My Trading Strategy: Price Reaction at Key Levels With Tight Stop Loss & Extended Take Profit

My trading strategy is built on price reaction at important key levels, focusing on precision entries, controlled risk, and maximized reward. This approach helps me maintain consistency and reduce unnecessary risk.

1. Trading Based on Price Reaction at Key Levels

I trade by observing how price reacts at major key levels such as strong support, resistance, supply–demand zones, and psychological areas.
At these levels, the market shows clear signals through:

• Rejection wicks

• Strong reversal patterns

• Break-and-retest setups

• Momentum shifts

Only when I see a solid, high-quality reaction do I take an entry.

2. Tight Stop Loss: Only 30–40 Pips

My strategy uses a short stop loss, typically 30 to 40 pips.

This gives me:

• Strong risk control

• Cleaner, higher-probability entries

• Reduced emotional stress

• Faster invalidation when the setup is wrong

A tight SL ensures losses remain small and controlled.

3. Long Take Profit: 50–100 Pips (Sometimes 200 Pips)

While my SL stays tight, my TP is significantly larger:

• Normal TP: 50–100 pips

• Strong setups: up to 200 pips

This results in excellent Reward-to-Risk Ratios and helps me maximize profits while minimizing risk.

Example:

• SL = 30 pips

• TP = 90 pips
  → RRR = 1:3

Just one winning trade can cover multiple losses.

4. Risk Management Rules

To maintain long-term performance, I follow strict rules:

• If I hit 3 consecutive stop-losses, I stop trading for the day

• This protects me from emotional trading and bad market conditions

• It keeps my discipline and mental clarity intact

Risk management is the core of this strategy.

5. Daily Trading Frequency: Only 4–7 Trades

I trade 4 to 7 trades per day, depending on market conditions.

This prevents:

• Overtrading

• Emotional burnout

• Low-probability entries

By focusing only on clean price reactions at key levels, I stay selective and maintain a high-quality trading approach.