force Strike
Mother bar range bar formation (next slide)

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FORCE STRIKE BAR FORMATION STRATEGY

CRITERIA
Mother Bar Baby Bar (Max cluster of 5 Bars)
• Satisfy Inside bar formation criteria
• Price movement to break below Mother Bar Low
and returns within Mother Bar range.

Max cluster of 3 Bars SIGNIFICANCE


• Bullish PIN
• Bullish Ice Cream • Period of Inside bar indecision cause a false
break below Mother Bar low which trap breakout
Bar
traders on the downside
• Mark Up Bar
Price movement
Price movement • Accumulation occurs here when Market Maker
breaks down of
returns to mother collects sell stop orders and market sell orders to
mother bar range
bar range turn his net book position long for high probability
upside price movement

© 2021 Piranha Pte Ltd. All rights reserved. 4


FORCE STRIKE BAR FORMATION STRATEGY

CRITERIA
Price movement Price movement returns
breaks up of to mother bar range • Satisfy Inside bar formation criteria
mother bar range • Price movement to break up of Mother Bar
High and returns within Mother Bar range.

SIGNIFICANCE
• Max cluster of 3 Bars
• Bearish PIN
• Period of Inside bar indecision cause a
• Bearish Ice Cream Bar false break up of Mother Bar High which
• Mark Down Bar trap breakout traders on the upside

• Distribution occurs here when Market Maker


collects buy stop orders and market buy
Mother Bar Baby Bar (Max cluster of 5 Bars) orders to turn his net book position short for
high probability downside price movement

© 2021 Piranha Pte Ltd. All rights reserved. 5


FORCE STRIKE BAR TREND CONTINUATION STRATEGY

Bullish Force Strike in Uptrend Continuation


CHARACTERISTICS

✔ Price Action to be in clear upside trending mode (higher highs, higher lows and visually general price movement
upwards)
✔ Price Action above 50sma (positive flow)
✔ Bullish FS to be seen at/near retracement to 20 or 50 SMA

6
© 2021 Piranha Pte Ltd. All rights reserved.
FORCE STRIKE BAR TREND CONTINUATION STRATEGY

Bearish Force Strike in Downtrend Continuation


CHARACTERISTICS

✔ Price Action to be in clear downside trending mode (Lower lows, lower highs and visually general price movement
downwards)
✔ Price Action below 50sma (negative flow)
✔ Bearish FS to be seen at/near retracement to 20 or 50 SMA

© 2021 Piranha Pte Ltd. All rights reserved. 7


FORCE STRIKE BAR TREND CONTINUATION STRATEGY

PRACTICE

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

© 2021 Piranha Pte Ltd. All rights reserved.


FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

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FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

Copyright © 2021 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 18
FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

© 2021 Piranha Pte Ltd. All rights reserved. 19


FORCE STRIKE BAR TREND CONTINUATION STRATEGY – PRACTICE EXAMPLES

© 2021 Piranha Pte Ltd. All rights reserved. 20


Price Action False Break – Bull and Bear Trap
High Probability Force Strike for Trend Continuation
Trading

By: Alson Chew

Copyright © 2021 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 21
© 2021 Piranha Pte Ltd. All rights reserved.

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