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.