The next setup of the Night Time Trading Strategy that I want to talk about is what I call the Inside Bar Pullback. This is a typical inside bar but with specific candle formation. So for buy entries we want to see the EMAs crossed upward and the inside bar is formed such that the outside bar or what some people call the mother candle (why not call it the father candle? Anyhow that's for another discussion) is a bullish and the inside candle is bearish which represents a pull back.
At this point we set an entry at the break of the outside candle with stops at the low of the outside candle and take profit 261% fib level plottted on the outside candle. See the picture below.
A picture is worth a thousand words. Look at how the EMAs are nicely separated it means there is strong bullish momentum and price did not break the opposite side of the outside bar. If it did I would have cancelled the pending order. But it triggered nicely into profits.
For this setup, I break evek at 200% fib level and lock in 1/2 Stop loss so at this point your will make profit. You stay in the trade until either take profit is hit or price close below the 8 EMA. This trade had stop loss of 55 pips and take profit of 100 pips. So you would definately make more than what is risked. This is the key to success in trading.
All that is needed is to be right at least 50% of the time and make more than you lose. This is what the professionals call Money Management or Risk Management. Remember in the long run, trading is just a game of probabilities, you will win some and definately lose some.
Until next time. Happy Night Time Trading.