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Bounce Trading Mastery

Part I

Basics

In order for you to prepare yourself please study all

charts below. This will help you understand the basics of

the bounce trading strategies.

Of course you will have questions, but not to worry. We

will go over everything on October 14. We will also have

a lot of time for Q & A after the main session!

www.spartantraderfx.com

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Content

Content 2

What is bounce trading 3

Why bounce trading 4

Style I -Intro

Identify a range and look for bounce trade setups 5

Trend and trend Change? 6

No Clear market direction 7

Confirmed trading range 8

Draw your support and resistance levels 9

Compare with my support and resistance areas 11

Look for the bounce trade candles 12

Basic Entry Rules 13

Place your stops and targets 14

Combine Basic Bounces with the Spartan FX Academy

System 15 – 17

Bounce trading on the EMA 200 & 633 18

Basic EMA Bounce Trade & Management Rules 19-21

Advanced Bounce Trading Strategies Basics 22 -24

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What is bounce trading

As bounce traders we are looking for a setup that

suggests with a high probability that the price will reject

an important support or resistance level and move again

away from it, rather like a ball when it hits the ground

from high above.

We usually look for bounces in ranging markets and on

major support and resistance levels! The trick is to do

your top down chart approach and find these very

important key support and resistance areas first!

Than you need to have clear trade entries, exit and

money management rules to grow your trading account

steady and stress less!

I personally also like to trade on bounces on the EMA

200 and EMA 633. I will explain in much detail why and

how I do that exactly later on in this book!

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Why bounce trading

The reason I suggest to add proven bounce trading

strategies to your trading plan is very simple; You can

take advantage of bigger ranges, enter a trade “early” and

turn often a day trade into big powerful swing trade, or to

bring it to the point; you get high probability setups and

can make a lot of profits if you do it right!

Bounce trade setups appear also almost every day on

almost every product. You can use my bounce trade

strategies on forex as well as stocks, options, metals or

anything else as long as you have charts for it.

You can also adjust these strategies to your own trading

style. It works great for Swing traders, but also for day or

even scalping traders.

Like always in life, you need to get used to the rules and

practice live, to master bounce trading a 100%.

Let’s start with the first exercises…

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Style I –

Identify a range and look for bounce

trade setups

Please read all details on the following charts many times

and pay attention to the price action, lines and comments.

If you are not sure about something during your studies,

go back to the previous charts and start over again.

Repetition is the best way to understand and clear things

up fast!

The Tools: Open a free Meta Trader 4 demo account;

add Heikin –Ashi candles to your charts (blue for up and

red for down moving candles) and four different EMA

settings (12-36-200-633). You can also download my

Spartan Trader FX template to make it simple and use it

on MT4 (save in your MT4 template folder).

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Print out the previous chart (page 9) if possible and draw your range support & resistance lines! Compare

this afterwards with my charts on the next page.

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Bounce trading on the EMA 200 & 633

The EMA 200 and 633 is a very powerful tool when it

comes to bounce trading. Of course you can trail and

track bigger trends using these two EMA’s, but I found

that price also likes to bounce here in particular

occasions.

For instance; we usually witness a bigger bounce if the

price moves away from the EMA 200 or 633 for a longer

time period.

The reaction (bounce) is usually very powerful and easy

to spot on the chart.

The price sometimes even break the EMA 200 or 633 a

bit before it bounces, and if there are other reasons, like

fundamental news it also happens that the price doesn’t

bounce at all.

But that is ok, because if we do not see a bounce, we

won’t get a bounce trading setup or entry according to

the rules.

Ok, so how does that look on a chart and what are the

rules. Take a close look at the following charts to

practice the basics…

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The Basic EMA Bounce Trade &

Management Rules

1. The price should touch the EMA 200 or 633 after a

bigger move or trend.

2. If the price comes from above the EMA’s, wait for

the bounce and the close of the first blue candle.

3. Place your trade after the close of the blue candle

(make sure the candle closes at a higher price than it

opened). Open three separate lots for three different

targets.

4. Place your account protection order as we call it

(STOP) below the low or the red bouncing candle (

between 15 -25 pips on a 4H and Daily chart and 10

-15 on all lower timeframes)

5. Now target 1:1 for the first lot. So, if you have a 15

pips stop go for 15 pips profits. Aim for 2:1 for the

second lot and target the next major resistance area

with your remaining lot.

Study the following charts and practice a bit

again…

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Advanced Bounce Trading Strategies

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Please read this book and study the charts more then only once to

ensure that you understand the basics of our bounce trade

strategies!

We will analysis and discuss all details in the live room on

October 14-2013

Enjoy your day

Nikos Mermigas

www.spartantraderfx.com & www.nikandjeff.com

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